Member Info for Dcat80

Think there are still circa 20m warrants at 1.85p from the September placing including Sanderson that have shown happy to exercise (and probably forward sell) at these levels.

All adds to the companies cash position though and it’s not as if we’re short of funds, $250 per metre in the Bushranger presentation and we raised $6m in January, any income from legacy assets only going to help. In short I’d expect us to be funded for well over another 20 long holes. Plenty to get a better handle on the racecourse deposit and test others should CB choose.

O&W - they won’t be looking to develop the whole site at once. Pitombieras north target already at 4mt and that’s about a 300m by 300m deposit. Not sure if they’ll build plant near pit or nearer the main road so easier access for haulers, but dirt roads between for yellow machines should suffice. Can get a feel for size of plant from company presentation of similar operation 70km west.

Maybe traders buying in when busy not realising this isn’t a trading share and they’ll get stuck with the liquidity. When will they learn, some shares don’t trade well!!!

BF- possible, we did wonder why more drilling being done and pondered if future partner wanted a higher resource amount proved up before joining the party.

Obelix - yep it’s frustrating and seems random! Will have a look into that company you note. Steel mills produce a vanadium S L A G (lse thinks that’s a rude word so hides if typed together) as a by product when processing iron ore with vanadium content. Whilst China is obvious export market there are at least 2 steel mills near port pecam which could provide other options.

Hopefully all will become clear on offtakers in coming months!!!

https://twitter.com/jangadamines/status/1372132172933562368?s=21

Obelix - apologises for delay, your post on largo only just appeared for me- lse chat at its finest!

Yep as discussed before largo obvious candidates and we did of course move our accounts to same dates as they and report resource not to Jorc, but the NI43-101 standard required by any company listed on Canada such as Largo Resources...

Yep, good to see them getting some love over last couple of sessions.

As you say hopefully we’ll get offtake agreements and potentially a partner in months ahead, certainly have little doubt web will having producing asset next year!

You not watch the Luis and JP interview with someone I think from the local government? Discussion about what Brazil was doing right to attract investment and what could be done to improve? That was the first time I heard from Luis and he came across as a good no nonsense kind of guy.

Was good to see him point out the mafic rock as well. We know nearby (Pedra Branca) this contains PGMs, nickel, cobalt, chrome and copper. Suspect there is mineralization on our mafic rock, but what exactly? Is it commercial? Anything there is of course a bonus as our vanadium, iron and Tio2 is in the VTM mineralization!

Forgot to post the link, like i said last 2minutes covers largos ceo comments on their Tio2

https://www.youtube.com/watch?v=48FqpJF5tlY

Sewingmachine- the MET tests can be found in the 26/9/19 RNS based on Davis tube test which replicates the results of a wet magnetic process. The company now prefer the newer dry magnetic separation process which obviously means no tailing dam or need to get water to site I.e. lower environmental impact. Test work for this is being done and hopefully company will release before the Q2 PEA.

The davis tube results roughly speaking has 60% magnetic 40% non magnetic.

Magnetic contains 95% iron oxide and 1.25% vanadium.

The non magnetic ore 33.75% Tio2

It is the non magnetic ore I expect the majority of revenue and profit from. Clue being reference to chemical plant to process to Tio2. TNG Ltd, Neometals ltd and Largo resources are there other companies to look at for some peer comparison on this regard.

A very quick way to understand our excitement on this it to listen to the last 2 minutes of this interview by Largos CEO in which he discusses how Tio2 income will be as significant to largo as their vanadium. They are the operators of the highest grade vanadium mine in the planet and their Tio2 in the non-magnetic is 13%. Our grade is 33.75%...

Or skitter way. Tio2 pigment grade product sells for circa $2700 per tonne, so when processed 1 tonne of our non magnetic ore will produce $900 of pigment grade product (gold deposit would have to be 15g/t for that).

If you want to look into further detail it might be easier to talk via DM on twitter. If interested my username there is davidca041980.

Not producing yet, but clear route to do so now so won’t just be one of the many deposits found and never developed.

We’ve also a stake in fodere group who should also be producing themselves also i believe targeting production in Q1 2021, or maybe Q4 this year. In a way they’re similar to JLP in that they process others tailings to produce a number if products including vanadium and a 98% grade tio2 product.

Much as I dislike way selling has occurred in last week or so it does give good opportunity of entry at time we’re well financed and with lots more news to come.

Trial mining licence can be issued before the grant of environmental permit, but will only take affect when environmental permit is received. That’s from the October updates to trial mining.

Environmental permit work was being done on the Pedra Branca licence which pitombieras was part of at the time. I’m not sure what status was then, but think much have been quite advanced.

Pedra Branca relied on wet magnetic separation process with tailing dam plus use leaching (use of acid). Obviously are process at pitombieras does not require acid and hopefully is the dry magnetic process I.e. very low risk from an environment point of view. It might be we are awaiting the dry magnetic separation test results before this is completed, however with it being a lower risk than Pedra Branca i can’t see any difficulty there.

Local government are very keen for mining investment. Was a video that JP and Luis did with someone asking them what the state was doing right, what needed to be done etc.

Key as few suggested here though is always make it about benefits to the area. Always employ locals, use local contractors (be it catering, haulage etc) labs - list goes on. We’re far enough outside towns to not be nuisance, but 100% right we make all efforts to never get on the wrong side.

Found it funny yesterday reading some of the anti mining posts on twitter checking the pdac2021 hashtag. Some companies they had issues I can understand, but blanket blaming of the mining industry with the needs of the planet and investment it can bring to countries needing it is mad. Good governance, risk management/environmental controls etc providing benefits to local economy and everyone reasonable should be happy!

Agreed. Application for licences wouldn’t need to be RNSd whether for additional land such as Mocidade (where we got notification upon being granted) or trial mining, would be nice courtesy though bearing in mind our thoughts on matter.

Then later in October changes were made to the trial mining application process streamlining it and also Dor example allowing the monetizing of multiple commodities (wonder of Luis had Jangada in mind then...).

Swizz picked up on these changes at the time and brief summary can be found on attached link. If anything suggesting process should now be quicker (so hopefully we’ll within 6months now).
https://twitter.com/swiizz/status/1322099799135539200?s=21

Remember it wasn’t just a Christmas card RNS we got from Brian last year, but he also remembered us in Valentine’s Day (he loves us PIs really).

Question: The importance of the Logistics Study commented on in the November RNS may have been overlooked by investors. With this in mind, can you provide advice on the following points. In Brazil trial mining permits are often granted, is this the case for vanadium, titanium and iron? Can all three be extracted with such a single licence? And, is there a standard amount of ore such a trial licence would allow? What would the stages of a trial mining application be? And, any guidance on timeframes?

Answer: As noted in the question, Trial Mining licences are a normal process in Brazil. The specifics of the licence will be determined by the authorities on an application by application basis, and we are unfortunately not able to comment any further in this regard as we are not in possession of the necessary information. Brazil is renowned for being a country that sponsors mining development and as such the process to obtain a Trial Mining licence is well defined and generally takes 3-6 months.

Obelix- your not on twitter so missed me posting link below. Tronox doing well (Tio2 producer) they have mining operation and chemical plant near maracas and Salvador I believe. Much bigger than largo resources as well. Larger company than Largo resources and worth having a look at when you’ve time

https://www.nasdaq.com/articles/why-this-little-known-stock-shot-up-19.5-and-hit-a-52-week-high-in-february-2021-03-08

Obelix - I can certainly see Largo as a project partner on pitombieras should we seek a partner to expedite building of a chemical plant. That won’t be cheap and would be well outside our current means.

In meantime looks like someone sold well below bid. I just got a top up at 8.8p (£750). Buying below placing price is crazy, but then market is full of fools!