Overview
Subject to exchange approval, the wholly-owned Florália DSO Project is centrally located amidst 5 major iron mines, 10 DSO purchasers, and proximal to rail within Brazil’s “Domestic Steel Hub” in Minas Gerais, Brazil’s largest iron ore producing State. Local mining infrastructure includes railways, haul roads, mining services and personnel.
Florália was discovered in 2020 while mining gravel for road base. The open cut benches (80m wide & 40m deep) revealed a plunging band of iron ore at the base and sub-horizontal banding at the top.
Brazil’s Iron Ore Demand & Steel Industry Growth
While Australia’s iron ore demand relies on global seaborne demand, Brazil’s steel industry operations in Minas Gerais are proximal to iron ore miners.
Brazil is a top mining jurisdiction:
- The Fraser Institute continues to rank Brazil as one of Latin America’s top mining regions
- Brazil is the world’s 2nd largest producer of iron ore and holds the largest iron ore reserves outside Australia
High-Grade Hematite (DSO)
Direct Shipping Ore (DSO) is high-grade hematite suitable for direct shipping to refineries due to its high-grade and minimal impurities like silica, phosphorus, and alumina. The DSO process is simple, circumventing the need for costly processing facilities and large-scale operations, translating to a significant cost advantage and much shorter time to production.
Mineralization
The Florália hematite deposit consists of four distinct bodies of iron ore mineralization along a southeastern trend. Mapping has traced iron ore along 1,000m of strike to the north and a further 822m to the southwest, with the largest body located at the southeastern end. This body is exposed by an historic open pit 80m wide and 40m deep.
2023 Exploration
In 2023 gold miner Jaguar Mining (TSX: JAG) conducted mapping consisting of 41 channel samples collected over a 151m accumulated length. Using a density of 2.71 g/cm3 resulted in definition of an estimated geological target of 2,971,233 to 4,496,333 m3 or 8,052,041 to 12,184,160t at average of 58% Fe*.
Geological target represents under 5% of the property.
The source of the exploration information on the Florália Property is “Depósito Florália Oportunidade para minerrio de ferro by Jaguar Mining Inc.” The document is undated.
Max Closing of the Transaction remains subject to customary closing conditions, including, among others, the final approval of the TSX Venture Exchange, refer to NR dated August 6, 2024.
Max cautions investors the potential quantity and grade of the iron ore is conceptual in nature, and further cautions there has been insufficient exploration to define a mineral resource and Max is uncertain if further exploration will result in the target being delineated as a mineral resource.
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