Resouro Strategic Metals (ASX:RAU,TSXV:RSM) published the results of a maiden JORC-compliant mineral resource estimate for the central block of its Tiros titanium and rare earths project on Wednesday (July 17).
Tiros is located in Brazil’s Minas Gerais state, a leading iron ore, rare earths and phosphate jurisdiction. Its licence area covers roughly 450 square kilometres, including the most prospective portion of the Capacete Formation.
The resource estimate stands at 1.7 billion tonnes, divided into 1 billion tonnes in the measured and indicated category, and 0.7 billion tonnes in the inferred category. It contains 3,900 parts per million (ppm) total rare earth oxides (TREO), 1,100 ppm magnet rare earth oxides (MREO) and 12 percent titanium dioxide (TiO2).
“We consider that the average resource grades … are well above average for this style of deposit,” said Chris Eager, president, CEO, director and founder of Resouro in a press release. The project contains a high-grade domain deposit of 120 million tonnes at 9,000 ppm TREO containing 2,400 ppm MREO and 23 percent TiO2.
Only 7 percent of the tenements comprising the project area are included in the resource estimate.
Resouro is currently completing a metallurgical testwork program, with results expected soon. The company is working with preferred laboratory partners to optimise rare earths leaching and TiO2 conditions.
The company also plans to complete infill drilling to expand Tiros’ resource estimate. After defining the Tiros central block it will explore Tiros Northern, Sao Gotardo and Campos Altos, which may become separate projects.
Resouro plans to undertake a scoping study later in 2024 before progressing to prefeasibility studies, as well as downstream studies and product testing to align Tiros’ metallurgical flowsheet with offtake partners.
Resouro’s stake in Tiros stands at 90 percent, and it closed its acquisition of that interest in March. The remaining 10 percent is held by RBM Consultoria Mineral Eireli, an unrelated third-party vendor.
The company started trading on the ASX on June 13 after raising AU$8 million. Resouro’s share price moved higher after the resource estimate announcement, closing the week at AU$0.54, up 12.5 percent.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.