The Mineral Resource Estimate (MRE) for the project has been scheduled with an effective date of February 1, 2024. It is authored by Mr. Yann Camus, P.Eng., a professional engineer employed by SGS, and adheres to the current Standards on Mineral Resources and Reserves, Definitions, and Guidelines set by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM). The report clarifies that Mineral Resources which are not classified as Mineral Reserves do not currently show economic viability, and emphasizes that further exploration and additional drilling will be necessary to upgrade Inferred and Indicated Mineral Resources to Measured Mineral Resources. It also notes the inherent uncertainty in converting any part of Mineral Resources into Reserves.
The analytical processes used for the MRE were conducted by SGS GEOSOL using methods such as ICM40B, which involves Multi Acid Digestion combined with ICP OES and ICP MS, and IMS95R, which uses Lithium Metaborate Fusion followed by ICP-MS. The MRE is defined with a cut-off Net Smelter Return (NSR) value of $10 per tonne. Details on the full price list and recovery methods used for NSR estimation are included in Table 2, which also lists an estimated basket price for Total Rare Earth Oxides (TREO) at $26.98.
For optimizing the mining operation, GEOVIA’s WhittleTM software was utilized to outline an optimal pit envelope, indicating reasonable prospects for economic extraction. The preliminary pit optimization includes parameters such as a 30-degree overall pit slope, mining costs of $2.10 per tonne, processing and general/administrative costs of $9 per tonne, and accounts for a total mining loss and dilution of 5%. Further specifics of these parameters are also provided in Table 2, where forward-looking prices for the basket and oxides are based on market trends and economic forecasts, although actual prices may vary due to changes in these factors.
The report also addresses the calculation of bulk densities, which were determined through physical test work and assumptions about porosities for each type of material. Definitions for categories of oxides like Total Rare Earth Oxides (TREO), Magnetic Rare Earth Oxides (MREO), and Heavy Rare Earth Oxides (HREO) are detailed, listing the specific oxides included in each category. Finally, the report warns that the MRE might be significantly impacted by various external factors including environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues, emphasizing the complex nature of resource estimation.
The PCH Ionic Clay Project is located in Goiás state, Brazil, approximately 216 km by GO-060 from Goiânia, the state capital, and 410 km from Brasilia, the capital of Brazil. The property is located approximately 30 km from Iporá, a mid-size city of approximately 31,500 population (2018 census). Access to the property from Iporá is excellent by regional roads, with a mix of hard surface and gravel surface roads. Within the property boundaries, a network of gravel surface rural and unsurfaced farm roads provides excellent access. Figure 1 illustrates the property location.
The PCH property surrounds tenements held by Vale and Dundee Precious Metals in the central area of the tenement package, as well as tenements held by Atlas Litio in the northwest of the overall PCH tenement holdings (Figure 2). The Vale and Dundee tenements are associated with a significant ultramafic complex comprised of dunite and peridotite which is the focus of nickel exploration.
DNPM Process Number | Area (ha) |
860060/2018 | 1901.19 |
860058/2018 | 1874.60 |
860059/2018 | 1864.41 |
860498/2020 | 1990.87 |
860466/2020 | 1005.85 |
860464/2020 | 983.40 |
860465/2020 | 1978.45 |
860469/2020 | 1995.29 |
860468/2020 | 1972.94 |
860467/2020 | 1984.03 |
860307/2023 | 1982.69 |
860343/2023 | 1647.94 |
860342/2023 | 1965.26 |
860341/2023 | 1982.23 |
860340/2023 | 1969.31 |
860339/2023 | 1982.73 |
860337/2023 | 1983.87 |
860338/2023 | 1964.39 |
860336/2023 | 1984.98 |
860335/2023 | 1980.50 |
860334/2023 | 1983.50 |
860333/2023 | 1984.98 |
Total | 40,963.41 |
Source: 3S LTDA
Figure 1 provides a detailed tenement map, including the recently acquired tenements. All tenements are held as exploration tenements and are valid for various periods from June 15, 2024 through to at least 30 September 2027. Surface rights are held by local landowners. The surface area is currently predominately farmland used for grazing and field crops such as soybeans.
Exploration to date on the property has identified six priority targets (“alvo”) on portions of the tenements in the western half of the property (Figure 3). Target IV has been the primary focus of activity to date.
Access to the property is excellent via a network of hard surface, gravel and unsurfaced roads from Iporá and throughout the tenements. The climate is predominantly tropical, hot, and semi-humid with a dry season (April to September) and a rainy season (October to March). The average annual rainfall is 1,500 mm. The average annual temperature varies between a maximum of approximately 33°C in the summer and a minimum of 17°C in the winter. The project area is located within a low
To medium rainfall area. There is no surface water in the area except for small creeks. The vegetation in the area is represented by fields, savannas and gallery forests. The area is classified as “cerado”, characterized by the occurrence of grasses, shrubs and spaced trees. Much of the original vegetation has been replaced by pastures with intense livestock activity and field crops such as soybeans. Higher elevations are typically moderately forested. Local roads are well maintained and travel by standard vehicles is generally possible. 4WD vehicles are generally not required.
Figure 2 provides a detailed tenement map, including the recently acquired tenements. All tenements are held as exploration tenements and are valid for various periods from June 15, 2024 through to at least 30 September 2027. Surface rights are held by local landowners. The surface area is currently predominately farmland used for grazing and field crops such as soybeans.
Iporá is a regional population centre with a population of approximately 31,500 (2018 census). The city can provide a full range of services in support of exploration. There is a municipal airport which can handle small regional carrier aircraft. The nearest railway siding is at Goiânia. The railway leads north to the town of Palmas and south the São Paulo and the port of Santos.
Drilling programs within Target IV have yielded comprehensive assay data, with a focus on delineating a maiden Mineral Resource Estimate (MRE) and NI 43-101 in collaboration with SGS Geological Services.
This newly identified mineralized Buriti Target, located within the weathered profile southward from the current area of interest, was revealed through exploratory RC and Auger drilling conducted as part of the completed 2023 drill program.
Newly discovered mineralized zone named BURITI, showcasing mineralization of Scandium (Sc), Cobalt (Co) and Rare Earth Elements (REE).
300-hole drill campaign, 47 holes were executed within the newly defined Buriti Target Zone.
Analytical results for the 46 pending RC and Auger drill holes from this mineralized zone will be reported once received. Metallurgical testing is planned to confirm the economic potential of the Buriti Target.
The Company has an ongoing auger drilling program across the entire PCH property to identify additional target zones, which further underscores our commitment to thorough exploration beyond the established Target IV and Buriti Target areas.
As of now, there are no official technical or mineral reports accessible for the PCH project.
TBA
Stephen Burega, President
sburega@appiareu.com
+1 (647) 515-3734
Tom Drivas, CEO
tdrivas@appiareu.com
(416) 876-3957
General Contact
sburega@appiareu.com
+1 (416) 546-2707
Office
Suite 500 – 2 Toronto St.
Toronto, ON, Canada, M5C 2B6
