Nov 11, 2024

Resouro Strategic Metals Hits 4m @ 22.5% TiO2 and 7,117ppm TREO at Tiros Project, Brazil

Introduction:

Resouro Strategic Metals Inc. (ASX: RAU) (Market Cap: $24M | Last Close: $0.28 | Cash Holding: $6.5M June 30) has reported assay results from the first three diamond drill holes of its infill drilling campaign at the Tiros Titanium and Rare Earth Elements Project in Minas Gerais, Brazil, highlighted by 4 meters at 22.5% TiO2 and 7,117ppm Total Rare Earth Oxides (TREO).

Drill Results:

4m @ 22.5% TiO2 and 7,117ppm TREO from 13m (including 1,260ppm NdPr) [FDTIR-35]
4m @ 18.5% TiO2 and 3,969ppm TREO from 53m (including 818ppm NdPr) [FDTIR-34]
3m @ 8.9% TiO2 and 8,034ppm TREO from 26m (including 1,196ppm NdPr) [FDTIR-35]‍
4m @ 8.63% TiO2 and 8,801ppm TREO from 52m (including 3,005ppm NdPr) [FDTIR-36]

Project Overview:

The Tiros Project comprises 29 mineral concessions totaling 497 km2 in Minas Gerais state, Brazil. It is located 350 km from the state capital of Belo Horizonte in an area with well-developed infrastructure. The project represents a titanium and rare earth elements resource opportunity in a tier 1 mining jurisdiction.

Resouro's current Mineral Resource Estimate for Tiros stands at 1.7 billion tonnes of Inferred, Indicated and Measured Resources. The project area includes the Tiros North, Tiros Central, Sao Gotardo and Campos Altos regions of mineralization.

Program Details:

The recently completed infill drilling program consisted of 46 diamond drill holes totaling 2,922 meters in the Central Block at Tiros. This brings the total drilling at Tiros to 165 holes for 8,728 meters across all phases. The program focused on flat areas with low overburden thickness optimal for potential mining operations. Results will be incorporated into an updated mineral resource estimate and used for future mine planning.

Understanding These Results:

The reported intercepts are consistent with previous drilling at Tiros Central Block, adding confidence to the continuity of mineralization. High-grade titanium and rare earths mineralization correlates with high-iron and low-silica assays, while lower grades are associated with low iron and low silica.

A high-grade domain varying between 2-10 meters thick occurs near surface, overlying a lower grade layer typically 30-40 meters thick. Ground penetrating radar has been used in conjunction with drill data to assist in defining geological domains for resource estimation.

Management Commentary:

Alistair Stephens, Resouro's CEO, stated:

“Completing our infill drilling program brings us one step closer to achieving our development objectives and enhances our understanding of the resource's continuity and quality. We believe the data collected will provide valuable insights that support our future planning and decision-making as we advance towards a comprehensive evaluation. We look forward to sharing detailed results once the data has been fully analysed.”

Next Steps & Catalysts:

Resouro plans to undertake additional surveys focusing on areas with optimal stripping ratios for bulk mining trials. Further metallurgical test work is planned to optimize REE leaching recovery and TiO2 extraction conditions.

The company aims to complete a scoping study in 2025 as a precursor to prefeasibility studies. Preliminary mining and environmental baseline studies for bulk mining trials are also planned. Resouro will continue engagement with regulatory authorities to progress mining concession applications over the Central Block of Tiros.

Commodity Outlook:

Titanium dioxide and rare earth elements continue to see strong demand driven by their applications in high-tech industries and clean energy technologies. Brazil represents a strategic jurisdiction for the development of these critical mineral resources outside of China's dominant market position.

Conclusion:

The latest results from Tiros demonstrate the project's potential as a titanium and rare earths resource. With mineralization remaining open and only a small portion of the total tenement area explored to date, Tiros continues to show characteristics of a mineral system with substantial growth potential. The upcoming resource update and advancement of development studies will be key catalysts as Resouro progresses the project.

Sources:

RAU Drill Results Announcement

Additional Figures:

Australia

ASX

Rare Earths

Jan 16, 2022