High-Quality Bauxite-Gallium Resource Estimate Unveiled

Overview of the Amargosa Bauxite-Gallium Project
Brazilian Rare Earths Limited (ASX: BRE / OTCQX: BRELY) is thrilled to share the results of its Maiden Mineral Resource Estimate for the Amargosa Bauxite-Gallium Project. This landmark estimate highlights a vast and high-quality bauxite province, which includes outstanding alumina grades coupled with noteworthy volumes of gallium, marking a significant step forward in sustainable mineral development.
Bauxite Mineral Resource Highlights
The Amargosa project boasts impressive figures with an estimated 568 million tonnes of bauxite, showcasing an average Total Available Alumina (TAA) of 29.8%. This includes direct-ship bauxite and processed results at premium specifications, desirable for both market stability and profitability.
Key Grades and Types
Direct-Ship: Among the estimates, Direct-Ship Bauxite comprises 98 million tonnes, achieving a TAA of 41.9%. Additionally, processed bauxite yields 191 million tonnes with a TAA of 40.8%. These attributes illustrate both the project's potential and its alignment with international bauxite market demands.
Advantages of Amargosa Bauxite
- Benchmark-grade bauxite: The product specifications are aligned with Guinean benchmarks, enhancing appeal to global refiners.
- Low reactive silica index: This characteristic not only cuts down on caustic consumption but also enhances alumina recovery, an essential need in evolving refinery standards.
- High-confidence resource estimation: Nearly 90% of the direct-ship resource is classified within the Indicated Mineral Resource category, providing a solid foundation for future mine planning and economic evaluations.
Gallium Resource Significance
A substantial component of the Amargosa Project's appeal is its gallium resource. The project contains 27,098,000 kilograms of gallium, with an average grade of 47.7 ppm, indicating significant potential for contributing to supply chains crucial for modern technology sectors.
Strategic Gallium Opportunity
This project positions Brazilian Rare Earths Limited to effectively address the evolving demands for gallium, a critical element in the semiconductor and defense industries. As demand for high-performance materials increases, AMargosa stands to play a pivotal role as a strategic supplier.
Operational Logistics and Growth Potential
The Amargosa project's location in Bahia, Brazil offers a vital logistical advantage. The established direct-ship opportunity allows for efficient transportation and connectivity to key export ports, notably Enseada, approximately 160km away.
Infrastructure and Efficiency
- Strong regulatory framework: Brazilian Rare Earths Limited operates within a supportive system that facilitates mining and development expeditions.
- Cost-effective operations: The 98 million tonnes of high-grade bauxite ensure a capital-efficient rollout of operations as the company leverages existing highways and infrastructure.
- Collaborative efforts: A memorandum of understanding with the Port of Enseada aims to enhance logistics and minimize transportation costs related to the bauxite exports.
Strategic Pathways Forward
With the completion of this mineral resource estimate, Brazilian Rare Earths Limited outlines several strategic initiatives aimed at maximizing shareholder value. The company is considering options including joint ventures or potential spin-outs to allow focused development of its Rocha da Rocha rare earth resources.
Next Steps in Development
The company aims to expedite its Scoping Study, completing it by the end of the year, to further assess product grade enhancements and expand resource drilling efforts. Such initiatives are expected to underpin the project's long-term viability and success.
Bernardo Da Veiga, Managing Director and CEO, expressed enthusiasm about the project's capabilities, stating that the Amargosa site defines a premium bauxite province that meets the critical demands of the global alumina refineries.
With an efficient highway system leading to a robust export infrastructure, the company sees an excellent opportunity to establish a premise for an early and cost-effective direct-ship bauxite operation.
Frequently Asked Questions
What is the significance of the Amargosa Bauxite-Gallium Project?
The project represents a substantial mineral resource discovery, highlighting both bauxite and gallium resources, which are essential for various high-tech applications.
What are the key qualities of the bauxite extracted?
The bauxite features high alumina grades and a low reactive silica index, making it attractive for international refiners.
How does the infrastructure support the project?
Strong infrastructure facilitates transportation of raw materials to key ports, thus ensuring efficient export capabilities.
Who is leading Brazilian Rare Earths Limited?
Bernardo Da Veiga serves as the Managing Director and CEO, guiding the company's strategic initiatives.
What future developments are planned for Amargosa?
The company plans a comprehensive Scoping Study and resource drilling to optimize and identify further resource potential.
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