Omai Gold Mines

Auxico Resources Signs an MOU for the Exploitation and Trading of Industrial Sands in Bolivia

MONTREAL, April 19, 2021 /CNW Telbec/ - Auxico Resources Canada Inc. (CSE: AUAG) is pleased to announce that it has entered into a memorandum of understanding ("MOU") with the companies Minceracao Tantaline Im. & Exp. E Beneficiamento Ltda  ("Minceracao Tantaline") and Fantasia Mineracao R&M – Import Export ("Fantasia Mineracao"), and the Bolivian mining cooperative Cooperativa Minera Aurifera "El Cerrito la Codiciada" Ltda (the "Cooperative"), with regard to the exploitation and commercialization of tantalum, niobium, and tin from industrial sands originating from a 2,500-hectare property located in the municipality of La Concepción, Santa Cruz Department, province of Ñuflo de Chavez, Bolivia.

Auxico Resources Canada Inc. Logo (CNW Group/Auxico Resources Canada Inc.)

The Cooperative has mining from a 2,500 hectare property in the Santa Cruz Department and has obtained the necessary license for the export of industrial sands. Mineracao Tantaline has signed a partnership agreement with the Cooperative for the exclusive mandate to explore and commercialize the ore from the properties claimed by the Cooperative.

Samples from the property were recently analyzed by Coalia Research Institute in Thetford Mines, Quebec. The results of the first sample are presented in the table below:

Ta2O5

Nb2O5

Fe2O3

MnO

SiO2

TiO2

Al2O3

MgO

WO3

CaO

ZrO2

Ir *

SnO2

HfO2

UO2

K2O

PbO

ZnO

SrO

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

59.79

17.31

7.72

6.46

4.00

1.09

0.91

0.80

0.49

0.30

0.26

0.268

0.20

0.16

0.15

0.06

0.05

0.03

0.01

*          With the exception of iridium (Ir), the above sample results were provided with the use of XRF (X-ray fluorescence) by Coalia, which subsequently retested the sample with the use of inductively coupled plasma, or ICP.

The ICP sample results of the coltan ore received by Auxico yielded a grade of 2.68 kg of iridium (Ir) per metric tonne (0.268%), or approximately 86 ounces of Ir per MT.

Iridium is a silver-white transition metal of the platinum group and is considered to be the second densest metal after osmium. It is the most corrosion-resistant metal, even at temperatures of 2000 °C. Given these properties, iridium is used as a hardening agent for platinum alloys. It is also employed in high-performance spark plugs, crucibles for recrystallization of semiconductors at high temperatures, and electrodes for the production of chlorine in the chloralkali process.

The current market price of iridium is approximately US$6,400 per ounce; the price of iridium has increased significantly over the past year due to supply deficits. The Company is currently undertaking metallurgical testing of the samples with Central America Nickel Inc. in order to extract iridium from the coltan ore.

Under the terms of the MOU, Auxico has 60-days to conduct due diligence, after which the parties agree to enter into a joint venture ("JV") for the property in Bolivia. Auxico will have a 60% share of the net profits of the JV for committing 100% of the capital required for the technical operations, exploration, exploitation, concentration, transport and commercialization of industrial sands (tantalum) from the property in Bolivia. Minceracao Tantaline, Fantasia Mineracao and the Cooperative will jointly retain 40% of the net profits of the JV, and Auxico will have the option to purchase another 20% interest in the JV (for a total of 80%). Auxico will have the exclusive marketing rights for all metals emanating from the property.

Qualified Person

This news release was reviewed and approved by Joel Scodnick, P.Geo., an independent consultant to Auxico, in his capacity as a Qualified Person, as defined by National Instrument 43-101. The QP advises the reader to pay particular attention to the disclaimer shown below. Due to Covid-19 travel restrictions it is impractical for the QP to visit the property at this time.

Disclaimer: The samples described above were selected under the supervision of one of the property owners. These samples were shipped to a laboratory at Thetford Mines, Quebec, selected by Auxico. It is the opinion of the Qualified Person that an independent site visit and sampling program be established with proper control and chain of custody, and therefore the values presented above are not in compliance with NI 43-101. Because the chain of custody cannot be independently established from the above sample, the Company cautions the reader as to the reliability of the samples and the results thereof. The Company and the QP do not take any responsibility for the values presented in this press release and are being referred to for general information purposes only, and to demonstrate the potential that this property holds, which can only be established following due diligence by Auxico's QP.

About Auxico Resources Canada Inc.

Auxico Resources Canada Inc. ("Auxico") is a Canadian company that was founded in 2014 and based in Montreal.  Auxico is engaged in the acquisition, exploration and development of mineral properties in Colombia, Brazil, Mexico and the Democratic Republic of the Congo.

Additional information on Auxico can be found on the Company's website (www.auxicoresources.com) or on SEDAR (www.sedar.com) under "Auxico Resources Canada Inc."

ON BEHALF OF THE BOARD OF DIRECTORS

« signed »

« signed »

   

Pierre Gauthier
CEO, Auxico Resources Canada Inc.
This email address is being protected from spambots. You need JavaScript enabled to view it.
Cell: +1 514 299 0881

Mark Billings
President, Auxico Resources Canada Inc.
This email address is being protected from spambots. You need JavaScript enabled to view it.
Cell: +1 514 296 1641

The Canadian Securities Exchange (CSE) has not reviewed and does not accept responsibility for the adequacy or the accuracy of the contents of this release.

GET DAILY NEWS FLOW

Sign Up To Receive All Morning
News To Your Email Inbox

Please review our Disclaimer and Privacy Policy before subscribing.

GOLD BULL RESOURCES (TSX.V: GBRC)

Gold Bull Resources

Gold Bull Resources is a gold focused mineral exploration company that strives to generate and advance high-reward project acquisitions in regions with proven mineral wealth. Gold Bull’s mission is to grow into a US focused mid-tier... LEARN MORE