Bemisa has been investing in the development and raised geological knowledge of a Rare Earth project in the northwest region of the state of Minas Gerais, between the municipalities of Carmo do Paranaíba, Arapuá, Matutina, and Tiros. The Bambuí project, which has resources of over one billion tons of rare earth oxide with world-class grades and is currently in the geological research and process testing phase for the recovery of ionic clay. As the company's CEO, Augusto Lopes, informs, "the venture holds three mining rights, covering approximately 3,600 hectares. Fourteen diamond drilling holes were carried out, with an average depth of 96 meters. The average grades range from 0.45% TREO (Total Rare Earth Oxides), with regions showing grades above 1% TREO. Given the positive results of the leaching tests, we have good expectations for the project's continuity, also, we have planned a new drilling campaign in the first half of 2024 and new tests in renowned laboratories, with which we hope to make a world-class rare earth deposit viable."
In addition to this project, Bemisa is investing in expanding its iron ore production capacity, entering gold production, and seeking opportunities in other minerals considered strategic for the energy transition, such as copper, nickel, graphite, and lithium.
Regarding iron ore production, in the first quarter of 2024 the company will be operating the Mongaís project in Minas Gerais, which will add 1 million tons/year of iron ore to the current capacity of 2.5 million tons/year of the Baratinha mine. "In addition to the Baratinha Complex, we have two more iron ore areas under development that will be implemented in the coming years. Among them, I emphasize the Pedra Branca Project, in the municipality of João Monlevade, currently in the environmental licensing phase, and another one, resulting from a partnership signed in 2022, known as the Picarro project, in the municipalities of Nova Era and Antônio Dias," says Augusto Lopes.
Pertaining gold, Bemisa has already started the commissioning process and expects to ramp up production throughout 2024 for the Água Azul do Norte project in the state of Pará, within the Carajás polymetallic district.
Finally, Bemisa is conducting exploration studies on 65 mining rights acquired in 2023 in the provinces of Alta Floresta and Tapajós, with high potential for copper and other minerals. Augusto Lopes explains that the company has been evaluating various projects over the past year. "Overall, we received over 32 projects, involving more than 15 mineral substances, among which copper, nickel, graphite, and lithium assets stand out. The company sees great potential for discovering new deposits of strategic minerals in Brazil, therefore, it has created a dedicated email ([email protected]) and also it holds a department dedicated to evaluating potential assets to eventually incorporate into its portfolio."
BRASIL MINERAL - Are there opportunities for growth in iron ore in Minas Gerais, or is the idea just to maintain (and perhaps expand) the Baratinha project
AUGUSTO LOPES - The Baratinha Complex comprises 20 mining rights, and the Baratinha Mine is just one of them. The complex totals over 100 million tons of iron ore resources, which gives a perfect dimension of the potential for exploiting these assets. Baratinha, I always like to say to our employees, is a great source of pride for Bemisa, the result of many years of hard work and persistence from a well-trained team focused on results.
The Baratinha concentration plant has the capacity to annually produce 2.5 million tons of premium quality sinter feed and does not use tailings dams. The operation is certified by international standards of quality, environmental management, and safety (ISO 9001, 14001, and 45001), and it has rigorous governance standards, with more than 3,500 days without lost-time accidents.
Still within our complex, we have the Mongais project, which is under development and is scheduled to start production in the first quarter of 2024. With the operation of this project, an additional production capacity of 1 million tons will be added to the Baratinha Complex.
In this context, Bemisa has two railway terminals located less than 40 kilometers from the complex, bringing competitiveness and reinforcing our value of socio-environmental responsibility, reducing the need for road transportation in the current and future demand.
In addition to the complex, we have two more iron ore areas under development that will be implemented in the coming years. I emphasize the Pedra Branca Project, in the municipality of João Monlevade, in the environmental licensing phase, and the other, resulting from a partnership signed in 2023, known as the Piçarrão project, in the municipalities of Nova Era and Antônio Dias.
This perspective reinforces our commitment to increasing our iron ore production, bringing our values to a safer, more modern, and sustainable mining approach to our projects in Minas Gerais.
BRASIL MINERAL - The Água Azul do Norte project marks the company's entry into the gold segment. Are there plans to grow in this sector?
AUGUSTO LOPES - Our first gold operation, called the Água Azul Project, is located in Pará, in the Carajás polymetallic district, and began its commissioning phase in the second half of 2023, with our expectation to ramp up production in 2024. We believe in the potential of the gold mineral and in diversifying our portfolio.
Bemisa has been investing in geological and metallurgical research for over five years to ensure the technical, economic, and socio-environmental viability for the start of this operation.
The exploration program includes over 52,000 meters of drilling activities, and the results have been consolidated in an Independent Resource Report based on the NI 43-101 standard. Most of the drilling was conducted at the Abelhas target, aiming to ensure the project's payback. In this regard, there are still three other mining rights in the region owned by the company that have excellent potential for increasing the resources of the Água Azul Complex.
We are in the development phase of research activities in other areas as well. In the northern part of the state of Mato Grosso, for example, there are drilling campaigns in the Novo Mundo complex. This venture includes the Raimunda, with defined resources, and Flor da Serra and Paranaíta targets, which are currently in the exploratory research phase. The first drilling campaign for the Flor da Serra target was completed in 2023, indicating potential for high-grade ore.
Agua Azul confirms our perception that gold brings significant added value to our company and society, generating employment and income in a remote region of the country.
BRASIL MINERAL - Bemisa is one of the companies that heavily focus on mineral research. What is the focus of the current research efforts?
AUGUSTO LOPES - Throughout our 16-year history, we have accumulated extensive geological knowledge of the Brazilian territory. We have been involved in the exploration of various mineral assets at different stages of development, conducting geological mapping, extensive geochemical and geophysical survey campaigns, as well as exploratory and detailed drilling programs for the definition of mineral resources and reserves.
The updated numbers indicate that, from the first drill hole in 2008 until the end of 2023, Bemisa has executed over 215,000 meters of drilling, totaling more than 1,800 boreholes. These indicators demonstrate the company's commitment to the continuous search for mineral opportunities in Brazil.
We have always been attentive to the market needs, as the technological evolution of the world demands, on a large scale, the consumption of mineral commodities. With this broad vision, a range of opportunities opens for the development of mineral assets such as high-grade iron ore and rare earths, considered today as strategic minerals, the basis for the development of the much-touted energy transition. This new low-carbon world will increasingly demand the supply of mineral commodities.
Trends point towards the transition of the energy matrix of industries and the new paradigm of consumption preferences in productive chains. We understand that in this scenario, the supply of basic metals will be necessary for the world to move towards sustainable development.
For this reason, Bemisa invests in the development and increased geological knowledge of our Rare Earth project. Located in the northwest region of the state of Minas Gerais, between the municipalities of Carmo do Paranaíba, Arapuá, Matutina, and Tiros, the Bambuí project has resources of over one billion tons of rare earth oxides with world-class grades and is in the geological research and process testing phase for the recovery of ionic clay.
The project comprises three mining rights, covering approximately 3,600 hectares. Fourteen diamond drilling holes were carried out, with an average depth of 96 meters. The average grades range from 0.45% TREO (Total Rare Earth Oxides), with regions showing grades above 1% TREO. Given the positive results of the leaching tests, we have high expectations for the project's continuity, with a new drilling campaign planned for the first semester of 2024 and further tests in renowned laboratories, aiming to make a world-class rare earth deposit viable.
Towards the end of last year, in 2023, we closed an agreement to acquire 65 mining rights in the provinces of Alta Floresta and Tapajós, with high potential for copper and other minerals. Exploration studies in these areas have already begun.
Furthermore, Bemisa has evaluated various projects over the past year. Overall, we have received over 32 projects involving more than 15 mineral substances. Among the sought-after mineral substances, we highlight the company's interest in copper, nickel, graphite, and lithium assets.
We see enormous potential for the discovery of new deposits of strategic minerals in Brazil. To expedite the receipt of new opportunities, we have created an exclusive email (novosnegó[email protected]) for this purpose and we also have a dedicated area for evaluating these potential assets to eventually incorporate them into our portfolio.