Resouro unveils new deal to unlock Tiros’ potential

Highlights:

• Resouro’s subsidiary enters into a strategic partnership with YM Serviços Minerais for mineral extraction at the Tiros Project.

• The collaboration focuses on advanced processing technology to recover titanium and rare earth elements.

• Resouro to conduct extensive testing and studies to optimize the Tiros Project’s operations and product marketability.

Resouro Strategic Metals (ASX:RAU) has entered into a memorandum of understanding (MoU) with YM Serviços Minerais to advance the Tiros Titanium and Rare Earths Project located in Minas Gerais, Brazil. This project is focused on extracting valuable minerals such as titanium and rare earths, which are vital for various industries, including electronics, energy, and manufacturing.

Technology Partnership to Enhance Processing

Under the MoU, YM Serviços Minerais will provide its high-performance fusion sulphuric acid leach process. This method has shown promising results in initial tests using composite samples from the Tiros zone. The process is expected to play a critical role in improving the efficiency of mineral recovery from the project, with the goal of producing titanium concentrates and rare earth products such as precipitated mixed rare earths oxide or rare earths carbonate. This technology aims to maximize product recovery and minimize waste disposal during the metallurgical process.

Financial Commitments and Testing Phases

As part of the agreement, Resouro will pay for various stages of testing and project development. The company will initially fund laboratory tests on composite samples and pay a fixed monthly amount for the first year or until a Prefeasibility Study (PFS) is completed. Further payments are contingent upon the completion of pilot tests and the PFS, with additional payments based on the successful establishment of an offtake agreement.

Resouro is also committed to covering the costs of a demonstration plant based on the positive cash flow from the project, capped at a specified amount. These payments are part of the company's broader strategy to advance the Tiros Project through multiple phases of testing, resource estimation, and technical development.

Ongoing Work to Optimize Operations

Both Resouro and YM Serviços Minerais have commenced additional testwork to verify the initial results and fine-tune the project’s operational parameters. This includes processing composite samples to refine the production of titanium concentrates and rare earths products, along with assessing other byproducts for market viability.

The companies are also planning parallel beneficiation testwork, which is expected to be completed during the third quarter of the year. The results will inform the development of the pilot plant and flowsheet. In addition, Resouro expects a resource estimate for the Northern Block of the Tiros Project to be available by the end of the current quarter.

Resouro’s Strategic Focus on Brazil’s Mineral Sector

The Tiros Titanium and Rare Earths Project covers a large area in Minas Gerais, a region known for its strong infrastructure and mineral-rich resources. Resouro is positioning itself as a significant player in Brazil’s mineral exploration and development sector. The company’s focus on sustainable processing and advanced recovery technologies aims to enhance the economic viability of its projects, including Tiros.

Through this partnership with YM Serviços Minerais, Resouro is taking steps to develop innovative solutions that could transform the way titanium and rare earth minerals are extracted and processed. By integrating cutting-edge technology into its operations, Resouro aims to unlock the full value of its projects while adhering to high standards of environmental responsibility.

Looking Ahead for Resouro

With ongoing work on the Tiros Project, Resouro remains committed to advancing its portfolio of mineral projects in Brazil. As part of its strategy, the company will continue to explore and implement technologies that not only enhance operational efficiency but also ensure long-term sustainability in the mining industry.

In the coming months, Resouro’s efforts to refine its processes and expand its resource base will likely play a crucial role in shaping the company’s future in the mining sector. As the project progresses, Resouro’s developments could contribute to its standing in the broader context of ASX Mining Stocks, alongside other companies operating in the dynamic and evolving global mining market.