Back to all announcements

DJ Auxico Resources Canada Inc. Auxico Options Niobium-Tantalum-Scandium-Tin Property

 
TIDMAUAG 
 
7 February 2019 
 
                         AUXICO RESOURCES CANADA INC. 
 
                          ("Auxico" or the "Company") 
 
                                 NEWS RELEASE 
 
        AUXICO OPTIONS NIOBIUM-TANTALUM-SCANDIUM-TIN PROPERTY IN BRAZIL 
 
Montreal, Quebec, February 7, 2019 - Auxico Resources Canada Inc. (CSE: AUAG) 
is pleased to announce that it has signed a memorandum of understanding ("MOU") 
with a Brazilian company, Company and Partners Consultoria EM Comércio Exterior 
("Consultoria"), to earn a 70% interest in a joint venture on its Palha 
Property. 
 
Consultoria recently sent two samples to Auxico, which were analyzed at the 
Centre of Mineral Technology in Thetford Mines, Quebec. The results of the 
samples are presented in the table below: 
 
                       Niobium         Tin    Tantalum    Scandium 
                       (Nb2O5)      (SnO2)     (Ta2O5)     (Sc2O3) 
Sample                       %           %           %         g/t 
 
M-8731 BRAZIL_1         50.70%       3.18%       3.10%       700 g 
 
M-8731 BRAZIL_2          1.29%      90.20%       1.17%           - 
 
Given the grades of niobium and tin, specifically, in the samples provided 
above, Auxico decided to sign an MOU with Consultoria. Under the terms of the 
MOU, Auxico has 120 days to conduct due diligence, after which the parties 
agree to enter into a joint venture ("JV") on the Palha Property. Auxico will 
have a 70% share of the net profits of the JV for committing 100% of the 
capital required to begin industrial production of all metals (e.g. base, 
precious, industrial) on the Palha Property. Consultoria will retain 30% of the 
net profits of the JV. Auxico will also have an option to purchase 50% of the 
profit interest of Consultoria (or 15% of its 30%) at a price to be agreed 
upon. 
 
Auxico intends to send its geologists to Brazil in the coming weeks to conduct 
technical due diligence on the Palha Property. 
 
PALHA PROPERTY 
 
The Palha Property covers an area of 10,000 acres in the state of Pará in 
northern Brazil. All of the previous work, including 27 boreholes and 25 
exploration pits, appears to have been conducted over extensive river systems, 
and samples were extracted from what is believed to be along the river banks. 
One assay is reported to have returned a grade of 42% tantalum. 
 
Applications of Niobium and Tantalum:  Niobium is used in high-grade structural 
steel, while niobium superalloys are used for jet engines and heat resistant 
equipment. Tantalum is used to manufacture batteries for electric cars, as well 
as almost every kind of electronic device, including cell phones and computers. 
Both metals are on the list of minerals deemed critical for the US national 
security and economy. Tantalum, always together with the chemically similar 
niobium, occurs in the mineral groups tantalite, columbite and coltan (a mix of 
columbite and tantalite, though not recognized as a separate mineral species). 
 
Applications of Scandium: One of scandium's most important uses is for 
preparing aluminum-scandium alloys, which are used in the aerospace industry 
during the manufacturing of aircraft. When added in a trace amount (about 0.1% 
to 0.5%) to aluminum, it increases the strength of aluminum manifold, without 
increasing its weight. Its use in the aerospace industry though, is restricted 
to specialized aircraft (like the Russian military aircraft MiG-21, MiG-29, 
etc.), owing to the high cost of this element. Another key use of this alloy is 
in the manufacturing of various sports equipment, like baseball bats, lacrosse 
sticks, and bikes. All these items have a common requirement: a high 
performance material, which is light in weight, rust resistant, and which has a 
high melting point. Aluminum-scandium alloys satisfy all of these requirements. 
 
Disclaimer: The samples described above were selected under the supervision of 
the property owner. These samples were shipped to a laboratory in Quebec 
selected by Auxico. It is the opinion of the Qualified Person that an 
independent grid 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. 
 
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. 
 
ON BEHALF OF THE BOARD OF DIRECTORS 
 
« signed » 
 
Mark Billings 
 
President, Auxico Resources Canada Inc. 
 
mb@auxicoresources.com 
 
Cell: +1 514 296 1641 
 
The Directors of the Company accept responsibility for the contents of this 
announcement. 
 
For further information, please contact: 
 
Auxico Resources Canada Inc. 
Mark Billings, President                                   + 1 514 296 1641 
 www.auxicoresources.com/                                  mb@auxicoresources.com 
 
NEX Exchange Growth Market Corporate Adviser: 
Peterhouse Capital Limited 
Guy Miller and Fungai Ndoro                                +44 (0)20 7469 0930 
 
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 and Mexico. 
 
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." 
 
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. 
 
 
 
END 
 

(END) Dow Jones Newswires

February 07, 2019 09:29 ET (14:29 GMT)