Resouro touts first rare earths resource at global-scale Tiros project in Brazil

Resouro Strategic Metals (TSX-V: RSM; ASX: RAU), one of the newest companies to tap into the Brazilian rare earths market, has published a maiden resource of close to 2 billion tonnes for its Tiros project in Minas Gerais state. 

The resource estimate sits at 1.7 billion tonnes grading 3,900 parts per million (ppm) total rare earth oxides (TREO), containing 1,100 ppm magnet rare earth oxides (MREO), and 12% titanium dioxide, the company said on Thursday.

The Canadian junior, which kicked off trading on the ASX in June, said the estimate included a high-grade section of 120 million tonnes at 9,000 ppm TREO, containing 2,400 ppm MREO and 23% titanium.

Tiros’ measured and indicated portions of the resource comprise 1 billion tonnes at 4,050 ppm TREO containing 1,120 ppm MREO and 12% titanium.

The figures make the Tiros project “one of the largest undeveloped titanium and rare earth resources globally,” according to Resouro. 

“We consider that the average resource grades of 3,900 ppm TREO, 1,100 ppm MREO and 12% of TiO2 are well above average for this style of deposit,” CEO Chris Eager said. “We have defined a very substantial resource over just 7% of the land area of the project.”

More drilling

Instead of pursuing potential expansions at this stage, Resouro will now focus on infill drilling to support mine planning and feasibility studies. The Toronto-based firm aims to complete a preliminary economic assessment of Tiros by the end of the year.

Resouro holds, through its Brazilian subsidiary, a 90% interest in the project. The remaining 10% interest is held by RBM Consultoria Mineral Eireli, an unrelated third-party vendor.  

Shares in the company ended Thursday 13.4% higher in Sydney at A55¢ each. The stock closed 12.5% higher in Toronto at 45¢ each. That leaves Resouro with a market capitalization of $41.5 million.