Platinum group metals have emerged as the preferred minerals for some in the realm of renewable mining, and BBX Minerals (BBX) is actively pursuing these minerals in the renowned northern Brazilian mining region of Apuí.
Brazil is home to more than 90 different mineral commodities and stands as one of the globe’s largest niobium producers, second only to iron ore. Among other sought-after minerals are gold, kaolin, nickel, coal, and phosphates.
Perth-based BBX Minerals is harnessing the full potential of its two projects, Ema and Três Estados, nestled in the heart of Apuí, boosting the company’s chances of becoming a strategic supplier to the global market.
The company boasts a seasoned group of leading executives, spearheaded by CEO and Executive Director André Douchane, who holds more than 40 years of extensive experience in the North and South American mining sectors.
“The discovery of rare earth elements in this region of Brazil appears to have taken on a life of its own,” he said.
“It’s an incredibly exciting development and seems to be much larger than our initial expectations, and the timing is perfect…”
In a bid to be a part of the sustainable mining evolution, BBX is employing an approach known as ‘bioleaching,’ an environmentally friendly extraction method proven to be more cost-effective than smelting processes.
This process proves to be simpler and, hence more cost-efficient to operate and maintain compared to conventional methods, which require fewer specialists to manage intricate chemical plants.
Up to now, the company has garnered positive outcomes from preliminary pilot plant testing, underscoring the viability of the process.
Mr Douchane described this method as a “game changer” for the company.
Brazil’s mining industry and regulatory environment
Brazil is the fifth largest country in the world, the third largest in all of the Americas after the US and Canada, and it sits right at the top as one of the five largest mineral producers in the world.
IBRAM, the Brazilian Mining Association, is a private non-profit organisation responsible for 85 per cent of Brazil’s mineral production, and it boasts sustainable practices in line with the environment, social responsibility and governance (ESG).
Less than 50 per cent of Brazilian territory holding the potential for high-grade mineralisation has been geologically mapped to date, and the country is leading the charge against global climate emissions with renewable technologies.
In 2021, Brazil generated 85 per cent of its total electricity from renewable sources, and it has enabled vast hydroelectricity potential. This is paired with an estimated wind power potential of 30.8 GigaWatt (GW) and a solar potential of 45.3 GW forecast for 2031.
Furthermore, the revenue pulled in from the Brazilian mining industry is R$250 billion (A$78.7 billion) a year, with production rates in the billions of tonnes and spread across more than 7000 companies exploring the region.
Other ASX-listed companies mining the Brazilian landscape include Aguia Resources (AGR), Big River Gold (BRV), Centaurus Metals (CTM), and Meteronic Resources (MEI).
BBX projects
BBX’s two REE and PGM projects are located in the state of Amazonas, in Brazil, near the town of Apuí, which is 500 kilometres south of Manus, the capital of the Amazonas state.
The projects cover a total exploration area of 270.5 square kilometres, and drilling at Ema has hit a total of 2246 metres while drilling at Tres Estados has encompassed a total of 2273 metres to date.
This region grants BBX direct access to the trans-amazonian highway, a commercial airport and a river port, not the mention, the area is home to a highly favourable geological landscape, prospective for Garimpeiro artisanal mining.
To add to this, the area is vastly underexplored and BBX believes it holds a high potential to host precious metals discoveries.
Given the geophysical signature of the Apui region, it may very well host one of the largest concentrations of REEs in South America.
Ema project
The EMA REE project is 30 kilometres south of Apui and has easy access to gravel roads, with the area covering the mapped Colider group, a proterozoic volcanic sequence known for gold and base metal deposits.
The company conducted initial soil sampling at EMA, which successfully revealed the presence of high-grade total rare earth oxides (TREO), revealing what looks like an extensive gold-in-soil geochemical anomaly within a high magnetic trend.
In June, BBX disclosed it had identified 14 new priority targets within its Ema and Ema East prospects, and these were explored for ionic rare earth elements (iREE) following positive sampling data.
Meanwhile, in July, the company received assay results for 25 remaining drill holes from its 2017 and 2021 drilling activities and reported 21 holes with remarkable TREO values above 600 parts per million (ppm).
The company said the results were a small reflection of the REE potential at EMA and the adjacent Ema East tenement.
“These final diamond drill holes from the original Ema exploration program continue to show good values in the oxidised surface material over quite a large area,” Mr Douchane said.
“We are continuing to expand our auger drilling program in an effort to define an REE deposit as quickly as we can…samples are being sent to SGS for assay on a regular basis so that the results can be announced in a few weeks.”
Tres Estados project
The Tres Estados PGM project is BBX Minerals’ flagship project, which also overlaps the mapped Colider group and lies 60 kilometres southeast of Apui.
Tres Estados has a mineral resource estimate (MRE) of 725,230 ounces of combined platinum, palladium, iridium, rhodium and gold.
In May, BBX successfully executed an agreement with Brandt Meio Ambiente (Brandt) to conduct an environmental impact study as well as an environmental impact report for the area.
The study will address the project´s potential physical and social/community impacts and help to propose mitigating measures, which will then be handed to the Amazonian state to be filed with the State environmental authority, IPAAM.
BBX anticipates the study will last 12 months.
Meanwhile, in June BBX obtained impressive results from a bioleaching pilot plant test, which used a sample from its Três Estados project, and revealed a significant increase in gold and palladium compared with the untreated sample.
The test marks the company’s second bioleaching execution, following the securing of a product supply and IP agreement between BBX and Ecobiome.
The tests were analysed by ALS Metallurgy, which returned a combined total of 16.52 g/t of Palladium (Pd) and gold (Au).
Fresh tenements
In August, BBX applied for three exploration tenements in the Apui region, which were strategically selected under the pretence they could host massive muli-element mineralisation.
Furthermore, the company executed a purchase agreement to secure two additional exploration permits, which are currently underway, and the addition of these five tenements to BBX’s portfolio follows a 2023 upward trend of success.
Reconnaissance soil sampling and auger drilling have recently been conducted over the three new leases, which encompass a fresh space of more than 50,000 hectares (500 square kilometres).
Results included 12 metres of 606 parts per million (ppm) total rare earth oxides (TREO) from the surface, 12 metres at 714 ppm TREO from the surface and nine metres at 815 ppm TREO from the surface, including four metres at 930 ppm TREO from five metres.
Mr Douchane highlighted that these new discoveries are significant for the company. However, he emphasised that the geological team’s primary focus remains on BBX’s Ema discovery, where higher-grade intercepts have been observed.
“BBX has allocated nearly 90 per cent of its assets toward developing a JORC resource at Ema – hopefully by the first quarter of 2024,” he said.
“Work also continues on the PGM bioleaching process where pilot plant testing has progressed much faster than we thought, we expect to publish a full report in the next several weeks.”
Investor takeaway
Brazil has a strong geological potential given its considerable land area and the large quantities of mineral reserves it beholds, in comparison to other leading countries.
When combining BBX’s total auger results across Apui, soil sampling outcomes, and the identification of a distinct radiometric ternary signature, there exists the potential for the identification of a world-class REE deposit.
With more land now than ever, BBX is prepared to indulge in the full potential of its resources, with it ideally based to find exactly what is looking for in the REE hotspot of South America.
BBX encompasses a strong and active board, which has shown its readiness to execute exploration, financial, and sustainable ESG mining in Brazil.
The company holds more than $6 million in funding to carry out the rest of its REE strategy.