Max Resources Corp. [TSXV: MAX; OTC Pink: MXROF; FSE: M1D2] provided an update in relation to the company’s news release dated November 4, 2024 that detailed spinning out its iron ore assets.
The company has added a wholly owned Australian entity, Max Iron Brazil Ltd. (Max Brazil) to hold the Florália Brazilian Assets, Mina Gerais State, within the existing Canadian and Brazilian holding entities. The company plans to seek listing on the ASX prior to a pre-listing financing directly into Max Brazil to fund the proposed transaction and to advance drilling.
Max Resource reports high-resolution drone magnetics at Florália has identified a large anomalous zone of surficial outcropping high-grade mineralization associated with hematite/itabirite type iron formation. The size of the anomalous area has far exceeded the approximate 160m by 160m historic open cut to around 1,500m by 1,000m based on the drone magnetics, field activities and 58 channel samples.
Max’s technical team has reviewed the new drone magnetics and channel sampling data and has significantly expanded the Florália hematite geological target from 8 to 12 million tons at 58% Fe to 50 to 70 million tonnes at 55% to 61% Fe, with an additional itabirite geological target of 130 to 170 million tonnes at 51% to 55% Fe.
Hematite mineralization tonnage potential estimation is based on in situ high-grade outcrops and interpreted and modelled magnetic anomalies. Density value used for the estimate is 2.8t/m³. Hematite sample grades range between 55-61%Fe. Itabirite mineralization tonnage potential estimation is based on in situ itabirite outcrop interpreted and modelled magnetic anomalies. Density value used for the estimate is 2.5t/m3.
Itabirite sample grades range between 51-55% Fe. The 58 channel samples were collected for chemical analysis from in situ outcrops in previously mined slopes of industrial materials.
The Florália Hematite project is located 70 km east of the city of Belo Horizonte, Minas Gerais, Brazil’s largest iron ore and steel producing State. In addition, iron ore buyers lie within 20 km of Florália, providing a local ready market requiring minimal transportation, upon successful exploration and development.
The processed geophysical data from the drone survey also indicates a large portion of the magnetic anomaly lies at depth below the surface expressions of high-grade hematite oxide mineralization. Analysis indicates a highly deformed structural geological environment that is fundamental to the increase in iron ore grades and tonnages, a consequence of secondary crystallization of hematite and the development of supergene enrichment. Additionally, the geophysical survey was also crucial in revealing the potential of a secondary body covered by soil in the northwest portion of the property. This zone was initially regarded as a minor occurrence; however, the magnetic signature and orientation recognizes it as extensions to the initial iron formation target.
The Magnetometric Geophysical survey utilized drones over the project area located in the Florália region of Santa Bárbara, Minas Gerais, Brazil, within the “Quadrilátero Ferrífero” region. The geophysical survey magnetometric maps were generated with multiples filters along with a 3D inversion that provided a high-resolution block model and isovalue surfaces from the interpreted source of the anomalies. This data has been fundamental in confirming the principal target area and the true potential of the Florália high-grade hematite project.
The channel sampling across road cuts is now complete with assays pending. Next step is auger and diamond drilling.
Max Resource is advancing the newly discovered district-scale wholly owned Sierra Azul Copper-Silver Project in Colombia.
The Sierra Azul Project sits along the Colombian portion of the world’s largest producing copper belt (Andean belt), with world-class infrastructure and the presence of global majors (Glencore and Chevron).
Max has an Earn-In Agreement (EIA) with Freeport-McMoRan Exploration Corp., a wholly owned affiliate of Freeport-McMoRan Inc. [NYSE: FCX] relating to the Sierra Azul Project. Under the terms of the EIA, Freeport has been granted a two-stage option to acquire up to an 80% ownership interest in the Sierra Azul Project by funding cumulative expenditures of C$50 million and making cash payments to Max of C$1.55 million. Max is the operator of the initial stage. The US$4.2 million 2024 exploration program for the Sierra Azul Project is funded by Freeport.
The company also owns the Florália Hematite Iron Ore Project, located 70 km SE of Belo Horizonte, Minas Gerais, Brazil’s largest iron ore producing state.
