+55 (31) 2538-8400 / institucional@mineracaoserraverde.com.br

Project

Serra Verde Rare Earth Project

Overview

Tier I Asset: Large Scale, Long Life, Low Cost

Mineração Serra Verde (“MSV” or “Serra Verde”) is an advanced development stage project located in central Brazil, a mining friendly jurisdiction. The size and grade of the resource and the deposit’s ionic clay geology and freely liberated mineralization, which is analogous to the well-known heavy rare earth southern Chinese deposits, provide for cheaper, simpler processing and lower capex versus peers.

Project Highlights

World’s largest ionic clay rare earth deposit

  • Large and growing NI 43-101 resource of 911Mt @ 0.12% TREO
  • Rich in critical rare earths – top 4 REE (Pr, Nd, Tb and Dy) are in high demand and represent >70% of project revenues
  • Rare earth grades 2x-5x higher than southern China deposits

Low capex & opex drive project returns

  • Ionic clay geology analogous to that of the market dominating southern China producers
  • Fully liberated rare earth mineralization allows for low capex, low operating costs, simple open pit mining using trucks and shovels, and inexpensive processing using a straightforward, proven flowsheet
  • Existing access to water, power and transport infrastructure
  • Modular and phased production approach mitigates project risk profile and enables long term flexibility in project production and product mix

Significant exploration and upsides

  • 100% mineral title ownership over +70,000 hectares
  • Less than 15% of land package explored to date; existing resource remains open at depth
  • Potential to increase grade & recoveries
  • Lower opex & capex
  • Optimize project production profile and product mix

Favorable anticipated industry dynamics

  • Serra Verde positioned to be the first non-Chinese supplier of critical and heavy rare earths
  • Attractive demand dynamics with compelling price forecast environment
  • Growing demand driven by next generation technologies, such as clean energy and high value electronics

Well-credentialed, proven management team

  • Management has 155 years combined mining industry experience, with directly relevant experience in guiding Brazilian mining projects through permitting, development, construction and into operation
  • Team delivered Preliminary Economic Assessment (“PEA”) in September 2013 which confirmed a substantial project NPV
  • Team delivered Pre-Feasibility Study (“PFS”) in October 2014 confirming the process flow and successful concentrate and separated elements results
  • Team delivered an updated Pre-Feasibility Study (“PFS”), NI 43-101 compliant, in February 2015, increasing Measured and Indicated resources and recovery rates
  • The Brazilian National Nuclear Regulatory Agency (“Comissão Nacional de Energia Nuclear – CNEN”) classified MSV project as level 2 for radioprotection plan in May 2015
  • MSV’s Preliminary Radiation Protection Plan approved by the Brazilian National Nuclear Regulatory Agency (“Comissão Nacional de Energia Nuclear – CNEN”) in June 2015
  • Unparalleled board depth – Eric Noyres (former President of Lynas Corporation Ltd.) and Luciano Borges (former National Secretary of Mines & Metallurgy in Brazil) are closely involved in project development
  • Advised by renowned rare earth industry experts and Qualified Persons: John Goode, Tony Mariano Sr. & Jr., Don Hains, Michael Nees and Kaz Machida.
  • Project consultants include Ansto, Ausenco, Carmot Srategic Group, Fairlead Advisors, KCA, RPA, SRK and SQN Advisors.

Supportive jurisdiction and community relationships

  • Permitting advanced in close collaboration with local community, as well as state and federal regulators and agencies
  • Ionic clay extraction produces minimal Th & U (no radioactive storage issues)

Assets

Serra Verde Rare Earth Project A Unique Project

Serra Verde is a World Class Deposit…

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  • NI 43-101 resource of 911Mt @ 0.12% TREO1
    • 58,000 meters drilled to date
    • 911Mt contained rare earths
    • > 50 year potential mine life
  • One of world’s highest percentage of heavy and critical rare earths projects at 60% TREOs
  • 7 distinct high value rare earths to account for 83% of revenue
  • Resource open at depth with grades increasing verified through longer drill holes

Serra Verde has Excellent Infrastructure and a Qualified Labor Pool…

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  • 25km west of Minaçu (population: 32k), Goiás, Brazil
  • Located in an established mining region – Minaçu is home to an existing operating mine, with qualified labor pool
  • Highly developed infrastructure throughout the State of Goiás
  • Excellent access to roads, water, power within 40km of site

…And a Leader in High Value Rare Earths

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…And Significant Exploration Upside

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Source: Company filings. Information on other projects is derived from public documents and may not reflect the most recently released public information.
1. Cut-off grade at 0.10%; Serra Verde RPA Report. 2. HREEs include Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu and Y; the US DOE defines Nd, Eu, Tb, Dy, Y as ‘critical,’ while Pr is projected to be in short supply 3. Margins based on standardized REE prices 4. Capex ex. contingency / HREE + Nd-Pr avg. prod.

Market

Exposure to Rare Earth Demand Growth

Global Rare Earth Supply is Dominated by China,
Especially for Critical and Heavy Rare Earths…

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  • China represents >90% of total rare earth supply
    • Small mines in Southern China are the source of substantially all heavy rare earth production
  • Non-Chinese supply sources are dominated by non-critical and/or light rare earth minerals with high costs
  • Molycorp’s Mountain Pass mine in California – no longer operating
  • Lynas’ Mount Weld mine in Australia

…Demand for Rare Earths is Supported by Next
Generation Growth in End Market Products

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Source: U.S. International Trade Commission, U.S. Geological Survey, CRS, Wall Street Research, Congressional Research Service, IMCOA 2011

market

Process

Serra Verde Operational Flow Description and Development

 

 

plant

Test work results to date indicate that Serra Verde’s main saprolite mineral type is amenable to heap leaching for the recovery of REEs (rare earth elements).
Leach grade material will be delivered to primary crushing feed bins using 40 t haul trucks. Further, overland conveyors will be used to deliver material from the mine pits to the crushing area. Ore is crushed, agglomerated, stacked, and then leached to recover REE. The ore will be crushed in two stages using primary and secondary sizers in open circuit. Crushed ore will be agglomerated in drums and then conveyed to the heap leach area. Agglomerated ore will be stacked at 3 m of height to be heap leached using sodium chloride solution at 58 g/L and pH 2. When the leaching process is completed, ore will be rinsed with acidified clear water, obtained from the pregnant leach solution (PLS) using nano filtration (NF) and reverse osmosis (RO).  After washing, the spent ore is reclaimed from the leach pad using a front-end loader. Reclaimed material will be transferred to the tailings facility using haul trucks.
PLS from the heaps will be filtered and pre-concentrated in an NF-RO plant which will generate wash water for the heap as well as upgrade the solution strength. The concentrated solution will be treated in a hydrometallurgical plant to remove impurities and precipitate an intermediate mixed rare earth carbonate.

Environment

Serra Verde Environmental Development

MSV takes environment issues very seriously and is a priority for its development.

All action, procedures, reports and licensing requirements are followed and delivered in accordance with specific Environmental Laws and Rules.

MSV works with high qualified Environmental consultants to assure the best results in all its actions.

Permitting advances in close collaboration with local community, as well as state and federal regulators and agencies

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