Auxico Resources Canada Inc. Signs a Letter of Intent for the Exploitation and Trading of Tantalum and Iridium in Ivory Coast
MONTREAL, April 20, 2021 - Auxico Resources Canada Inc. (CSE: AUAG) is pleased to announce that it has signed a letter of intent ("LOI") to finance the production and export of high-grade tantalum and iridium ore from an 800-hectare property located 400 metres from a deep sea port, in the sub-prefecture of Bouandougou, department of Mankono, Ivory Coast. Samples from the property were recently analyzed by Coalia Research Institute in Thetford Mines, Quebec. Test results yielded a grade of 59.58% tantalum (Ta) per metric tonne, along with 1.7 kg of iridium (Ir) per metric tonne, or approximately 53 ounces of iridium per metric tonne. The price of tantalum is US$150,000 per tonne, and the price of iridium is US$6,400 per ounce.
The results of the first sample are presented in the table below:
| Ta2O5 | Nb 2O5 | Fe2O3 | Mn O | TiO2 | SiO2 | Al2O3 | MgO | CaO | ZrO2 | Ir* | HfO2 | UO2 | SnO2 | ZnO | PbO |
| % | % | % | % | % | % | % | % | % | % | % | % | % | % | % | % |
| 59.8 | 20.41 | 10.87 | 5.21 | 1.00 | 0.94 | 0.74 | 0.28 | 0.21 | 0.18 | 0.17 | 0.15 | 0.07 | 0.07 | 0.04 | 0.03 |
* With the exception of iridium, the above sample results were provided with the use of XRF (X-ray fluorescence) by Coalia, which subsequently retested the sample with the use of inductively coupled plasma, or ICP. The Company is currently undertaking metallurgical testing of the samples with Central America Nickel Inc. in order to extract iridium from the coltan ore.
Iridium is a silver-white transition metal of the platinum group, and one of the densest and rarest of Earth's natural elements. It is the most corrosion-resistant metal, even at temperatures of 2000 °C. Given these properties, iridium is used as a hardening agent for platinum alloys. It is also employed in high-performance spark plugs, crucibles for recrystallization of semiconductors at high temperatures, and electrodes for the production of chlorine in the chloralkali process. Tantalum belongs to a class of metals known as refractory metals, which are defined by their strong resistance to heat and wear. Tantalum is used in the electronics industry for capacitors and high power resistors. When combined with other metals, it can produce alloys with enhanced strength, ductility and corrosion resistance.
The LOI was signed between Auxico and the companies La Société Minière pour la Côte d'Ivoire SA ("Somci") and Clean-T. Under the terms of the LOI, Auxico has 60 days to conduct due diligence, after which the parties agree to enter into a joint venture ("JV"). The parties agreed that under the terms of the JC, Auxico will have a 63% share of the net profits of the JV for committing 100% of the capital required for the initial satellite interpretation study which will be conducted in order to target potential areas of interest in the property, as well as for the equipment required for the concentration of ore and transportation of concentrates from the property. Somci and Clean-T will retain 27% of the net profits of the JV, while the 10% will be allocated for fees defined by the state mining code. Auxico will have the exclusive marketing rights for all metals emanating from the property.
Disclaimer: The samples described above were selected under the supervision of one of the property owners, SOMCI. These samples were shipped to a laboratory at Thetford Mines, Quebec, selected by Auxico. It is the opinion of the Qualified Person that an independent site visit and 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 which can only be established following Due Diligence by Auxico's QP.
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. The QP advises the reader to pay particular attention to the above disclaimer. Due to Covid 19 travel restrictions it is impractical for the QP to visit the property at this time.
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, Brazil, Mexico and the Democratic Republic of the Congo.
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."
ON BEHALF OF THE BOARD OF DIRECTORS
| « signed » | « signed » |
| Pierre Gauthier | Mark Billings |
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.
SOURCE Auxico Resources Canada Inc.
Contact
Pierre Gauthier, CEO, Auxico Resources Canada Inc., pg@auxicoresources.com, Cell: +1 514 299 0881; Mark Billings, President, Auxico Resources Canada Inc., mb@auxicoresources.com, Cell: +1 514 296 1641