Over the last 12 months, Auxico has completed a series of metallurgical tests using the ultrasound assisted extraction process (“UAEx”) for mineral extraction, for which the company signed a technology license agreement earlier this year. The tests showed that the UAEx process is very efficient on high-value rare earth samples, achieving 80%+ recoveries of selected rare earth elements over a two-hour long leaching time.

The UAEx process is a sustainable metallurgical process for the refining of critical minerals using ultrasound technology. The laboratory results demonstrate that, when combined with certain acids and used at various frequencies, this ultrasound process breaks up the ore into fine particles in a more accelerated time over conventional methods. This reduces the cycle times significantly for the leaching of ores, leading to lower operating and capital costs.

Auxico previously acquired mineral rights and surface rights to the Minastyc Property located in the municipality of Puerto Carreño, department of Vichada, Colombia. Auxico made a discovery of high-value rare earth ore on the property, with a total rare earth content of 56.87% in concentrates, as well as an additional discovery at a distance of 1.6 kilometers from the initial discovery (total rare earth content of 55.03% in concentrates), confirming the presence of a host of rare earth minerals along this mineralized zone.

Colombia’s competitive free-trade regime was established to promote industrial processing of goods and services primarily for export, and is regulated under a special customs, exchange, and fiscal regime offering various benefits to businesses. The Santa Marta free-trade zone, one of 12 free-trade zones in the country, is located near the port of Santa Marta on the Caribbean Sea, in the northern Colombian department of Magdalena. The port transports the third highest bulk volume in Colombia. The Zona Franca Tayrona industrial park is located within the free-trade zone and 12 kilometers from the port, and has excellent access to roads, including a railway line that connects the port to the interior of Colombia.

Grant of Stock Options

Auxico also announced that it granted 450,000 stock options to consultants to the company. These options have a strike price of $1.39, no vesting period and an expiry date of November 24, 2026.

Subsequent to an ongoing trenching program, the samples from the tin-tantalum target area are the results of pan concentration and screening. Samples were sent to Canada and analyzed by Coalia Research Institute in Thetford Mines.

Latest results on three selected samples from the tin-tantalum area, as well as two samples from the same area that were previously announced by Auxico in May of this year.

Of particular interest is the scandium content in the tin-tantalum area that averages over 3.6 kilograms of scandium oxide per ton. When combined with aluminum, scandium oxide makes alloys lighter and stronger and can significantly reduce the weight of cars, aircrafts and ships, helping reduce costs, increasing range, and reducing emissions. Tantalum is widely used in every kind of electronic device, such as phones, computers, automotive electronics and cameras.  Tantalum alloys can be extremely strong and have been used for turbine blades, rocket nozzles and nose caps for supersonic aircrafts.

The current sampling program is ongoing for both the tin-tantalum area and the rare earth area of the property. Pits are being excavated with the use of a backhoe as the mineralization has been identified at a depth of 3 meters. The company will be conducting metallurgical testing using the ultrasound extraction process (UAEx) on these samples.

Auxico also notified shareholders it had granted to a consultant to the company 500,000 stock options to purchase 500,000 common shares of Auxico at a strike price of $0.75 and expiring on December 21, 2021.

Above photos from the selected samples from the tin-tantalum target area (CNW Group/Auxico Resources Canada Inc.)