What were Auxico Resources' main achievements in 2023?

Auxico Resources Canada Inc. (CSE: AUAG, OTCQB: AUXIF) achieved significant milestones in 2023. In the DRC, we successfully exported approximately 1,000 t of rare earth concentrates through a sales agency agreement with Central American Nickel; this positions both companies as key players in the global rare earth market. Looking ahead to 2024, our goal is to expand these exports. In Colombia, we secured the necessary environmental licenses and permits to enter into small-scale production, with a final export license in progress. 

How do you assess the current operating environment in the DRC? 

Currently, we engage in a process where miners pan concentrate on our property, which we verify for transparency purposes, and then we purchase the material from local miners and proceed to export it. The next phase of the project will include mechanizing processes with modest equipment like backhoe shovels to enhance ore extraction and the concentration of material. 

Our approach involves forming responsible collaborations that support the livelihood and development of local communities. We see the local miners as integral to our team, aiming to facilitate their earning potential alongside us.

Can you elaborate on your vertical integration strategy to navigate current capital markets? 

While selling concentrates is profitable, the real potential lies in processing and refining these minerals, constituting 80% of the industry's profit. Unlike traditional approaches, we have separated mining and processing, choosing to conduct the latter in Canada, particularly in Québec, pending certain government support. 

Our current strategy involves utilizing pan concentrates from artisanal miners in the DRC, yielding a remarkable 60% total rare earth oxide, and grades up to 16.92% neodymium and 4.12% praseodymium. These exceptionally high-grade monazite sand-hosted concessions and an efficient separation process with minimal capital and operating costs, position us as one of the most cost-effective operators in this space. Our goal is to create a high-value end-product through a strategic partnership between Canada on one side, where further processing and refining would take place, and Colombia and the DRC on the other side, as key supply sources. Looking ahead, we are exploring partnerships to establish critical mineral refining capabilities in Canada and other locations. This not only contributes to national security but also mitigates dependence on a single source, aligning with our commitment to solving supply chain vulnerabilities.

What makes Auxico Resources a compelling investment opportunity?

With increasing market demand, we plan to expand capacity at our DRC project, a move that would not demand significant capital. Our venture in Colombia also aligns with our strategic goals, as it is a fully-permitted operation that can launch with a modest capital investment. We have previously signed an offtake agreement with Cuex Metals for the sale of 3,600 t/y of commercial tin concentrates; while the initial small-scale permit allows for only 300 t of monthly production, this is a modest start, and achieving this milestone in the production of tin or tantalum concentrates allows for not only substantial and sustainable revenue generation, but also allows us to apply for an increase in capacity with the local mining agency. In summary, our near-term capital and resource investment will prioritize opportunities in the DRC and Colombia, while recognizing the longer-term potential in Brazil and our recently acquired Bolivian past-producing El Benton Mine.

Over the last four years, we have strategically identified suitable properties in the DRC and other countries for potential acquisition or joint venture, ensuring diversified material sources under the Company’s portfolio of mineral assets. Despite challenges in the North American market, we see potential for companies with unique propositions, and we consider ourselves one of them. Our licensed ultrasound technology is the result of collaboration with Canadian-based partners, Ph. and experts in sonochemistry; these innovative processes could allow us to extract maximum value from rare earth elements and other critical minerals. If we execute our plan effectively, shareholders can anticipate a favorable return, and we are committed to sharing our success with local partners in the DRC and beyond.