Max Resource Corp V.MAX

Points to ponder re DSO Project

[nopoo]

Jaguar wants to concentrate on gold exploration and mining.

The deal is very straight forward for them, there are no onerous conditions, no earn in, no back loading and no money to be raised by MAX to get the deal done.

Jag knows Brett has the experience to pull this off, important to them because Jaguar gets a hefty 3% NSR.

As for Florilia’s capex the best comparison is Fenix resources (ASX:FEN). You can read about Fenix, and other comparables here; https://aheadoftheherd.com/max-resource-two-world-class-exploration-projects-in-south-america-richard-mills/

There are a lot of small private mines in the area selling ore to the local steel mills. Being private, not pub.co’s, means self-financed.

Florilia will be contract mining. Meaning leasing the equipment used for mining, crushing and hauling.

Contractors will not run the operation so MAX will need its own office, some personnel etc but contracting a company from the area already set up to mine is the way forward, and there are several.

And that of course means a considerably lower capex than the usual pub.co route.

We will be doing exploration/ drilling, putting together a 43-101 resource, according to Brett that’s a cost MAX has already covered.

At the end of Q1 MAX had $4m, at the end of Q2 $5m.

Jaguar did another very similar deal w/ another Brazilian company, I’m researching the particulars, as well I’m looking at finding the number of small private mines in the area, be great to get details on at least some of them.

Florilia drilling could start as early as late Q4 2024, and I’m guessing CESAR exploration plans/ budget news in early August.

CZR Resources has sold its Robe Mesa Iron Ore Project. "CZR to receive $102m cash for its 85% interest in Robe Mesa, representing a substantial premium to CZR’s market capitalisation (~$47M). CZR is listed as a comparable in the link above.

$MAX #DSO #IronOre

Rick
Aheadoftheherd.com