Max Resource Reports High-Grade Iron Ore (Fe) Results from Florália Hematite DSO Project in Minas Gerais, Brazil
Rhea-AI Summary
Max Resource Corp. (MXROF) has announced successful iron ore (Fe) test results from its Florália Hematite DSO Project in Brazil. Key highlights include high-grade iron ore results ranging from 59.3% to 69.5% Fe with recovery rates between 67% and 81% across six bedrock samples.
The project benefits from strategic advantages including proximity to infrastructure, with a 15km road to rail loading terminal and existing connections to established DSO buyers Vale (16km NW) and ArcelorMittal (26km NE).
The company's subsidiary, Max Brazil Iron, has received In-Principle Advice from ASX and plans to list through an IPO. The offering aims to raise between AUD $6-10 million through 30-50 million shares at AUD $0.20 per share, with proceeds directed towards advancing the Florália DSO Project.
Positive
- High-grade iron ore results up to 69.5% Fe, well above the 62% Fe benchmark
- Strong recovery rates between 67-81%
- Strategic location with existing infrastructure and proximity to major buyers
- Successful third tranche private placement raising AUD $2.73 million
- 99.55% shareholder approval for Max Brazil IPO
Negative
- Project still at early exploration stage with no defined mineral resource
- XRF analysis results pending confirmation through chemical analysis
- IPO completion subject to regulatory approvals and market conditions
News Market Reaction – MXROF
On the day this news was published, MXROF declined 1.88%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Vancouver, British Columbia--(Newsfile Corp. - April 22, 2025) - MAX RESOURCE CORP. (TSXV: MAX) (OTC Pink: MXROF) (FSE: M1D2) ("Max" or the "Company") is pleased to report successful iron ore (Fe) and recovery results from dry magnetic test work for its Florália Hematite DSO Project ("Florália DSO") located 67 km east of Belo Horizonte, Minas Gerais, Brazil.
Based on the positive results from the preliminary dry magnetic tests (refer to NR dated March 30, 2025), Max collected 6 bedrock 80kg samples (FL-001 to 006) from across the Florália DSO property. Each sample crushed in 3 fractions 12mm, 6mm and 2mm for dry magnetic test work at Inbras Laboratory Brazil (manufacturer of dry magnetic units). Sample (FL-005) was split into two equal portions as an internal check (refer to Figures 1 & 3, Table 1).
Highlights
FL-001:
FL-002:
FL-003:
FL-004:
FL-005:
FL-006:
Figure 1: Florália dry magnetic test work, XRF and recovery results
Max cautions investor that handheld XRF analysis is not chemical analysis. All samples have been sent to ALS Laboratories for follow up chemical analysis. The Max Resource technical team feel iron ore is a relatively homogenous material and XRF analysis should be an applicable initial analysis method.
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Max cautions investors the potential quantity and grade of the iron ore is conceptual in nature, and further cautions there has been insufficient exploration to define a mineral resource and Max is uncertain if further exploration will result in the target being delineated as a mineral resource. Hematite mineralization tonnage potential estimation is based on in situ high-grade outcrops and interpreted and modelled magnetic anomalies. Density value used for the estimate is 2.8t/m³. Hematite sample grades range between 55
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"The dry magnetic test work was a great success delivering high-grade iron ore (Fe) results well above the benchmark of
"Max Iron Brazil has In-Principle Advice from ASX, plans on listing on the official ASX list, and to secure funding for the next stage of exploration and development for the Floralia DSO Project," he concluded.
Florália DSO holds strategic advantages over other DSO projects due to its location and existing infrastructure including, existing 15 km road to rail loading terminal connecting to multiple steel mills and shipping ports. In addition, existing roads to established DSO buyers Vale (16 km NW) and ArcelorMittal (26 km NE).
Figure 2: Florália location and infrastructure map
Florália DSO, existing 15 km road SE to railway terminal: existing roads to established DSO buyers Vale (16 km NW) and ArcelorMittal (26 km NE). Local mining infrastructure; railway networks, haul roads, mining services and personnel
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Dry Magnetic Test Work Method
Each sample was split into 3 sub-samples and crushed yielding a 12mm, 6mm and 2mm sub-sample, which were subsequently dried to an approximate moisture content of
The 1400 Gauss concentrates ran
In addition, all but two of the 21 splits returned concentrate recoveries above
Table 1. Florália dry magnetic test work, XRF and recovery results
Max cautions investor that handheld XRF analysis is not chemical analysis. All samples have been sent to ALS Laboratories for follow up chemical analysis. The Max Resource technical team feel iron ore is a relatively homogenous material and XRF analysis should be an applicable initial analysis method.
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Figure 3: Florália dry magnetic sample locations
Florália channel geochemistry, logistics, diamond and auger drill hole locations
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Quality Assurance
Chemical analysis was performed at ALS Laboratories. Metal Oxides are determined using XRF analysis. Fusion disks are made with pulped samples and the addition of a borate-based flux. Analysis at ALS is for a 24-element suite. FeO is determined using titration and LOI using loss determination by thermogravimetric analysis at 1000°C.
Max did not insert standards or blanks in the assay stream and is relying on ALS's lab QA/QC. The ALS lab inserts its own standards at set frequencies and monitors the precision of the XRF analysis. These results reported well within the specified 2 standard deviations of the mean grades for the main elements.
Proposed IPO of Max Brazil Iron Ltd. ("Max Brazil") to the Official List of the ASX
Further to the Company's news releases on December 12, 2024, January 2, 2025, January 7, 2025, January 9, 2025, January 20, 2025, and March 30, 2025, Max Brazil has closed the third tranche of its non-brokered private placement for a new aggregate amount of 27,300,000 ordinary shares in the capital of Max Brazil (the "Ordinary Shares") at a price of AUD
At the special meeting held on February 26, 2025, shareholders of the Company approved an ordinary resolution approving the undertaking of an initial public offering by the Company's majority owned subsidiary, Max Brazil. There was overwhelming support with
Max Iron Brazil has received In-Principle Advice on suitability from ASX Limited (the "ASX") to advance plans for admission to the official list of the Australian Securities Exchange. Max Brazil plans to lodge a Prospectus with the Australian Securities and Investments Commission in Q2 2025. ASX confirmed the ticker code "MAX" has been reserved for Max Brazil.
Max Brazil plans to complete an initial public offering of a minimum of 30,000,000 Ordinary Shares in the capital of Max Brazil (the "Ordinary Shares") at a price of AUD
The net proceeds of the Offering to be used, among other things, for the advancement of the Florália DSO Project, and for general working capital purposes.
Max Brazil will be subject to applicable Australian securities legislation and the rules and regulations of the ASX. There is no guarantee that the proposed IPO or listing of Max Brazil on the ASX will be completed on the terms set out in this announcement or at all. Closing of the IPO is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals.
Sierra Azul Copper-Silver Project Background
The Company's wholly-owned Sierra Azul Project sits along the Colombian portion of the world's largest producing copper belt (Andean belt), with world-class infrastructure and the presence of global majors (Glencore and Chevron).
Max has an Earn-In Agreement ("EIA") with Freeport-McMoRan Exploration Corporation ("Freeport"), a wholly- owned affiliate of Freeport-McMoRan Inc. (NYSE: FCX) relating to the Sierra Azul Project. Under the terms of the EIA, Freeport has been granted a two-stage option to acquire up to an
Sierra Azul comprises three districts: AM, Conejo and URU. Collectively the three contiguous districts stretch over 120 km in NNE/SSW direction (refer to Figure 4). Max Resource's land tenure at Sierra Azul includes 188 km² of mining concessions and 1,141 km² of mineral concession applications.
Figure 4: Sierra Azul Copper Silver Project comprises three districts: AM, Conejo and URU 
Collectively the three contiguous Districts stretch over 120 km in NNE/SSW direction
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AM-13: Exploration Target Increased to 1,500m by 100m
- Copper-silver mineralization identified over 1,500m of strike and open ended
- New composite channel assay results include:
1.6% Copper & 6 g/t Silver over 55.0m (CS11)1.6% Copper & 7 g/t Silver over 49.0m (CS08)1.0% Copper & 6 g/t Silver over 26.0m (CS01)
- The 100m wide mineralized body rises over 300m in elevation between El Cedro and Mapurito valleys suggesting significant depth potential
- Manto-style mineralization and alteration, similar to deposits in the Tocopilla - Taltal region of northern Chile, where a mineralized corridor extends well over 100-km and hosts several economic deposits including Mantos Blancos estimated to contain 500mt at
1% Copper (Reference material on the Mantos Blancos deposit available here) Max cautions investors copper-silver mineralization at Mantos Blancos is not necessarily indicative of similar mineralization at Sierra Azul.
AM-15: Discovery of New Manto Style Target Proximal to AM-13
- The new AM-15 discovery is located approximately 1,000m northwest of AM-13
- Early work suggests a large target footprint with five mineralized outcrops already identified over a 100m by 300m and open in all directions
- High priority target based on potential size, grade and proximity to AM-13
Figure 5: AM-13 & AM-15 Target Zone
Image showing extended footprint of AM-13 in relation to the AM-15 discovery
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Freeport McMoRan Funded US
The 2025 exploration program at the Sierra Azul has three objectives: Drill Target Development, District Scale Exploration and Basin Scale Analysis.
Drill Target Development
The Drill Target Development program will focus exploration on priority targets located in all three districts of the Sierra Azul Project: AM, Conejo and URU. The goal of the program is to prepare the selected targets for drilling. The work program is well under way and includes detailed geological mapping and soil sampling as well as planned ground geophysical surveys and detailed structural analysis.
District Scale Exploration
The District Scale Exploration Program commenced in 2024 and is designed to systematically evaluate the entire Sierra Azul Project area with the goal of identifying additional priority targets for follow-up. The program has two components: soil and stream sediment sampling.
The district-scale soil sampling program comprises a total of 3,646 samples collected at 50m intervals along lines spaced 2,000m apart. The sampling campaign commenced in 2024 and approximately
Qualified Person
The Company's disclosure of a technical or scientific nature in this news release was reviewed and approved by Tim Henneberry, P.Geo (British Columbia), a member of the Max Resource advisory board, who serves as a qualified person under the definition of National Instrument 43-101.
For more information visit on Max Resource: https://www.maxresource.com/
For more information visit on Max Brazil: https://maxironbrazil.com/
For additional information contact:
Tim McNulty E: info@maxresource.com T: (604) 290-8100
Rahim Lakha E. rahim@bluesailcapital.com
Brett Matich T: (604) 484 1230
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Except for statements of historic fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law.
Forward-Looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-Looking statements are based on the opinions and estimates at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements including, but not limited to delays or uncertainties with regulatory approvals, including that of the TSXV. There are uncertainties inherent in forward-looking information, including factors beyond the Company's control. There are no assurances that the commercialization plans for Max Resources Corp. described in this news release will come into effect on the terms or time frame described herein.
The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. Additional information identifying risks and uncertainties that could affect financial results is contained in the Company's filings with Canadian securities regulators, which filings are available at www.sedarplus.ca.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/249326
FAQ
What are the iron ore grade results from Max Resource's (MXROF) Florália Project?
How much funding is Max Resource (MXROF) seeking to raise through the Max Brazil IPO?
What infrastructure advantages does MXROF's Florália Project have?
When is Max Brazil's planned ASX listing expected to occur?
