Resource World Magazine

A P R I L / M A Y 2 0 1 7 www.resourceworld.com 29 MAXTECH VENTURES INC. [MVT-CSE; MTEHF-OTC; MIN-FSE] is a Canadian based diversified industries corporation currently focused on exploring for manganese in Brazil. They are aiming to accelerate their Brazilian exploration operations by producing high-grade manganese ore from surface colluvium and saprolite deposits within a year. Maxtech's property is in west-central Brazil and comprises an area of ~50,000 hectares and is located ~150 km east of Meridian's (formerly Cancana's) Rondonian manganese project 'BMC' (Brazil Manganese Corporation). BMC currently produces high-grade manganese oxide from surface colluvium, while simultaneously exploring for manganese enriched vein systems to support lon- ger-term production. According to Maxtech Senior Project Geologist, John Harper (who formerly worked in Rondonia), initial regional explora- tion indicates the BMC mineralized system extends to Maxtech's property: "It is the exact same rock, the same setting, the same structure and the same mineralization." Peter Wilson, Maxtech President and CEO, explains, "We can start producing within the next 8 to 12 months from surface weathered horizons. This will generate cash flow and garner the interest of producers while continuing to explore for deeper mineralization." Exploration started in October 2016, and the plan for 2017 includes prospecting and mapping, auger drilling, soil sampling, trenching, and ground and airborne geophysics. The two styles of mineralization are (1) manganese occurring as local cobbles and clasts within colluvium and saprolite hori- zons above weathered hyrothermal pyrolusite-bearing veins, and (2) the hydrothermal veins themselves. Initial property sampling indicates 50% Mn grade, which is considered 'super-high-grade' (battery grade). Maxtech is primarily focused on "green" end uses for man- ganese as a target market. The short term market in Brazil is as suppliers of manganese for fertilizer to support local agriculture, as Brazil accounts for 30% of the world's production of soybeans. Looking longer term, the target market will transition to man- ganese with lithiated manganese dioxide (LMD) re-chargeable batteries for use within hybrid vehicles and appliances etc. This would necessitate shipping to North America, Europe and China. The third market of interest is for use in manganese steel. This market is less attractive because there is less return for lower grade manganese, and the market is mostly exportive. The surface mining operations are comparable to sand and gravel operations: The process involves locating sub surface and surface cobble deposits, extracting the top meter of soil, field screening, washing, sorting for delivery at the mine site for fertilizer market. Maxtech's property is in an area largely agriculturally devel- oped with cattle and soy farms. As a result, prospecting often starts with talking to local farmers to negotiate agreement for access. according to Harper, "There are very few problems gain- ing access to the land because we agree on a rate per hectare disturbed…. in addition, within the government regulations we are taxed 3% of the value of net sales for manganese, half of which goes to the government, and the farmer gets the other half…so it is a mutually beneficial operation." The process to initiate mining in Brazil is faster and simpler than in North America. Maxtech's plan is to apply for a guia (a trial min- ing license) by the end of Q3 2017, which will allow the mining of 6,000 tonnes per guia while exploration is advanced. Once a proven resource is identified (ideally by the end of Q1 2018), an application for a full mining license (a six-month process) which will allow for extraction of manganese ore on an unlimited basis. The property is situated along the main north south national highway with barge service to the Atlantic via the port of Manus, electricity and water are readily available, as well as local labour force from the nearest town of Juina (~50,000 people). All these things contribute to the attractiveness of this locale for targeting areas for high-grade manganese exploration. According to Wilson, "The strategy is to become one of the larg- est manganese exploration landholders in Brazil. We are capturing a market that is growing and part of our strategy is to amass land areas with high-grade and high purity manganese not only in Brazil, but add to our acquisitions with global properties as well." n MINING Maxtech Ventures planning Brazil manganese production by Laura Barker Surface occurrences of super high-grade manganese mineralization at the Maxtech Ventures property in west-central Brazil. Photo courtesy Maxtech Ventures Inc.

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