Auxico Resources Canada Inc (CSE:AUAG, OTCQB:AUXIF) told investors the Environmental Impact Assessment (EIA) for its 100% controlled Minastyc property has received approval from the Colombian environmental authority, the Regional Autonomous Corporation of the Orinoquía (Corporinoquia).
The company noted that the mineral-rich Minastyc property in Puerto Carreño, Vichada, has been identified by the National Mining Agency as a project of national interest for Colombia, positioning the country as a major mining investment destination in Latin America.
The approval follows the grant of a small-scale mining permit by the National Mining Agency of Colombia and authorization of the company's work plan, which was announced in May 2022.
"The environmental approval of the Minastyc property is a significant step in the process of taking the project into production,” Auxico chairman Mark Billings said in a statement. “We appreciate the work done by Corporinoquia in their review process, as it validates and recognizes Auxico's high operational standards in Colombia, including the company's commitment to the Indigenous peoples and other residents of the region.”
Key milestone
Auxico noted that the EIA announcement is the culmination of a scientific process to identify aspects of the project that could be optimized and provide solutions allowing for a responsible mining operation. The approval is a key milestone towards allowing the company to move equipment on site, including heavy machinery for bulk sampling and a processing facility, it said, adding that it also enables it to advance its operation to the next phase and to complete the underlying licences and secondary permits necessary.
“As the Environmental Impact Assessment required for a Colombian mining licence application is now granted, the company is making consistent progress towards becoming a regional leader in the development and supply of critical minerals and other high-value resources,” Billings added. “Field work and sampling confirms that we have a robust mineral resource at Minastyc, including high-value metals, critical minerals, and rare earth surface discoveries, setting the platform for the next stage of growth for the company.”
Auxico said its goal is to produce and export rare-earth elements, transition metals and post-transition metals such as tin from the Minasty property. With critical minerals and rare earth elements hosted in monazite sands on the property, at surface, it said this makes for a very advantageous geological structure which would allow it to initiate sales and export near term, with a limited infrastructure requirement. With the granting of the EIA approval, Auxico can commence operations planning to put the Minastyc property into small-scale mining production to achieve a volume of up to 300 tonnes per month.
“The EIA approval validates that the company's operations are well-aligned with environmental standards, national interests, and the development of resources required for the energy transition,” Billings concluded.
The company said a full NI-43101 technical report for Minastyc can be found on its website.
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