Superior Product Possible
In the near future, the Floralia iron ore project of Canadian Max Resource (TSXV MAX / FSE M1D2) is set to be listed on the Australian stock exchange (Max Iron Brazil). Work on the property in the Brazilian state of Minas Gerais, which leads in iron ore and steel production in Brazil, has already begun some time ago. Now Max can report further high-grade test results!
The company has so far taken 174 channel samples from a banded iron formation (BIF) on the DSO (Direct Shipping Ore) project, of which 131 showed high-grade iron contents of 50 to 61%! The highlight was a sample with even 64.7% Fe. Another plus point of the Floralia material is the very low contamination with phosphorus. Phosphorus is extremely harmful in steel, so the low initial values of 0.01 to 0.05% are of great advantage.
Florália Channel Geochemistry, Logistics, Auger and Diamond Drill Hole Locations; Source: Max Resource
Bulk Sample Material Can Be Easily Upgraded
Furthermore, dry magnetization tests of three bulk samples (200 kg), coarsely crushed (6%. Typical next-stage magnetic intensity tests are underway to further increase the Fe values.
Dry magnetic bulk samples (200 kg) at locations FL-001, FL-002 and FL-003; Source: Max Resource
In 2024, Max conducted an initial exploration program on Floralia, which immediately led the company’s technical team to increase the geological target for the Floralia DSO from 8 to 12 million tons at 58% Fe to 50 to 70 million tons at 55 to 61% Fe. (Such an exploration target is always only conceptual in nature and does not correspond in any way to an official resource estimate.) Preliminary results of the first drilling program that Max has conducted on the project so far are now imminent. This year, 800 meters of diamond core drilling and 800 meters of auger drilling were carried out, which are now nearing completion.
Floralia Advantage
As Max CEO Brett Matich explains, the channel samples confirm the occurrence of high-grade iron ore (DSO) at Floralia, and the tests on the bulk samples show that the iron content can be easily increased through a magnetic drum circuit. Due to this success, Mr. Matich continues, Floralia could potentially deliver a superior product to domestic and international customers.
He also pointed out that Max Iron Brazil has now received a principal recommendation from the ASX, the Australian Stock Exchange, for the planned inclusion in the official ASX list. This is an important step forward on the way to the IPO of the iron ore business, as the stock market listing is intended to secure financing for the next exploration and development phase of the Floralia DSO project.
We are already eagerly awaiting the IPO, as Max Iron Brazil’s Floralia DSO project has additional advantages over other DSO projects in Minas Gerais. Among other things, it is strategically connected by roads to an existing rail loading terminal 20 kilometers to the southeast. And the rail network is connected to numerous steel mills and ports. Moreover, the Floralia DSO project is connected via existing roads to potential DSO customers, including Vale just 20 kilometers northwest and Arcelor Mittal 30 kilometers east. This is crucial in the iron ore business, as transportation costs represent a significant cost factor.
