Victoria Mining Corporation

Project Location: DOM JOAQUIM, MINAS GERAIS, BRAZIL

VMC’s blue quartzite project in the state of Minas Gerais has received an ‘Environmental Operating License’ and has applied for a ‘Mineral Production License’. The Mineral Production License is expected imminently (January 2020) and proceeds with standard documentation from the Environmental License. VMC’s mine contractor will begin producing quartzite blocks on a 2 Ha section of VMC’s 600 Ha titled property. Production for the first full month of production is expected to be between 20 and 50 cubic meters and will rise to 100 cubic meters/month within 3 months (targeting 200 cubic meters/month within 6 months).

A quartzite block produced 30 km North of VMC’s quarry is pictured in Figure 1. This material has been selling at prices in the range of $2,000 USD per cubic meter (having a $400 USD all-in extraction cost) and this sale price has recently been increasing.

VMC’s material is expected to contain only blue and white tones in the finished blocks (absent black streaks evidenced here which diminishes value and material exclusivity). VMC’s material type contains very desirable colouration and is absent tones considered to be impurities, and samples have attracted significant buyer demand.

It is VMC’s intention to open additional quarries on the same mine claim in the future. Each quarry will require further license applications to ANM. Additional quarry start-up times will be subject to ANM’s ability to issue licenses in a timely manner. The new law, together with ANM’s efforts to automate processing of license applications (undertaken in 2019), will make for a better and more efficient licensing environment.