Bravo Mining (TSXV:BRVO) - Triple Growth in Resources Accelerates the Next Phases for Luanga Project

03/06/25 • 20 min

Interview with Luis Azevedo, Chairman & CEO of Bravo Mining Corp.

Our previous interview: https://www.cruxinvestor.com/posts/bravo-mining-tsxvbrvo-copper-gold-discovery-in-tier-1-pgm-project-in-brazil-5938

Recording date: 4th March 2025

Bravo Mining Corp represents an exciting opportunity for investors to gain exposure to the clean energy transition through a world-class platinum group metals (PGM), copper, and gold asset in the heart of Brazil's mining industry. The company's 100%-owned Luanga project, located in the renowned Carajás Mineral Province, has rapidly emerged as one of the largest and highest-grade palladium-platinum deposits globally, with a resource that has tripled to over 15 million ounces in just two years. Even more tantalizing is Luanga's copper-gold potential, with Bravo recently discovering bonanza-grade mineralization reminiscent of the IOCG deposits that built mining giants like Vale and Anglo American.

The Luanga project boasts a number of key attributes that enhance its economic and development potential. First and foremost is the sheer scale and grade of the PGM resource. At 15 million ounces and growing, Luanga already ranks among the largest PGM deposits in South America. Importantly, the resource starts right at surface, with 86% of the ounces sitting in the first 250 meters depth. This suggests a low-cost, open-pit operation could be in the offing. Furthermore, with less than 10% of this massive land package systematically explored, Luanga likely has much more to give.

While the PGM story alone would merit serious investor attention, the recent copper-gold discovery at Luanga makes Bravo impossible to ignore. Drill results like 11 meters of 14.5% copper and 3 g/t gold would be the envy of any major miner. The exploration model of choice for such mineralization are IOCG deposits, which are responsible for the bulk of Brazil's copper and gold production. These deposits are prized for their large size and polymetallic nature, often hosting economic quantities of copper, gold, silver, PGMs, and rare earths. With a land package of nearly 9,000 hectares, Bravo has an opportunity to consolidate a new copper-gold district in the heart of the Carajás.

To advance these exceptional assets, Bravo has assembled a topnotch technical team with an unparalleled track record of discovery and development in Brazil. CEO Luis Azevedo and his colleagues were involved in several major discoveries in the country, giving them keen insights into the local geology and what it takes to operate there.

Bravo also enjoys strong support from both the government and local community, a social license that is absolutely critical in today's mining industry. The Brazilian government has thrown its weight behind Luanga, placing it in an accelerated permitting program to bring the critical metals to market as quickly as possible.

Lastly, Bravo has the financial strength to deliver on its ambitious plans. With $25 million in the bank, the company is fully funded to expand the PGM resource, advance engineering studies, and aggressively explore the copper-gold discovery. Major shareholders like Blackrock, Tembo, Franklin, and RCF have thrown their support behind management, recognizing the immense value creation potential at Luanga. As the company hits key milestones and proves out the polymetallic nature of the project, investors can look forward to a steady stream of catalysts.

As the world electrifies and decarbonizes, metals like palladium, platinum, and copper will become ever more critical. Already, the Brazilian government is taking steps to secure its own supply of these vital elements. For investors, Bravo Mining offers a unique opportunity to participate in this generational megatrend, through an exceptional asset with a world-class team behind it. With drills turning, permits in hand, and a historic bull market for green metals ahead, Bravo has all the ingredients to become a major player in the industry.

View Bravo Mining's company profile: https://www.cruxinvestor.com/companies/bravo-mining

Interview with Luis Azevedo, Chairman & CEO of Bravo Mining Corp.

Our previous interview: https://www.cruxinvestor.com/posts/bravo-mining-tsxvbrvo-copper-gold-discovery-in-tier-1-pgm-project-in-brazil-5938

Recording date: 4th March 2025

View Bravo Mining's company profile: https://www.cruxinvestor.com/companies/bravo-mining

Previous Episode

Erdene Resource Development (TSX:ERD) - Mongolia Gold Developer to Pour First Gold by Q3 2025

Interview with Peter Akerley, President and CEO, Erdene Resource Development

Our previous interview: https://www.cruxinvestor.com/posts/erdene-resource-development-tsxerd-mongolia-gold-producer-with-130m-annual-cash-flow-potential-6179

Recording date: 4th of March, 2025

Erdene Resource Development (TSX: ERD, MSE: ERDN) is in the final stages of bringing its high-grade Bayan Khundii gold project in southwestern Mongolia into production. Construction is expected to complete in April 2025, with commercial production anticipated by September-October 2025.

The open-pit Bayan Khundii project boasts an exceptional grade of 4 grams per ton gold, positioning it to produce approximately 85,000 ounces annually with a current reserve-based mine life of six years. At current gold prices, the operation is projected to generate after-tax cash flows exceeding $100 million per year, providing significant economic resilience even during the startup phase.

"The high-grade nature of this deposit - four grams per ton - sets ourselves far apart from most in the open pit world. It gives us a buffer on the economic side," notes Erdene's President and CEO Peter Akerley.

In 2023, Erdene entered a strategic alliance with Mongolia Minerals Corporation (MMC), formalized in January 2024 as a 50/50 joint venture. Importantly, Erdene retained a 5% net smelter return royalty that begins after production of 400,000 ounces, effectively giving the company a 60/40 economic split once this threshold is reached. The partnership provided $40 million in equity and an $80 million shareholder loan repayable over five years.

Recent drilling programs have shown promising results for potential grade improvements, with ongoing exploration work focused on extending the mine life. Erdene has identified opportunities to optimize the processing plant, potentially increasing production to 95,000-100,000 ounces annually with minimal capital investment.

Beyond Bayan Khundii, Erdene controls the Zuun Mod molybdenum-copper project, which has gained improved prospects due to enhanced infrastructure and strengthening molybdenum markets. The company plans to allocate over $10 million annually to exploration starting in 2026-2027, focusing on expanding resources around Bayan Khundii and advancing other deposits in their Khundii Minerals District.

Mongolia's strategic location adjacent to China provides advantages for resource development, allowing Erdene access to both Western capital markets and Asian consumer markets, particularly valuable in today's fragmenting global economy.

Learn more: https://www.cruxinvestor.com/companies/erdene-resource-development

Next Episode

Vista Gold (TSX:VGZ) – One of the World’s Largest New Gold Projects, Fully Permitted, FS Due Mid-’25

Interview with Frederick H. Earnest, President & CEO, Vista Gold Corp

Our previous interview: https://www.cruxinvestor.com/posts/vista-gold-tsxvgz-smaller-scale-strategy-to-enhance-economics-5520

Recording date: 4th of March, 2025

Vista Gold Corp is transforming its approach to developing the Mount Todd gold project in Australia, one of the world's largest undeveloped gold resources with over 9 million ounces. The company is shifting from an ambitious large-scale operation to a more financially viable smaller project that better aligns with current market realities.

The original development plan called for a 50,000 tons per day operation with capital expenditure requirements of approximately $1 billion. The revised strategy reduces the scale to 15,000 tons per day with a targeted capital requirement of under $400 million—a 60% reduction in upfront investment costs.

"For years we talked about Mount Todd as this big project... but a billion dollars US is still a big check to write," explained Fred Earnest, President and CEO of Vista Gold, in a recent interview at the PDAC convention.

While the smaller operation would produce 150,000-200,000 ounces of gold annually compared to the original plan's 500,000 ounces, the economics remain compelling. The all-in sustaining costs are estimated at $1,300 per ounce for the smaller operation, compared to $960 per ounce for the larger version, still offering substantial margins at current gold prices.

A key advantage of Mount Todd is its advanced permitting status, with all necessary environmental licenses and operating permits already secured. "Literally, I think we could write a letter and we could be in construction in two or three months' time," Earnest noted.

The company is well-positioned financially to advance the project, ending 2024 with approximately $17 million in cash—providing a two-year runway without additional funding. This financial stability allows Vista Gold to complete the feasibility study for the smaller-scale approach, which is expected by mid-2025.

For eventual project development, Vista Gold is exploring multiple funding avenues, including Australian debt sources like the Northern Australia Infrastructure Fund and equity financing through its North American listings.

The strategic pivot comes at a time when the gold mining sector faces challenges in developing new large-scale projects in safe jurisdictions. By focusing on a more manageable development approach, Vista Gold aims to position Mount Todd as an attractive opportunity for mid-tier producers seeking growth through acquisition or partnership.

Learn more: https://www.cruxinvestor.com/companies/vista-gold-corporation