The 6ix Report - Bravo Announces Commencement of Phase 2 Program at Luanga

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0:33 Hello everyone and welcome to The 6 Report. I'm here with Luis Azevido, CEO of Bravo Mining to discuss their recent news. And Luis, you're coming on to talk about the commencement of your Phase 2 drill program and the results from the previous drill program. Now, on April 4th press release, it states that Bravo has elected to accelerate its exploration program targeted magmatic nickel copper sulfides at Luanga. Can you provide further context to this acceleration of targeting the magmatic nickel sulfides where you primarily focus on the PGM metals? Like what has changed exactly in your strategy? Well, thank you Kyle for the interview. I'm very happy to have you here. And we just put this announcement as you said. We are accelerating the exploration, but that doesn't mean that we are changing the strategy here.

1:24 Basically our idea from day 1 was that phase 2 we're gonna go for looking for the deep mineralization. As you know, phase 1, we infilled the valleys drill holes which were done in 200 meter space to 100 meter space, but we keep at the level of 150,200 meters in depth. So now our plan on phase 2 was actually going deeper, but as we found in the phase 1, especially in the center zone, that it, since the stratigraphy gives us the benefit of when we go stepping out of the mineralization. In fact, we are going deeper on the

2:07 stratigraphy. We're going to do these 2 things. We're going to go for the deep level of the PGM mineralization and also exploring the nickel one. So, we have to locate those holes. And we thought, like, if nickel is coming and the presence is there, why not put an EM survey? And we thought about ground EM survey, but for our lucky, and I think lucky is like something connected with Luanga at this point, and we'll go back to that later on, but for our lucky, there is a helicopter, which is not very often in Brazil, doing an EM for the Carajás regions. So we are in, I would say, good negotiations with them to get a window and do an EM survey.

2:57 We also have a lot of equipment that we bought from a previous company that left in Brazil as Magnetomers and Gravinets. And as you saw, we are doing also these surveys. So the combination of these 3 methodologies would give us probably what I would call the acceleration for the nickel exploration, keeping the PGM explorations as was planned before. Perfect. Thank you for that thorough explanation. And for the Phase 1 program, after this April 4 press release, which is today, 40 drill holes are still pending. Have all the drill holes to date hit mineralization? Maybe you can touch on what you know about the mineralization at Luanga. Yes.

3:43 Well, at this point, all the holes have hit mineralization. As we mentioned, we are doing an infill program and we are basically drilling between holes that the Ivali has conducted, which is showing us that the mineralization is continued and in fact the grades that we are getting is a little bit better than the grades that you probably got at the beginning. And this is not

4:09 anything new. In 20 years time, since the assays were done back to the 2000 and today the techniques improved, we are getting better grades because the absorption is better and the technology is better. But we also have the situation over here where all the holes that we got hit mineralization and I believe the next 40 holes that we have to release, they probably are going to be following the previous ones. So we are expecting good results on them, as we've been delivering a lot of good results. And the mineralization in Luanga is a typical PGM. When we got this project, the description of Luanga was this is an ultramafic and mafic layers with some PGM but no copper and no nickel, which were strange to us. But actually, at the time, the nickel was 0.1 in some of the assays. They were done for total nickel, not for sulfide nickel. So this was not the attention of Valle at the time and basically the rhodium, which was at a totally different price, $500 an ounce, was not in the radar of Valle. And what we found with this deep drilling, and again with some luck, we found this massive sulfide, we found a lot of high hits

5:36 of rhodium, so that changed the program completely. Today if you put all the holes that we have, you can say 30%, 35% of these deposits is represented by palladium and about 30 percent is nickel and 20 percent is rhodium. And the price change, this change as well. For instance, if rhodium goes back to 17,000, this becomes a rhodium project and probably the only one in the world. Yeah, the rhodium is exciting for sure, but tell me, because Bravo Mining is a relatively new publicly traded company and this is a large PGM deposit slash nickel slash rhodium, But can you tell me more about the history of this project and why it hasn't been further developed in the past?

6:23 Well, this was found in 1990 by a geochemistry assay of Valley, which found the PGM. So Valley done like 4 drill campaigns in this project. But in the early 2000s, Vale CEO kind of diversed their strategy. They decided they were going to be a base metal company and an iron ore company. Basically, iron ore with base metal. So all these precious metals division was farmed out. And it probably used

6:55 some of the deposits like Fazenda Brasileiro, Almas, which is today in the hands, was in the hands of Yamana, and another one, Almas, was in the hands of Aura. They continued to produce today, but actually Vale thought that this was a small deposit for them. And actually, in the case of Luanga, it's close to Serra Pelada, which had a bad past history with Vale. This was invaded, about 20,000 people were extracting artisanal mine over there. They probably elected, it will be complicated for us, They leave it behind. But they didn't sold when they done the farm out to Yamana and other companies. They kept that.

7:43 And actually during the COVID time, I think they found that this could be a very good asset for a local, which was me. Basically I probably opened the first mine with Tony Poglaes and Simon Motrand, which is also in Luanga as well. The first mine in the Carajás besides Vale, they said, well, you've done a good work, maybe you can repeat over there, do what we could not do it, and we don't want to do it.

8:11 And in fact, they were not probably lucky to find the nickel before, because I know if they have found this nickel that we found, this story would be different today. And when you acquired it, you were also budgeting for a lot more expensive drilling, right? And it's actually significantly cheaper than what you budgeted for. So could you elaborate on why there is such a positive discrepancy in the expected expenditures while most companies the discrepancies are leaning in the opposite way? Yes. Well, this is a Brazilian company. It's a pure Brazilian company. We have close to 100 people in this company, only 3 don't speak Portuguese, and only 3 didn't live in Brazil. All the others are in Brazil.

8:58 So this is also a successful and experienced team that I put together. I would say I got together the creme of the la creme, what we say here, is the best we could find and we incentivize them and it also in this regard we know how

9:15 to contract I would say better and not necessarily cheaper but better and if for instance one thing that is very important that due to the solid case in terms of cash that we have in our hands, our past history in the region, people do believe in us, people do consider that we are there not for short term, but for a long term, and they want to be part of this success. So we de-risk for them and they reduce their costs as well. And this is being incrementally good to us. We budgeted between $250 and today we are about $220, which is basically what we expected. And sometimes we have some fluctuation by the currents but it's actually this is the average.

10:09 Perfect and I wanted to touch a little bit more on rhodium for those of you don't know rhodium is trading around like 7,400 an ounce. Do you have a solid grasp as an individual on the rhodium market? Who are the main suppliers and why it is one of, if not the most expensive metal on earth? Well basically it's a rare. There is Probably only the Bushfield produced like 80 to 90 percent of their hodge. And it's the fact that the catalyst industry need that material. And probably I would say that the big increase that we saw in the market was basically with this war in Ukraine, the automobile manufacturers were like concerned about what would happen to them, what would happen with semiconductors, and they went and bought a lot. But if you look at the past history of Rodium, probably the correct price, due to the hair presence of that, is around 10,000.

11:18 And I think between our directors and some of our management, we have a good experience in rhodium. And we consider that rhodium is a significant part of this deposit. And we are working very carefully to investigate the rhodium and if you look at the recently results like it there is some high rhodium associated with nickel sulfide as well so that's some part of our exploration for the future. Well thank you for that. And last question, like you stated rhodium is rare but if this ever were to become a mine and you wanted to extract the rhodium, is there any additional complications or difficulties to extract that specific metal from the material? Well, so far we've been conducting some metallurgical tests, basically repeating what Vale has done, and Vale have done an intensive program on that in South Africa and in Brazil.

12:17 We are doing basically in Brazil with the 2 labs and they are recovering quite well. As we thought in 20 years, there is a lot of progress coming to the industry. And we are, I would say experience and using that increase of technology and we're getting better results. I believe by the end of the year, we're going to put our resource, and you're going to see those results in, I would say, in more detail. But we're excited with that. That's what we can say at the moment. Perfect. And where can people go to learn more about your story? Well, the best thing would be go to our website, bravomining.com, and also contact Alex, which is based in Toronto, is the only employee that we have in Toronto and his number is 1416-509-0583.

13:14 Perfect, Thank you so much Luis for your time, I appreciate it. Thank you very much, it was a pleasure to have this interview with you. I appreciate it.