Stakeholder Gold receives licence for 2nd Brazil quarry

Jun 14, 2024

2024-06-13 13:57 ET – News Release

Mr. Christopher Berlet reports

SRC ANNOUNCES FIRST NEW QUARRY LICENSE

Stakeholder Gold Corp. has received licensing for the company’s second quarry, a white quartzite quarry located in Minas Gerais, Brazil, near to the company’s first operating quarry.

On June 12, the state forestry institute of Minas Gerais, Instituto Estadual de Florestas (IEF), granted Stakeholder’s Brazilian subsidiary, Mineracao VMC Ltda. (VMC), authorization to clear the new project area for commercial production. VMC has now commenced building quarry infrastructure on site for the company’s second operating quarry.

A sample block is being produced for marketing purposes. Full commercial operations will begin once the regional state environmental agency, Superintendencia Regional de Meio Ambiente, (SUPRAM) grants the environmental licence, which is now pending.

“White quartzite from Diamantina and the surrounding region is in strong demand. Many buyers have had difficulty sourcing white quartzite for their cutting and polishing operations. We believe that our new white quartzite quarry will find a ready market with steady demand, and that it will provide healthy margins and steady operating profits for the company,” said Marcus Chase, president of VMC.

Four new quarries planned for 2024

Licensing for VMC’s third quartzite quarry is also nearly complete. The application for an environmental licence has received an initial response from SUPRAM. The area under consideration has already been issued a licence by the federal mining agency, the Agencia Nacional de Mineracao (ANM), and so VMC will be able to begin commercial operations immediately upon receipt of an environmental licence. The company expects to be able to report progress on this licensing application shortly.

“The blue quartzite produced from the company’s proposed third quarry has excellent esthetic and physical characteristics. The test block has an attractive mix of blue and white, and the material cuts and polishes easily. These characteristics will appeal to our clients.”

VMC’s second and third quarries are both located within a two-kilometre radius of the company’s current operating quarry. The company expects to benefit from synergies resulting from access to existing personnel and equipment.

VMC’s planned fourth and fifth quarries are also currently in pursuit of licensing. The materials for these proposed quarries have never been brought to market and will likely be able to command premium prices, which the company anticipates being in the range $2,500 (U.S.)/cubic metre.

“Our objective is to expand from a single operating quarry to five operating quarries in 2024. We are also initiating direct sales of these building materials into the Canadian market, beginning in the GTA [Greater Toronto Area] in Ontario, where we see evidence of rapid and sustainable growth in urban development,” stated Christopher Berlet, president and chief executive officer of Stakeholder Gold.

“Stakeholder has twin channels for shareholder growth. The first is an expanding revenue stream from high-margin quarry operations producing exotic stone for the building business. The quarries provide an opportunity for robust cash flow growth, while helping to restrict treasury share issuance. The second channel derives from the potential for substantial gold and copper discovery on the company’s 100-per-cent-owned Ballarat gold project located in the heart of the White Gold district of the Yukon territory, Canada.”

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https://stakeholdergold.com/