Bravo Mining Advances Tier-One PGM Project in Brazil with Copper-Gold Upside

• Bravo Mining is exploring PGMs (platinum group metals) and copper in the Carajás region of Brazil.
• The company's Luanga project is described as a tier-one PGM project with high grades and good infrastructure.
• Bravo Mining recently made a significant copper discovery at the project, with one drill hole intersecting 11m at 15% copper with 3 g/t gold.
• The company plans to update its mineral resource estimate in Q1 2025, which is expected to show an increase in total resource size.
• Bravo Mining will have about $22 million in cash by end of 2024, providing funding for continued exploration and development work.

Bravo Mining Corp. is an exploration and development company focused on advancing its flagship Luanga platinum group metals (PGM) and base metals project in the Carajás Mineral Province of Brazil. The company, led by CEO and Chairman Luis Azevedo, is positioning itself to capitalize on the growing demand for PGMs driven by their use in hybrid vehicles and the potential supply constraints from traditional producing regions. This article examines Bravo Mining's progress at Luanga, its recent copper discovery, and the factors that make it an intriguing prospect for investors interested in the critical minerals sector.

Bravo's PGM Resource and Exploration Progress

The Luanga project is located in the State of Pará in northern Brazil, within the highly prospective Carajás Mineral Province. This region is known for its world-class mineral deposits, including iron ore, copper, and gold. Bravo Mining acquired the Luanga project in 2021 and has since been aggressively advancing exploration and development activities.

Mineral Resource and Recent Drilling

The Luanga project boasts a substantial PGM resource. CEO Luis Azevedo provided an update on the company's progress:

"In terms of the project size, we've shown the market at 9.8 million ounces total including inferred and indicated. What we've done this year is move some of this inferred to indicated, and we are probably going to present the update on mineral resource estimate in the first quarter next year."

This statement indicates that Bravo Mining has been successful in upgrading the confidence level of its resource through infill drilling. The upcoming resource update in Q1 2025 is anticipated to demonstrate growth in the overall resource size while maintaining similar grades.

Importantly, Azevedo highlighted the depth potential of the deposit:

"We've showed the market some deep holes at 450 meters, which will not be in the resource update, but it's showing to the market that if we are getting more ounces and more tons, that is still a lot of potential to the depth of the project. So is Luanga a project of 10 million ounces? No, for sure that's the project probably up to 300-350 meters maximum, and we prove it - Luanga continues to 450 meters still."

This insight suggests significant exploration upside beyond the current resource envelope, which could lead to future resource expansions and extended mine life potential.

Drilling Efficiency and Cost-Effectiveness

One of Bravo Mining's strengths appears to be its ability to efficiently execute large-scale drilling programs. Azevedo noted:

"We are close to 120,000 meters of drilling in Luanga globally, and that means basically 72,000 meters was drilled by us in 2.2 years – 26 months since we were public. Not many companies have done that using $30 million, that's how much we spent so far."

This level of drilling productivity for the capital invested demonstrates the company's operational efficiency and ability to stretch investor dollars effectively.

Recent Copper Discovery

In addition to its established PGM resource, Bravo Mining recently made a significant copper discovery at Luanga. Azevedo described the discovery as "the best hole of the year," with one drill hole intersecting 11 meters at 15% copper with 3 g/t gold. This high-grade copper mineralization adds a new dimension to the project and could significantly enhance its economics.

The company is following up on this discovery with additional drilling, having completed 8,000 meters focused on the copper zone, with plans for an additional 4,000 meters. While emphasizing the need for careful interpretation and further work, Azevedo expressed optimism about the potential of this new copper component.

Interview with Chairman & CEO Luiz Azevedo

Infrastructure and Development Advantages

Location and Access

The Luanga project benefits from its location in an established mining region with well-developed infrastructure. Azevedo highlighted these advantages:

"The infrastructure that we have surrounding us is terrific. You have roads to the camp, you have three power lines, power in Brazil is still very cheap compared to any place in the world except India, and you have basically a government that is pro-mining, different than many other jurisdictions where you see restrictions."

This existing infrastructure is expected to significantly reduce capital costs for future development and enhance the project's overall economics.

Permitting Progress

Bravo Mining has made steady progress on the permitting front. Azevedo outlined the timeline:

"We submit the permit here last June. The authorities are going to site in October. We expect that the first permit, which includes public hearing, which is what we call the social license, is probably scheduling for the first quarter of next year. After that, what you have to do is to submit your engineering plans, and it probably takes 6 months to maximum one year to get your installation license, which is our construction license."

Based on this timeline, the company anticipates having the project fully permitted by 2025, with a five-year window to build the project, extendable for an additional five years if needed.

Cash Position and Efficient Capital Deployment

As of the interview date, Bravo Mining reported a strong cash position with expectations to end 2024 with $22 million. This financial cushion provides the company with ample resources to continue its exploration and development activities without immediate funding pressure.

Azevedo emphasized the company's efficient use of capital, citing factors such as a Brazil-based team that minimizes mobilization costs and favorable currency exchange rates:

"We are very efficient in deploying our cash. We know Brazil quite well. We have only three people outside of this company that are not in Brazil, so we don't have mobilization costs. We spend everything in reals, and unfortunately, the real has devaluated. At the same time, the cash in the bank receives high interest, so it's a very big composite helping us."

Market Perception and Shareholder Base

While Bravo Mining has made significant progress on multiple fronts, Azevedo acknowledged that the market reaction to developments like the copper discovery has been somewhat muted. He attributes this partly to the need for more data and interpretation of the new copper zone.

Regarding the company's shareholder base, Azevedo indicated satisfaction with the current mix of investors:

"Our shareholder base is pretty comfortable with what they have, and I read a lot about what my investors say – they're pretty comfortable. The market is the market, and if the share price is sometimes oscillating, it's because Bravo is the only company that in their portfolio that is still being very, very rewarding to them."

This suggests a level of stability in the shareholder base, with long-term investors who understand the company's strategy and potential.

Brazil as a Mining Jurisdiction

Azevedo painted a positive picture of Brazil as a mining jurisdiction, citing political stability despite recent tensions and a pro-mining stance from the government. He noted an increase in foreign investment in the mining sector:

"We came from 60 international companies in Brazil to 130 at the moment. 40% of these companies are doing lithium and rare earths, but you still have now people coming looking for niobium, they are looking for copper, they are still looking for nickel even with this depressed price, and of course gold."

This influx of international mining companies suggests growing recognition of Brazil's mineral potential and improving perception of the country as an investment destination for the mining sector.

Bravo Mining's Luanga project represents a compelling investment opportunity in the critical minerals space, offering exposure to both PGMs and copper. The company's efficient exploration approach, strong cash position, and strategic location in a mining-friendly jurisdiction position it well for continued growth and development. While challenges remain, including the need for further delineation of the new copper discovery and completion of economic studies, Bravo Mining appears well-equipped to advance Luanga towards becoming a significant new source of PGMs and potentially copper in Brazil.

The Investment Thesis for Bravo Mining

• Tier-One PGM Asset: Luanga offers exposure to a large, high-grade PGM resource with exploration upside.
• Copper Discovery Upside: Recent high-grade copper intersections add potential for improved project economics.
• Strong Financial Position: ~$22 million cash at year-end 2023 provides runway for continued exploration and development.
• Favorable Jurisdiction: Brazil offers good infrastructure, low power costs, and a pro-mining government stance.
• Experienced Management: Team with track record of success in Brazilian mining sector.
• PGM Market Outlook: Growing recognition of PGM importance for hybrid vehicles supports long-term demand.
• Efficient Capital Deployment: Demonstrated ability to conduct large-scale drilling programs cost-effectively.
• Near-term Catalysts: Resource update in Q1 2025, ongoing copper zone exploration results, and advancing permitting process.

Macro Thematic Analysis

The macro thematic driving interest in Bravo Mining's Luanga project is centered on the evolving landscape of critical minerals, particularly platinum group metals (PGMs) and copper, in the context of the global energy transition and automotive industry transformation.

PGMs, traditionally associated with catalytic converters in internal combustion engines, are finding renewed relevance in the hybrid vehicle market. As the world grapples with the challenges of transitioning to cleaner energy and transportation solutions, hybrid vehicles are emerging as a significant intermediate step. This trend is supported by ongoing energy crises and the realization that full electrification faces infrastructure and raw material constraints.

Simultaneously, the copper market is poised for significant growth driven by increased electrification across various sectors, including electric vehicles, renewable energy infrastructure, and grid modernization. Bravo Mining's recent high-grade copper discovery at Luanga positions the company to potentially benefit from both the PGM and copper demand drivers.

The geopolitical landscape is also shifting, with traditional PGM and copper producing regions facing challenges. South Africa, the world's largest platinum producer, is grappling with power supply issues and labor unrest. Meanwhile, copper-producing nations like Chile and Peru are experiencing political uncertainties that could impact future supply. This situation is prompting miners and investors to look for new, stable jurisdictions for resource development.

Brazil, with its established mining industry, good infrastructure, and pro-mining government stance, is attracting increased attention as a destination for mining investment. The influx of international mining companies into Brazil, as noted by Bravo Mining's CEO, underscores this trend:

"The conversation is quite different than one year ago. One year ago, everybody thought that PGM is something obsolete. Now people understand the importance of PGMs, not because the EV production is decreasing, but with the crisis of energy still going on, they realize that hybrids probably is the most route that the automobile industry is taking."

This shift towards hybrid vehicles, which still require PGMs for catalytic converters, combined with potential supply constraints from traditional producing regions like South Africa, creates a favourable demand outlook for PGM projects like Luanga.

Bravo Mining's Luanga project stands out as a significant PGM opportunity with newly discovered copper potential in the mining-friendly jurisdiction of Brazil. The company's efficient exploration approach, strong financial position, and strategic location provide a solid foundation for advancement. While the full potential of the recent copper discovery remains to be determined, it adds an intriguing dimension to the project's value proposition.