VELOX ENERGY MATERIALS INC. f
CURRIE ROSE RESOURCES INC.
An Exploration Stage Company
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE ENDED DECEMBER 31, 2022 AND 2021
CURRIE ROSE RESOURCES INC.
An Exploration Stage Company
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED DECEMBER 31, 2022 AND 2021
The following management discussion and analysis ("MD&A") of Currie Rose Resources Inc. ("Currie Rose" or "the Company") provides a review of corporate developments, results of operations and financial position for the year ended December 31, 2022 ("December 2022" or "FY2022") and 2021 ("December 2021" or "FY2021"). This discussion is prepared as of March 15, 2023 and should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2022 and 2021 ("Audited 2022 Financial Statements"). Additional information relating to the Company, including the audited annual consolidated financial statements and MD&A for the years ended December 31, 2021 and 2020 ("Audited 2021 Financial Statements") is available on Currie Rose's SEDAR profile at www.sedar.com and the Company's website at www.currierose.com. The results reported in this MD&A have been prepared in accordance with International Financial Reporting Standards ("IFRS") and are presented in Canadian dollars, which is the Company's functional currency.
For the purposes of preparing this MD&A, management, in conjunction with the Board of Directors (the "Board"), considers themateriality of information. Information is considered material if: (i) such information results in, or would reasonably be expected to result in, a significant change in the market price or value of the Company's common shares; (ii) there is a substantial likelihood that a reasonable investor would consider it important in making an investment decision; or (iii) it would significantly alter the total mix of information available to investors. Management, in conjunction with the Board, evaluates materiality with reference to all relevant circumstances,including potential market sensitivity.
FORWARD-LOOKING STATEMENTS
This MD&A contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as "forward-looking statements"). These statements relate to future events or the Company's future performance. All statements other than statements of historical fact are forward- looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or statements that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Forward- looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements. The forward-looking statements in this MD&A speak only as of the date of this MD&A or as of the date specified in such statement.
RECENT HIGHLIGHTS
Fiscal year 2021
On April 14, 2021, the Company gave the required 10 days' Notice of Termination to 0811662 BC Ltd., one of the two 3rd party option holders of the Rossland Project (see discussion under "Termination of one of two Rossland option agreements" below). As a result, the Company has recorded a write-down of $701,850, or 50% of the carrying value of the Rossland Project, as of that date;
On July 2, 2021, the Company gave the required 10 days' Notice of Termination to 0704723 BC Ltd., the second of the two 3rd party option holders of the Rossland Project, under Section 11.01 of the option agreement dated April 12, 2018.
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CURRIE ROSE RESOURCES INC.
An Exploration Stage Company
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED DECEMBER 31, 2022 AND 2021
As a result of this termination., 100% of the aggregate mining costs re the Rossland Project as well the Company has written off the original acquisition costs of $32,000 related to its 100% owned Golden 8 Project (that formed part of the Rossland Gold Project), and
On April 29, 2021, the end of the eight month due diligence period, Accelerate gave written notice that they have declined their option to acquire 51% of the Rossland Project and will convert their cumulative advances of $500,000 into 8,333,334 common shares of the Company at the previously agreed upon price of $0.06 per share (see discussion under "Rossland Project - Accelerate transaction" below). Such approval was granted by the TSX Venture Exchange on July 23, 2021.
On October 27, 2021, the Company announced subject to regulatory approval, the 100% interest in two brown field Vanadium (Battery Metal) Projects (the "Project") located in North Queensland, Australia. The Project includes 1,240 km2 close to infrastructure and enroute to Townsville Port. Subject to TSX Venture Exchange approval, the Company will issue 12,500,000 common shares to each company, Liontown Resources Limited and Chalice Mining Limited ("Vendors"). In addition, the Company will issue 4,000,000 share purchase warrants to each of the Vendors at $0.10 with a 2-year expiry. The Company will pay a 2% net gross revenue royalty with the Company holding the right to purchase 50% of either Royalty by making a payment to the Royalty holders of $1,000,000, in cash.
Fiscal year 2022
On February 11, 2022, the Company submitted the 43-101 technical report, prepared in accordance with the requirements of the NI43-101 standard to the TSXV for approval in connection with the Project. The Company announced on August 5, 2022 the closing of the acquisition of the Project as outlined below.
THE NORTH QUEENSLAND VANADIUM PROJECT
On November 1, 2022 the Company released an updated independent mineral resource estimate ("MRE") for its Cambridge Vanadium Deposit that forms part of the North Queensland Vanadium Project ("NQVP") situated within the "Vanadium Hub" approximately 450 km west of the port of Townsville, Queensland, Australia.
NQVP is a district-scale,advanced-stage Battery Metal asset within the world-class Vanadium Hub. The project covers 1,246 km2 in 100%-owned seven EPMs with over 60 km of sedimentary host rocks of the Toolebuc Formation.
The project is located mid-way between Mt Isa and the Port of Townsville (north Queensland) and serviced by the town of Richmond with rail, road, power and port access and statewide skilled workforce.
The flagship Cambridge deposit was recently expanded to over 200Mt (see below), and several other prospects including Flinders River, Runnymede and Silver Hills provide near-term potential for resource expansion.
Historic preliminary metallurgy studies from the Cambridge deposit indicate that the deposit is oxidized, shallow, friable with a low strip ratio and suitable for pre-concentration and amenable to acid leach.
In addition, there is significant State Government support including the $10,000,000 common user Vanadium pilot plant due for commissioning in late 2023.
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CURRIE ROSE RESOURCES INC.
An Exploration Stage Company
MANAGEMENT DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED DECEMBER 31, 2022 AND 2021
Highlights:
- Data review of historic drilling reveals Exploration Targets for processing.
- Preliminary metallurgical test work on composited drill samples from the Cambridge vanadium deposit is underway.
- Advanced planning of diamond drilling for a larger bulk metallurgical sample program at the Cambridge deposit is in progress.
- Indicated Resource of 61.33Mt @ 0.34% V2O5. The initial 2018 MRE contained no indicated mineral resources.
- Inferred Resource increased by 61Mt to 144.87Mt @ 0.33% V2O5, representing a 72% increase from the initial 2018 resource.
- Updated resource estimate based on 65 drill holes, using 30 drill holes not included in the initial 2018 resource.
- Estimated Molybdenum (MOO3) grade of 239.7ppm, up 51.8ppm ~28% increase.
The updated MRE is based on "reasonable prospects for eventual economic extraction" and is constrained in a Lerchs Grossman (LG) open pit shell that was constructed using $AUD 23,152/tonne ($USD 7.5/lb) for V2O5. The MRE has an effective date of October 27, 2022 and is based on historical drilling from 2008 to 2019. Details of the MRE are shown in Table 1 below.
Additionally, the North Queensland Vanadium Project has multiple characteristics that are positive for potential future development. These include:
- Existing sealed road access on the eastern edge of the deposit.
- Close to rail and power infrastructure.
- Mineralization is flat lying and outcrops at surface in places.
- Large property with multiple exploration targets.
- Cambridge Deposit covers ~ 2,500Ha (or 2%) of the 124,000Ha package.
Table 1 - Mineral Resource Estimate for the NQVP at 0.25 % Vanadium Cut-Off Grade
Cut-Off | Classification | Ore Tonnes | V2O5 | V2O5 | MoO3 | MoO3 |
V2O5 (%) | (Mt) | (t) | (%) | (t) | (ppm) | |
0.25 | Indicated | 61.33 | 210,300 | 0.34 | 14,600 | 234.6 |
Inferred | 144.87 | 483,400 | 0.33 | 35,500 | 241.9 | |
Notes:
- Indicated and Inferred Mineral Resources are not Mineral Reserves. Mineral resources which are not mineral reserves do not have demonstrated economic viability. There has been insufficient exploration to define the inferred resources tabulated above as an indicated or measured mineral resource, however, it is reasonably expected that the majority of the Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration. There is no guarantee that any part of the mineral resources discussed herein will be converted into a mineral reserve in the future. The estimate of mineral resources may be materially affected by environmental,
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CURRIE ROSE RESOURCES INC.
An Exploration Stage Company
MANAGEMENT DISCUSSION AND ANALYSIS
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Currie Rose Resources Inc. published this content on 10 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 April 2023 08:59:08 UTC.
