Atalaya II

The Atalaya project area was initially explored for its potential as a source of ornamental rocks and construction aggregates, which later became the focus of Atalaya I. During these initial investigations, apart from the geological cartography of the concession, surface sampling, a series of test pits with sampling and the corresponding mechanical and chemical tests and their characterization by optical microscopy and X-ray diffraction were carried out. The results of previous geological studies carried out in the concession area (geology, drillholes, test pits, analysis, geotechnical tests) by other companies were also considered.

In the course of the investigation, the existence of high concentrations of titanium was revealed, which was not initially anticipated. This discovery led to the conception of Atalaya II, a separate project focused on exploring and potentially exploiting these mineral resources.

Subsequently, on some of the samples taken, both from surface samples and test pits, another series of X-ray diffraction analysis, X-ray fluorescence on larger elements and trace elements, and optical microscopy studies were carried out to determine the mineral composition.

Through these laboratory analyses, it has been possible to verify the existence of titanium contents (in the form of titanium dioxide) that oscillate between 2.15% and 3.22% (average of 2.58%). This finding prompted the planning of a broad and detailed investigation of the entire concession area to confirm the existing reserves of this precious and in-demand metal.

Ilmenite, a titanium-iron oxide mineral, was found to be the primary source of titanium in the hand samples, often accompanied by pyrrhotite. Importantly, further analysis revealed the presence of all 17 rare earth elements within the ilmenite. This discovery significantly enhances the potential value of Atalaya II.

The presence of other minerals such as nickel, copper, cobalt, chromium, and vanadium were also observed in low percentages and will be further investigated.

This new discovery of high concentrations of titanium and rare earth elements in the Atalaya II area adds significant value to the project's potential. As global demand for titanium and rare earth elements continues to grow due to their use in various industries, including aerospace, automotive, electronics, and renewable energy, the presence of these valuable minerals could provide a significant boost to the project's profitability. Further exploration and confirmation of the existing reserves could lead to the development of new processes and technologies to extract and refine these minerals, creating new opportunities for the Company in the future.

It is important to note that the discovery of titanium, rare earth elements, and other metals in the Atalaya II project area does not disrupt the Atalaya I aggregates operation for several reasons:

The mineralization in the Atalaya II project area is not uniform, meaning that some areas will have higher concentrations of titanium, rare earth elements, and other metals, while other areas will have lower concentrations. Therefore, the Company can selectively extract the higher-grade ore and process it for its metal and rare earth element content, while continuing to produce aggregates from the lower-grade areas in Atalaya I. This allows the company to optimize its mining operations and maximize the value of the mineral resources in the area.

The discovery of titanium, rare earth elements, and other metals in the Atalaya II project area presents an opportunity for the Company to potentially expand its operations beyond the aggregates production of Atalaya I, while also ensuring that the existing operation is not disrupted. The presence of rare earth elements, in particular, opens up exciting possibilities for the Company in the rapidly growing market for these critical materials.