Our Sand Project is comprised of multiple sand deposits are located on the banks and on the Jequitinhonha River in the State of Minas Gerais in Brazil. High-quality, commercial grade sand for construction use is found in our deposits. The first deposit which we have been mining contained 1,140,400 cubic meters of sand when initially assessed in 2014. Several other deposits of similar size are thought to exist in our overall project area.
On January 19, 2022, Diário Oficial da União (the Brazilian Government’s official gazette) published the formal authorization for operations at our second sand mine in another one of our mineral rights. Such authorization permits us to mine and sell sand for the next ten years, after which we can apply for renewal an unlimited number of times. For this operation, sand retrieval will be by a dredge boat on the river. Since the logistics of this operation are simple and sand is continuously replaced by the river, this mine could become an attractive source of revenues. We plan to have this new sand mine online by early second quarter 2022.