Wedoany.com Report on Feb 10th, ValOre Metals is advancing the Pedra Branca platinum-palladium project in northeastern Brazil, which boasts 2.2 million ounces of platinum group element resources, aiming to address the structural supply gap in the global platinum-palladium market. CEO Nick Smart, with development experience at Anglo American Platinum and De Beers, is leading the project's transition from exploration to development, setting clear milestones to unlock the asset's value. Located outside traditional platinum-palladium producing regions, the project's geographical advantage is becoming increasingly prominent as geopolitical factors impact supply chain security.

ValOre Metals' strategic development path targets 2026 as a key milestone. The company has engaged engineering firm Lycopodium to lead the preliminary economic assessment, aiming for completion by year-end, while conducting metallurgical testing through the University of Cape Town's Minerals Research Centre to optimize the processing route. The deposit's geological structure offers economic advantages: near-surface mineralization within the first 30 meters has higher grades suitable for early-stage mining, while deeper rock is amenable to conventional flotation. Smart notes, "Our deposit structure means a significant portion of the high-grade material is near-surface material. So it's close to the surface. We can mine it early. Obviously, that's a benefit economically. So you get cash flow earlier, and it certainly helps the project economics." This configuration supports open-pit mining, reducing capital intensity and execution risk, with a core area of approximately 1.1 million ounces of resources forming the foundation for initial operations.

The selection of technical partners reflects institutional standards, with the University of Cape Town providing platinum-palladium processing expertise and Lycopodium bringing cross-jurisdictional project experience. Following the preliminary economic assessment, pre-feasibility and feasibility studies are planned for 2027-2028, including infill drilling to upgrade resource classification. Metallurgical testing is progressing along two tracks corresponding to different ore characteristics, with large-scale sample results expected by 2026 to inform engineering parameters. Regarding resource scale, the 2.2 million ounces is based on conservative estimates. Since acquisition, 20,000 meters of drilling have been completed, doubling the resource from 1 million ounces, with mineralization extending along an 80-kilometer trend, indicating expansion potential. Smart states, "Even at 2.2 million ounces, we are quite pleased with the scale of that resource to be able to advance it into engineering studies." At current platinum prices exceeding $2,000 per ounce, the resource value is approximately $4 billion, with an annual production potential of 150,000-200,000 ounces and a mine life of 10-15 years, representing a significant scale for a project outside traditional producing regions.

In terms of jurisdictional advantages, Brazil classifies platinum and palladium as critical minerals, providing federal support, and the state of Ceará has shown project acceptance. The experimental mining permit process allows for early production, and ValOre is reviewing this fast-track route. Smart explains, "It's a route that allows you to get into early production, which in many ways helps a company like ours. You can prove the project works. You prove the impact of the work you're doing, even before fully scaling up." Market fundamentals indicate the platinum-palladium industry faces structural supply constraints alongside sustained demand growth. Smart emphasizes, "We see growing demand for platinum and palladium. There are some real structural constraints on increasing supply. Therefore, we see a multi-year deficit in terms of supply-demand balance." This imbalance stems from geological concentration in South Africa, Russia, and Zimbabwe, coupled with exploration challenges elsewhere, giving the Pedra Branca project value in supply diversification outside geopolitically concentrated regions, addressing the long-term deficit in the platinum-palladium market.