Australian Mines secures earn-in to Boa Vista gold project, expanding its footprint in Brazil’s Tapajós region

Why is Australian Mines pursuing gold in Brazil despite being known for battery metals in Australia?

Australian Mines Limited (ASX: AUZ) has broadened its resource focus by securing the right to earn up to 80% in the Boa Vista Gold Project in northern Brazil. This strategic expansion into one of South America’s most mineralised gold belts marks a pivot for the critical minerals explorer, which is traditionally known for its Sconi Project targeting nickel, cobalt, and scandium in Queensland. The new acquisition, announced on July 4, 2025, gives Australian Mines access to a historically significant gold district with strong geological continuity, high-grade intercepts, and potential for bulk-tonnage, open-pit development.

Located in the Tapajós Gold Province in Pará State, the Boa Vista Project provides the Australian miner with a substantial land package of 9,201 hectares. It also includes a historical inferred resource at the VG1 prospect of 8.47 million tonnes at 1.23g/t Au for 336,000 ounces, with mineralisation remaining open along strike and at depth.

What does the Boa Vista deal structure reveal about Australian Mines’ growth ambitions?

The transaction is structured as a staged earn-in agreement with Cabral Resources Limited, a subsidiary of TSX-listed GoldMining Inc., and Majestic D&M Holdings LLC. Australian Mines can earn a 51% interest in the first stage by spending A$4.5 million on exploration over three years, including 6,000 meters of diamond drilling and milestone payments totaling CAD$750,000. Issuance of A$1 million in AUZ shares is also required following successful completion of conditions.

Subsequent stages allow Australian Mines to boost its stake to 70% through feasibility studies and further investment, and eventually to 80% by making a payment of A$5 million or a value-based resource formula. The earn-in model reflects the Australian critical minerals developer’s desire to build district-scale gold exposure with financial discipline.

How does the geology of Boa Vista compare with nearby gold systems in the Tapajós province?

The Tapajós Gold Province has produced over 30 million ounces of gold historically. It is known for its structurally controlled systems and IRGS (Intrusion Related Gold System) signatures. Boa Vista mirrors many geological characteristics seen in more advanced regional projects such as Tocantinzinho (2.1Moz Au), Cuiú Cuiú (1.37Moz Au), and São Jorge (750koz Au), all hosted within or intruded by the Parauari Suite granitoids.

Boa Vista mineralisation is hosted in Paleoproterozoic granodiorites and intermediate volcanics and is structurally defined by northwest-trending shear zones. The VG1 prospect alone shows consistent gold intercepts over a 600-meter strike length and up to 85 meters width, with high-grade hits like 104.5m @ 1.59g/t Au and 23.5m @ 4.51g/t Au.

What is the exploration upside across other prospects within the Boa Vista land package?

Beyond VG1, the Boa Vista licence includes underexplored targets such as Jair, Almir, Planalto, and Zé do Leicha. All of them have seen limited trenching, artisanal mining, or preliminary drilling, and display gold-in-soil anomalies and structural complexity. The presence of multiple gold-bearing en-echelon structures, visible gold in outcrops, and metallurgical recoveries above 95% via gravity and cyanidation methods further boost exploration confidence.

Upcoming exploration plans include LiDAR and drone-based magnetic surveys, followed by 3,000 meters of targeted drilling aimed at resource expansion and testing cross-cutting high-grade zones. These structures are believed to offer significant grade uplift potential and may underpin a future JORC-compliant resource upgrade.

How does the recent placement support Australian Mines’ Brazilian exploration strategy?

To fund exploration and working capital, Australian Mines completed a A$2.5 million equity placement, issuing 312.5 million shares at $0.008 per share. The placement included 1-for-2 free attaching options with a $0.022 strike price, expiring February 2027. While the issue price represented a 27.3% discount to the last traded price, analysts believe the discount was justified given the capital-intensive nature of early-stage gold exploration and the potential upside embedded in Boa Vista’s scale.

The placement follows a recent Expression of Interest received from HMS Bergbau AG for offtake from the Sconi Project, signaling continued diversification in both geography and commodity exposure for the Australian critical minerals player.

What regulatory, environmental, and logistical factors affect Boa Vista’s development pathway?

Applications to convert existing exploration licences into mining concessions are already underway. Australian Mines has submitted a Preliminary Economic Assessment that includes mine design, cost estimates, and environmental studies, fulfilling key Brazilian regulatory requirements. Pending approval from the Brazilian National Mining Agency (ANM), these licences could soon progress into full mining concessions.

On-ground access is supported by roads and a compacted airstrip near the project site, and barging remains an option during the wet season. Additionally, exploration permits for ground-disturbing activities are pending but not expected to face delays. The state of Pará offers fiscal incentives for gold producers, including eligibility for a 75% corporate tax reduction under SUDAM’s regional development scheme.

What do institutional investors see as the longer-term value opportunity in AUZ’s dual-asset portfolio?

With a current market cap of just A$13.99 million and a share price of A$0.01, Australian Mines Limited remains a microcap play in the battery and precious metals space. The one-year return of 11.11% reflects investor optimism after recent updates on both the Boa Vista and Sconi projects. Institutional sentiment suggests cautious optimism, with expectations of near-term JORC conversion and feasibility-driven re-rating once drilling confirms scale continuity.

The strategic intent behind pursuing a gold asset in a tier-one jurisdiction like Brazil appears to be de-risking its asset base while maintaining upside exposure to critical minerals. If AUZ can demonstrate continuity of high-grade zones and deliver a JORC-compliant resource exceeding 500,000 ounces, analysts believe it could serve as a transformational event for the stock.

How might Australian Mines position itself within the global gold exploration landscape by 2026?

The next 12 to 18 months will be pivotal. If the VG1 prospect delivers in upcoming drill campaigns, Australian Mines Limited could reposition itself from a niche battery metal explorer to a dual-commodity growth story with jurisdictional diversity. Market observers expect the company to prioritise resource conversion, environmental de-risking, and early-stage metallurgical optimisation. If these boxes are ticked, the Boa Vista Gold Project could evolve into one of the Tapajós region’s most commercially viable bulk-tonnage gold plays by late 2026.