Serra Azul is believed to be the only saprolite deposit in Brazil suitable for export to ferronickel smelters, and one of the few available worldwide. It is located only 400m from the Santa Rita deposit. The current Indicated Resource at Serra Azul is as follows:

To develop a mining operation that ships saprolite ore directly from the Serra Azul project to ferronickel smelters, the Company must enter into an off-take agreement with a ferro nickel smelter and following completion of an offtake agreement, arrange mining, trucking and port handling. Commercial discussions with potential offtake partners are continuing. Further detail about Serra Azul is contained in the company's announcements.