Related News: Doré Copper is pleased to announce that it has completed an option agreement with VanadiumCorp Resource Inc. and has earned a 100% interest in the Cornerback Property, which totals 2,100 hectares and surrounds the Company’s flagship Corner Bay high-grade copper-gold project located in the southern portion of the Chibougamau mining camp, Québec.
VANCOUVER, BRITISH COLUMBIA – April 13, 2015 – VanadiumCorp Resource Inc. (TSX-V: “VRB”) (the “Company”) is pleased to announce that IOS Geoscientifique Inc. and Geopointcom Inc. have completed the NI 43-101 technical report (the “Report”) disclosing the first resource estimate for the Lac Doré Vanadium Project. A complete copy of the Report can be found at www.sedar.com. The Lac Doré Vanadium Project is comprised of 100% owned mining claims spanning 45 km2 located 30 km southeast of the mining town of Chibougamau, in central Québec, Canada.
Calculation indicates the presence of an inferred resource at 99,104,000 tons grading 0.43% V2O5. This resource represents 26,067,000 tons of magnetite concentrate grading 1.08% of recoverable V2O5, for a mine life of 36.8 years. The estimation is based on assay results from the magnetite concentrate by Davis tube testing, rather than the more conventional headgrade assays. A recovery factor of 95% was used for the hydrometallurgical process, according to historical testing, but no recovery was factored in for magnetite concentration since calculation is made directly from concentrates. An overall 66.6% recovery on headgrade was calculated back. In completing the Report, adjustment of the pit was made to increase pit optimization and accuracy. This was achieved by resolving uncertainty with a claim boundary to increase confidence in the resource estimate. The result was a small decrease in overall tonnage and an increase in grade from the initial resource statement disclosed in the Company’s news release dated February 27th, 2015.
Adriaan Bakker, CEO of VanadiumCorp states, “This is a landmark step in advancing the Lac Doré Project to production. The Report utilizes over 50 years of work to validate significant tonnage, significant mine life, good metallurgy, production scenarios and comparisons to leading global producers. Of key importance is the confirmation of high quality mineralization with low impurities such as low silica (<1%). Our main objective is to establish the ability to produce high purity vanadium products at the mine, and keep that added value in Canada. Nearby infrastructure coupled with strong community and government alliances bode very well for the production potential of Lac Doré. VanadiumCorp has established a world class vanadium resource in mining friendly Quebec, positioning the Company as the supply solution for vanadium in North America.”
Influence of market price on resource estimates:
|Resource Sensitivity to Market Price|
|Market Price V2O5 ($USD/pound)||$4.00||$5.50||$7.00|
|Mineralization (Metric Ton)||68,798,000||99,104,000||111,209,000|
|Waste (Metric Ton)||103,808,000||165,690,000||205,388,000|
|Magnetite Concentrate (Metric Ton)||19,633,000||26,067,000||28,844,000|
|Strip Ratio: Waste / Magnetite||1.51||1.67||1.85|
|Recoverable V2O5 Tonnage (Metric Ton)||226,090||282,370||303,660|
|Grade of the Magnetite Concentrate (%V2O5)||1.15%||1.08%||1.05%|
|Eq. Grade of the resource (66.6% net recovery)||0.49%||0.43%||0.41%|
The parameters used for the resource estimation of the East Deposit included usage of ordinary Kriging method with omnidirectional variograms. A pit depth of 200 m with a 50o slope, a cut-off magnetite abundance of 15% with mining costs set at $1.80/ metric ton, magnetite concentration cost at $2.50/ metric tonne and roasting cost set at $40/ metric ton of magnetite based on industry standards. A market value of $5.50USD per pound of V2O5 was chosen representing the stable average pricing for the last ten years. Mining rates were constrained by the capacity of a conventional rotary kiln 5 metres in diameter, which represent the current maximum technically achievable.
Highlights of the Resource Estimate include:
- Hydrometallurgical recovery: 95%, already factored in the resource estimate.
- Inferred resource tonnage: 99,104,000 metric tonnes @ 0.43% V2O5
- Waste tonnage: 165,690,000 metric tonnes
- Mining life: 36.8 years
- Pit ratio: 1.67 to account for waste removal.
- Magnetite content: 26,067,000 metric tonnes or 26.3%
- Recoverable vanadium grade in magnetite: 1.08% V2O5
- Total recoverable vanadium: 282,370 metric tonnes V2O5 or 621 million pounds
- Roasting throughput: 82 tonnes per hour, or 708,000 tonnes per year
- Milling rate: 2,692,000 tonnes per year
- Mining rate: 7,188,000 tonnes per year, including waste removal
- Vanadium pentoxide production of 7,700 tons per year.
Beneficiation tests on the Lac Doré magnetite were successfully conducted by at least eight different groups or laboratories, meaning that this part of the process is well mastered. Extensive metallurgical testing on Lac Doré mineralization was carried out by past owners of the project, and indicates clearly the suitability of the mineralization to beneficiation, and the recoverability of vanadium by conventional alkali-roasting as well as smelting processes. Both tested routes, alkali roasting and intensive fusion, have been commercially operated worldwide upon similar ore for more than 50 years and are proven technologies. Laboratory and pilot plant tests on Lac Doré mineralization were carried out by various independent laboratories, which indicated clearly that the mineralization behaves similarly to other vanadiferous-magnetite deposits in production in South-Africa, China and Russia.
The report describes in detail the market potential for Vanadium strengthened steel and vanadium batteries in North America, the need for adequate domestic supply and the potential for the Lac Doré project to fulfill the growing need are clearly indicated. The Report states, “The increasing dependency of supply of vanadium demand in USA and Canada from unstable or government oriented jurisdictions like Venezuela, South Africa, Russia and China is of great concern. No strategic stockpile is available anymore in United States.” “Vanadium has long been considered as a strategic metal by the American government. North American vanadium consumption out paces production by 10,000 tons annually.” By comparison, the Lac Doré project would produce about 7,700 tons annually.
The resource classification definitions used for this report are those published by the Canadian Institute of Mining, Metallurgy and Petroleum in their document “CIM Definition Standards for Mineral Resources and Reserves” dated of November 27, 2010. Procedures and classification used are outlined in theReport by Mr. D’Amours and Mr. Girard that is now filed on www.sedar.com and available at www.vanadiumcorp.com. Resources were classified as “inferred” based on the fact they were calculated from historic drill holes only with their intrinsic uncertainties.
VanadiumCorp is a rapidly growing strategic metals company with projects in Quebec, Canada. VanadiumCorp has a vision to become the only primary producer of Vanadium in North America. The current growth strategy is focused on development of its most advanced project in mining friendly Quebec, Canada, the Lac Dore Project. VanadiumCorp is targeting production of metallurgical grade vanadium pentoxide as well as high purity vanadium chemicals for the battery industry. Vanadium is the number-one steel strengthener in the world and is internationally acclaimed as an essential component of the “ultimate energy storage solution,” Vanadium batteries. The Lac Dore Project, coupled with the Company’s Iron-T Vanadium Project are both adjacent to nearby infrastructure and position VanadiumCorp at the forefront of global vanadium development. VanadiumCorp’s experienced management and technical teams are dedicated to project development and building shareholder value.
This release was approved by Mr. Rejean Girard, P. Geo. Mr. Girard is a qualified person as defined by National Instrument 43-101. The portion related to the resource estimation also been approved by Mr. Christian D’Amours, P. Geo, a qualified person as defined by National Instrument 43-101.
On behalf of the board:
Adriaan Bakker, President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.