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, June 02, 2015 – Vanadiumcorp Resource Inc.’s National Instrument 43-101 technical report, titled “Lac Dore Vanadium Project with First Resource Estimate,” has been amended and filed to reconcile any material differences between the report and the company’s Feb. 26, 2015, news release, as required under Section 4.2(5)(b) of NI 43-101.
IOS Geoscientifique Inc. and Geopointcom Inc., the authors, have completed amendments to the NI 43-101 technical report disclosing the first resource estimate for the Lac Dore vanadium project. Calculations indicate the presence of an inferred resource at 99,104,000 tonnes grading 0.43 per cent V2O5 (vanadium oxide). This resource represents 26,067,000 tonnes of magnetite concentrate grading 1.08 per cent V2O5. The estimation is based on assay results from the magnetite concentrate by Davis tube testing, rather than more conventional head-grade assays. The Lac Dore project comprises 100-per-cent-owned mining claims spanning 45 square kilometres located 30 kilometres southeast of the mining town of Chibougamau in central Quebec, Canada.
The resource estimate was adjusted from disclosure in the company’s Feb. 26, 2015, news release, as indicated in the news release dated April 13, 2015. Other material changes include the removal of any references in regard to mining rates and recommendation on processing methods, as this discussion is reserved for the continuing preliminary economic assessment. Additional vanadium pricing data were also added to the report, providing clarity for the selected pricing used for the resource estimation.
Influence of market price on the Lac Dore resource estimate
RESOURCE SENSITIVITY TO MARKET PRICE Market price of V2O5 ($USD/pound) $4.00 $5.50 $7.00 Mineralization (metric tonne) 68,798,000 99,104,000 111,209,000 Waste (metric tonne) 103,808,000 165,690,000 205,388,000 Magnetite concentrate (metric tonne) 19,633,000 26,067,000 28,844,000 Ratio (waste/ore) 1.51 1.67 1.85 V2O5 (metric tonne) 226,090 282,370 303,660 Recoverable grade of the concentrate (% V2O5) 1.15% 1.08% 1.05% Equivalent grade of the mineralization in place (66.6-per-cent 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 metres with a 50-degree slope, a cut-off magnetite abundance of 15 per cent with mining costs set at $1.80 per metric tonne, magnetite concentration cost at $2.50 per metric tonne and roasting cost set at $40 per metric tonne of magnetite, based on industry standards. A market value of $5.50 (U.S.) per pound of V2O5 represents the last three-year average but is also close to the stable average pricing for the last 10 years.
The resource classification definitions used for this report are those published by the Canadian Institute of Mining, Metallurgy and Petroleum in its latest document, “CIM Definition Standards for Mineral Resources and Reserves,” dated May 10, 2014. Procedures and classification used are outlined in the report by Christian D’Amours and Rejean Girard that is now filed on SEDAR and available at the company’s website. Resources were classified as inferred, based on the fact they were calculated from historic drill holes only with their intrinsic uncertainties.
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 Dore project to fulfill the growing need. The report states: “The increasing dependency of supply of vanadium demand in [the United States] and Canada from unstable or government-oriented jurisdictions like Venezuela, South Africa, Russia and China is of great concern.” and “Vanadium has long been considered as a strategic metal by the American government. North American vanadium consumption out paces production by 10,000 [tonnes] annually.”
The report also offers a review of the extensive historic metallurgical testing, with a description of the various recovery processes.
Adriaan Bakker, chief executive officer of Vanadiumcorp, stated: “This is a landmark step in advancement for the Lac Dore vanadium project. Nearby infrastructure, coupled with strong community and government alliances, support the development of the Lac Dore project. High-quality mineralization truly distinguishes the Lac Dore as it is devoid of superficial oxidation with amenability to produce clean magnetite concentrate. Most existing vanadium producers worldwide struggle with significant production costs from metallurgical difficulties directly attributed to highly oxidized ore and high levels of residual silica in the concentrate. The positive metallurgy of Lac Dore was further demonstrated by the Davis tube method used for calculating the current resource. Size and grade of resource, positive metallurgy, near-surface access, location, infrastructure, and burgeoning global demand all provide Vanadiumcorp the confidence to proceed with a preliminary economic assessment (PEA) as its next stage of development.”
The full budget of the Lac Dore PEA is outlined in the report.
Because of the filing date, the report does not address the recent surge in vanadium pricing due to two of the most significant global vanadium producers, Vanchem and Evraz Highveld in South Africa, abruptly halting production indefinitely due to supply depletion and financial issues.
Christian D’Amours, PGeo, Geopointcom Inc., a qualified person as defined by NI 43-101, is responsible for the Lac Dore resource estimation and has read and approved the technical information contained in this news release.
Rejean Girard, PGeo, president of IOS Geoscientifiques Inc., a qualified person as defined by NI 43-101, is responsible for the NI 43-101 technical report and has read and approved the technical information contained in this news release.
On behalf of the board of VanadiumCorp:
Adriaan Bakker, President and Chief Executive Officer
For more information, contact VanadiumCorp:
John Hewlett, Director, Business Development
By phone: 604-560-8251
By email: firstname.lastname@example.org
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.