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, July 04, 2014 – As a result of a review of Vanadiumcorp Resource Inc.’s news release dated June 24, 2014, by the Investment Industry Regulatory Organization of Canada (IIROC), the company is issuing this news release to clarify and retract disclosure from this aforementioned news release. The June 24, 2014, news release referenced the technical report entitled “The Lac Dore Project an Integrated Vanadium Project in the Lac Dore Complex Chibougamau, Quebec, Canada NI 43-101 Technical Report,” dated June 18, 2014. As the property does not contain a current resource, the property does not meet the definition of an advanced project under National Instrument 43-101. The report does not contain a mineral resource estimate, preliminary economic assessment or pre-feasibility study. However, the report details the non-current historic estimates done by previous owners and outlines the work required to determine if a current resource can be calculated on the project.
The company has made statements concerning production of its Lac Dore project and related timing, which are currently not supported by the report and contrary to NI 43-101 standards of disclosure for mineral projects. The report is a significant step taken by the company. The company is now working on defining a current resource on the project.
NI 43-101 report
Any statements that the report somehow exceeds NI 43-101 requirements are inaccurate and retracted. The report is the first complete and comprehensive review of all exploration and development work spanning more than 60 years archived in more than 200 reports, including eight different historic estimates plus very extensive metallurgical testing.
The report outlines eight different historic estimates from the following firms: Quebec Department of Natural Resources (three studies), SOQUEM, LMBDS-Sidam, IOS Services Geoscientifiques Inc., Cambior Inc. and SNC-Lavalin. These historical estimates were not prepared to CIM definitions and standards. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and the company is not treating the historical estimates as current mineral resources or mineral reserves.
Historic economic assessment
There is no current, NI 43-101-compliant preliminary economic assessment completed on the Lac Dore project, nor is there any assurance that the non-NI 43-101-compliant SNC-Lavalin preliminary economic assessment can be updated. Mandates were given to provide Vanadiumcorp with an NI 43-101-compliant resource calculation, and the decision regarding the initiating of a preliminary economic assessment will be taken upon results of this study at the appropriate time. There is no certainty that the project will be economical upon completing a feasibility study, and any statements which may have suggested such or that the project is advancing toward production is retracted.
Prior metallurgical studies
Extensive metallurgical testing on Lac Dore mineralization was carried out by past owners of the project, whereby production of high-purity (99.99 per cent) vanadium pentoxide has been achieved. The company has not completed this work itself and possesses only parts of the prior metallurgical work. The company intends to complete its own metallurgical testing in the course of the eventual feasibility study. Any statements that suggest the company has completed its metallurgical testing, or can replicate prior metallurgical testing, is inaccurate and retracted.
The Bushveld complex provides the best known analogy to the Lac Dore complex. The Bushveld currently sustains three vanadium producers, and supplies the raw material for production of approximately 18,000 metric tonnes of vanadium final products per year, or about 23 per cent of global vanadium production. The company cautions that there is no guarantee that similar mineralization will be identified on the project.
Budget, timelines and work
The Lac Dore project resource calculation is now under way. Upon completion of this, the company will initiate a preliminary economic analysis with results of this study expected for early 2015. This does not imply that supplementary drilling will not be required to upgrade resources in the event of a feasibility study.
This release was approved by Rejean Girard, PGeo. Mr. Girard is a qualified person as defined by NI 43-101.