Electric Royalties sees resource upside at Quebec vanadium project
Electric Royalties Ltd. [ELEC-TSXV, ELECF-OTCQB] said its royalty interest in Voyager Metals Inc.’s [VONE-TSXV] Mont Sorcier iron and vanadium project near Chibougamau, Quebec is expected to generate average annual royalty revenues of between US$750,000 and US$1.5 million annually.
The estimate is based on a production scenario that is outlined in Voyager’s preliminary economic assessment (PEA). The PEA envisages payable vanadium credits of US$15 to US$30 per tonne.
Electric Royalties holds a 1% gross metal royalty on vanadium production at Mont Sorcier, which is expected to have a 21-year operating mine life
The PEA outlines a robust economic assessment for Mont Sorcier based upon a traditional open pit mining scenario with magnetic separation processing and a reverse flotation circuit to produce approximately 5.0 million tonnes per annum of low sulphur, vanadium rich iron concentrates, with low levels of impurities.
“Based on test work to date, this material is amenable for blast furnace use in either China or Europe,” the company said. “The general project development plan outlined in the PEA is in line with the potential development scenario being contemplated by Voyager management as it advances towards completion of a feasibility study targeted for the first quarter of 2023,’’ the company has said.
The Mont Sorcier iron ore property hosts a large iron resource with a significant amount of extractable vanadium located 18 kilometres from Chibougamau by road. It is situated in a region with a long history of mining. Robust infrastructure is in place to support future development, including all-season roads, low-cost provincial hydro-power and proximity to a rail connection with access to ocean-going ports.
Mont Sorcier consists of the North and South deposit, both of which feature exceptionally low titanium content, allowing for simple extraction of vanadium metal by a blast furnace, making the deposit unique in world markets.
The PEA uses only the measured and indicated resource in the project’s North Zone. “This leaves significant upside potential from the conversion of inferred resources in the future,’’ said Electric Royalties CEO Brendan Yurik. “The project is well positioned to leverage the production of premium high-grade magnetite iron concentrate with valuable vanadium credits,’’ he said.
According to a NI-43-101-compliant estimate released in June, 9, 2022, the North Zone includes 559 million tonnes of indicated resources grading 28.2% magnetite and 507 million tonnes of inferred resources grading 25.98% magnetite.
The company has said the North Zone indicated resource has the potential to produce 163 million tonnes of magnetite concentrate grading at least 65% Fe and 0.52% vanadium pentoxide (V205).
The South Zone contains and indicated resource of 119 million tonnes of grade 25.6% magnetite and 88 million tonnes of inferred resources grading 23.5% magnetite.
Electric Royalties has a growing portfolio of 20 royalties, including one that generates revenue. On September 12, 2022, the shares closed at 24.5 cents and currently trade in a 52-week range of 45.5 cents and 13 cents.