Redzone Resources Ltd. [REZ-TSXV; REZZF-OTC; : REZZF] said Monday February 25 that it has acquired 4,438 hectares of prospective vanadium mineral claims near Mackenzie, British Columbia.
The mineral rights were acquired via staking, the company said in a news release.
The property is targeting the extension of high-grade, shale-hosted, vanadium mineralization discovered on the Ethos Project in the immediate northwest of Pine Le Moray Provincial Park.
The unit hosting the mineralization is a Triassic-aged black shale to calcareous mudstone. Triassic stratigraphy on the Redzone property is along strike from the Ethos discovery.
Anomalous stream sediment samples located downstream from the staked block returned 354 parts per million vanadium, the company said.
Vanadium is growing in importance for key industrial manufacturing sectors, notably in steel and renewable energy. More than 85% of the world’s vanadium is used in steel manufacturing applications.
Its importance to the energy sector is also growing rapidly with more than 10% of vanadium production used in energy storage where its substantial cost and performance benefits make it an alternative choice to lithium ion in several areas.
In the last three years, Vanadium prices for 98% flake V2O5 have steadily risen from under US$2 a pound to $27.45.
Redzone is an exploration company with a focus on metals that make up and support the rapid evolution to battery power.
It is involved in three key projects. They are the Fortner Boyd Lithium property in Arizona, the Lara copper project in Peru, and the North-West Leinster Lithium Property in Ireland.
Redzone recently added the Wells Vanadium Project. It consists of two mineral tenures, covering 1,225 hectares and located 20 km southeast of the restored historic gold rush town of Barkerville, B.C. Access to the property is by 35 km of logging roads.
Previous work by a company, formerly known as Cominco Ltd., analysed 44 rock samples, collected over a 2-km by 1-km area, for their vanadium content. The results are noted in a B.C. assessment report.
Eleven samples were found to contain greater than 1,000 ppm vanadium and values ranged up to 1,852 ppm (0.33% V2O5). The mineralization is found in phospatic black clastic sediments of the Black Stuart Formation.
Those results from previous programs were collected in the 1980s, prior to implementation of NI 43-101.
To acquire 100% of the Wells vanadium property, Redzone agreed pay $10,000 on signing and deliver 150,000 shares. Over the next four years, the company must pay another $90,000 cash and deliver 950,000 shares.
The property is subject to a 2% net smelter royalty that can be reacquired for $1 million. Redzone has the option to exit the purchase agreement at any time prior to the fourth anniversary of signing.
On Monday, Redzone shares were unchanged at 12 cents. The 52-week range is 53 cents and 6.5 cents.