Voyager Metals up 39% on Quebec PEA results

Voyager Metals Inc. [VONE-TSXV] shares rallied strongly n Monday after the company released results from a preliminary economic assessment (PEA) for tis Mont Sorcier iron and vanadium project near Chibougamau, Quebec.

The company says 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 said.

Voyager shares rallied on the news, rising 39.1% or $0.045 to 16 cents on volume of 134,000. The shares are currently trading in a 52-week range of 26.5 cents and 10 cents.

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.

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.

Based on the PEA, Mont Sorcier is expected to generate US$348 million in earnings before interest, tax, depreciation and amortization (EBITDA) and annual free cash flow of $235 million over a 21-year mine- life.

The initial capital cost estimate of US$574 million, includes a US$118 million contingency. Additional upside is foreseen due to the potential to expand development from the current North Zone inferred resources and South Zone indicated and inferred resources.