VANCOUVER, Feb. 10, 2020 /CNW/ - Strategic Resources Inc.
(TSXV:SR) (the "Company" or "Strategic") announces that it
has successfully applied for Reservations over the Mustavaara mine
area in Finland. The Company has
also signed a definitive agreement with the bankruptcy estate of
Ferrovan Oy ("Ferrovan") to acquire all of the intellectual
property, core samples and storage facilities associated with
Mustavaara for €150,000. Closing of the agreement will be subject
to certain conditions, with the main condition being the granting
of fully valid Reservations from the Finnish mining authority,
Tukes. Strategic expects that this should occur in or around the
second quarter of this year.
Scott Hicks, CEO commented, "We
view this as a unique opportunity to acquire a large-scale
brownfields historical resource and a project that was taken to a
Pre-Feasibility Study level in 2012. Mustavaara has the potential
to supply a growing vanadium redox battery market as well as
provide substantial benefits to the Finnish economy. The team looks
forward to building out our portfolio of assets in Finland over the coming years."
Mustavaara Project Description
Mustavaara is a large vanadium-iron-titanium deposit, which was
mined by the Finnish state company Rautaruukki Oy between 1976 and
1985. The Project is located in the Municipality of Taivalkoski,
75km southwest of the city of Kuusamo. The vanadium produced from
Mustavaara and the nearby Otanmäki deposit accounted for
approximately 10% of the world vanadium production at that time.
Mining was suspended due to adverse market conditions and the
processing facilities were dismantled in 2001.
Ferrovan commissioned Pöyry Finland Oy to complete a
Pre-Feasibility Study ("PFS") for the project in 2011. The
resulting 2012 PFS outlined a project that would have a
concentrator near site and a smelting plant located close to the
coast in the city of Raahe.
The PFS was based on a reserve of 97 million tonnes at 13.8%
magnetite and 0.91% vanadium in concentrate in the Probable reserve
category. Prior work indicated that the magnetite content could be
upgraded by a factor of six as a result of the concentrating
process. Consequently, the vanadium grade could also be enhanced
significantly from 0.2% vanadium to 0.9% vanadium (equivalent to
1.65% V2O5). This resource is now considered historical.
Post Closing Work Plan
Strategic plans on commissioning a National Instrument 43-101
compliant resource estimate for the project based on existing
drilling completed to date, surface checks and detailed re-sampling
work. Post the completion of the resource estimate, Strategic plans
to undertake an economic study that reflects current market prices
and cost estimates.
Cautionary Historic Resource Description
The above historical information includes estimates of the
quantity, grade, and metal content of the Mustavaara deposit that
Strategic has not verified as a current mineral resource, and which
was prepared before Strategic entered into an agreement to acquire
an interest in the Mustavaara property. Strategic considers the
historical estimate to be relevant given that the report was done
relatively recently and considers the estimate to be reliable given
the status of the authors of the estimate. Neither Strategic nor
any qualified person engaged by Strategic has done sufficient work
to classify the historical estimate as a current mineral resource;
and Strategic is not treating the historical estimate as a current
mineral resource.
Qualified Persons
Leo Hathaway, P.Geo., Vice
President of Strategic and the Qualified Person as defined by
National Instrument 43-101 Standards of Disclosure for Mineral
Projects for the Mustavaara Project has reviewed, verified and
approved all disclosure of scientific or technical information made
by Strategic herein, including disclosure of a mineral resource,
and the general contents of this news release.
About Strategic Resources
Strategic Resources Inc. (TSXV:SR) is a Vancouver, Canada based mineral exploration
and development company that is focused on vanadium projects in
Finland and Peru. The Company continues to evaluate new
opportunities that are related to the electrification of the
economy.
Further details are available on the Company's website
at https://strategic-res.com/.
To follow future news releases, please sign up
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STRATEGIC RESOURCES INC.
Signed: "Scott Hicks"
Scott Hicks, CEO
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 news release.
Cautionary Note Regarding Forward-Looking Information
Certain statements and information herein, including all
statements that are not historical facts, contain forward-looking
statements and forward-looking information within the meaning of
applicable securities laws. Such forward-looking statements or
information include but are not limited to statements or
information with respect to completing a National Instrument 43-101
compliant resource, undertaking an economic study on Mustavaara and
the completion of the agreement. Often, but not always,
forward-looking statements or information can be identified by the
use of words such as "will", "should" or variations of those words
and phrases or statements that certain actions, events or results
"will" or "should" be taken, occur or be achieved. There is no
assurance Strategic will be successful in completing any of the
transactions on the terms outlined above, or at all.
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content:http://www.prnewswire.com/news-releases/strategic-resources-acquires-the-past-producing-mustavaara-mine-in-finland-301001759.html
SOURCE Strategic Resources Inc.