VANCOUVER, BC, Sept. 14, 2020 /CNW/ - Strategic
Resources Inc. (TSXV: SR) (the "Company" or
"Strategic") is pleased to announce an updated mineral
resource estimate for the Company's 100% owned Mustavaara
Vanadium-Titanium-Iron Project, located in the Municipality of
Taivalkoski in north-central Finland. On behalf of Strategic, AFRY Finland
Oy has completed an independent National Instrument 43-101 ("NI
43-101") compliant mineral resource estimate. The mineral resource
estimate is the first NI 43-101 resource for the Mustavaara
Project. Mustavaara is a past producing mine that stopped
production in 1985 after a decade in production due to low vanadium
prices of approximately US$1.50/lb
V2O5 versus the approximately US$7.00/lb spot price today. Annual production
reached a peak of 1.6 million tonnes of ore, producing 240,000
tonnes of pelletized magnetite concentrate and 3,000 tonnes of
vanadium pentoxide.
Scott Hicks, President and CEO
commented, "We are pleased to see a significant vanadium, iron and
titanium resource remaining on the site of this historically
productive mine. This milestone will allow us to complete a
Preliminary Economic Assessment planned for the first half of
2021."
Table 1: Mineral Resource Estimate Summary (11.0% magnetite
cut-off grade)
Resource
Class
|
Million
Tonnes
|
Average
Grade
|
Contained
Metal
|
Magnetite
(%)
|
VinMC(8) (%)
|
Ti(9)
(%)
|
Fe(9)
(%)
|
VinMC(8) (kt)
|
Ti(9)
(kt)
|
Fe(9)
(kt)
|
Measured
|
64.0
|
15.41
|
0.91
|
3.75
|
63.3
|
90
|
370
|
6,244
|
Indicated
|
39.7
|
15.27
|
0.88
|
3.53
|
62.8
|
53
|
214
|
3,805
|
Total
M&I
|
103.7
|
15.36
|
0.90
|
3.67
|
63.1
|
143
|
584
|
10,049
|
Inferred
|
42.2
|
15.11
|
0.92
|
3.75
|
62.3
|
59
|
239
|
3,971
|
Table 2: Sensitivity of Measured and Indicated Mineral
Resource to Cut-Off Grade
Cut-Off
Magnetite
(%)
|
Million
Tonnes
|
Average
Grade
|
Contained
Metal
|
Magnetite
(%)
|
VinMC(8) (%)
|
Ti(9)
(%)
|
Fe(9)
(%)
|
VinMC(8) (kt)
|
Ti(9)
(kt)
|
Fe(9)
(kt)
|
8.0
|
107
|
15.17
|
0.9
|
3.64
|
63.2
|
146
|
593
|
10,281
|
10.0
|
106
|
15.26
|
0.9
|
3.65
|
63.2
|
146
|
590
|
10,291
|
11.0
|
104
|
15.36
|
0.9
|
3.67
|
63.1
|
143
|
584
|
10,049
|
12.0
|
95
|
15.71
|
0.9
|
3.72
|
63.0
|
134
|
555
|
9,394
|
14.0
|
67
|
16.81
|
0.9
|
3.80
|
62.9
|
102
|
430
|
7,115
|
The NI 43-101 mineral resource estimate summary above is
calculated using the base case cut-off grade of 11.0 percent
magnetite. The estimate is based on a total of 9,911 metres of
diamond drilling in 73 holes. None of these holes were drilled by
Strategic, but historic core, rejects and pulps have been
reanalyzed and the historic database has been validated. The
mineral resources are estimated using a three-dimensional block
model with a nominal block size of 20 X 20 X 12.5 metres. Grade
estimates for magnetite, vanadium, titanium and iron are based on
geology, drill hole spacing and geostatistical analysis of drill
hole sample data. The grade models have been validated using a
combination of visual and statistical methods. Blocks in the model
are estimated using five or more composite drill hole samples
within a maximum average distance of 50m, 100m and
200m for the measured, indicated and
inferred mineral resource categories respectively.
A NI 43-101 technical report detailing the mineral resource
estimate for the Mustavaara Project will be completed and filed on
SEDAR (www.sedar.com) and Strategic's website
(www.strategic-res.com) within 45 days.
Mineral Resource Notes and Assumptions
(1) The mineral resource estimate has an effective date of
September 14, 2020. (2) Mineral
resources do not have demonstrated economic viability. (3) The
mineral resources in this estimate were calculated with the
Canadian Institute of Mining, Metallurgy and Petroleum ("CIM"), CIM
Standards on Mineral Resources and Reserves, Definitions and
Guidelines prepared by the CIM Standing Committee on Reserve
Definitions. (4) Metal prices used: Pig Iron, US$350.00 per tonne and Ferrovanadium,
US$30.00 per kilogram. (5) Base case
cut-off grade for the estimate of the mineral resources is 11.0%
magnetite. (6) It is reasonably expected that the majority of
inferred mineral resources could be upgraded to indicated or
measured mineral resources with continued exploration. (7)
Strategic is not aware of any legal, political, environmental, or
other risks that could materially affect the potential development
of the mineral resources. (8) A 30-gram charge of agitated sample
pulp "suspended" in water is separated magnetically as it passes
through a rotating, inclined glass tube. The applied magnetic field
causes magnetic minerals to stick to the tube walls. The weight
percent of vanadium retained in the magnetic fraction is reported
as VinMC (Vanadium in Magnetic Concentrate) and can be correlated
with magnetically recovered vanadium grades in large scale magnetic
separation plants. This work has indicated that the magnetite
content could be upgraded by a factor of six. (9) Ti (titanium) and
Fe (iron) grades and contained metal values are stated in recovered
magnetite concentrate post upgrading.
Quality Assurance
Strategic has completed a rigorous review of the drill hole
database. Past owners of the project have twinned historic holes,
along with performing their own due diligence resampling programs
confirming historic results. Strategic also completed a core and
pulp resampling program from available material incorporating a
quality control / quality assurance ("QA/QC") program that includes
the insertion of blind standards, blanks and pulp duplicate
samples. Geology logs were confirmed with drill core reviews and
core photos. Reanalyzed material was securely transported to ALS
Lab's sample preparation facility in Sodankylä, Finland. Sample pulps are sent to Galway,
Ireland for analysis. Vanadium,
titanium and iron content was determined by lithium borate fusion
and XRF finish. ALS labs is independent from Strategic. Strategic
is not aware of any drilling, sampling, recovery or other factors
that could materially affect the accuracy or reliability of the
data referred to herein.
Qualified Persons
Ville-Matti Seppä, EurGeol. with the European Federation of
Geologists, a Qualified Person as defined by NI 43-101, is
responsible for the estimate of mineral resources presented in this
news release and has reviewed, verified and approved the contents
of this news release as they relate to the mineral resource
estimate. 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 the 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/.
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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 the National Instrument 43-101 resource
and undertaking of a National Instrument 43-101 Preliminary
Economic Assessment. Often, but not always, forward-looking
statements or information can be identified by the use of words
such as "will" or variations of similar words and phrases or
statements that certain actions, events or results "will" be taken,
occur or be achieved.
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SOURCE Strategic Resources Inc.