Imperial Mining Group (IPG-V) assays from its Crater Lake scandium project in Northern Quebec. The results, from one of eight holes drilled this summer on the TG zone, showed a 79.7-metre interval averaging 311 grams of scandium oxide per tonne plus 0.326 per cent total rare earth oxides plus yttrium.
Assays are pending for the rest, but the company is already cheering that all eight holes in the 1,663-metre program encountered the targeted rock hosting scandium on the property. For now, the company says that the holes encountered true thicknesses of the desired rock, ranging between 78 metres and 105 metres. Further, says Mr. Cashin, president and chief executive officer, the mineralization, which is open at depth and along strike, appears to be a thickening, conical body when viewed in cross-section.
Mr. Cashin and his crew applauded a preliminary economic assessment for the TG part of Crater Lake in June. The dream sheet contemplated 7.3 million tonnes indicated at 282 grams per tonne of scandium oxide and modest amounts of rare earth oxides, with another 13.2 million tonnes inferred at 264 grams per tonne and comparable rare earth grades.
The study is not for potential backers who are weak of heart. The capital cost came in at just over $600-million for a 25-year mine rated to run at roughly 1,200 tonnes per day. The bottom line was attractive -- dream sheets are rarely otherwise -- with an internal rate of return of 32.8 per cent and a discounted net present value of $1.72-billion after taxes.
Mr. Cashin says that the 2022 drill program was designed to infill the inferred resource sufficient to upgrade most of it to indicated. That, of course, would allow the company to upgrade its dream sheet to the prefeasibility level and beyond. For now, there is no real mention of moving on to feasibility, although Mr. Cashin is touting optimization opportunities.
by Will Purcell |
