VANCOUVER, BC, Sept. 14, 2020 /PRNewswire/ - 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)
Table 2: Sensitivity of Measured and Indicated Mineral Resource to Cut-Off Grade
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.
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.
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
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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.
SOURCE Strategic Resources Inc.