Mustavaara Development Project
| Location: | Finland |
| Mineral: | Iron, Titanium, Vanadium (Fe - Ti - V) |
| Property Size: | 356 Hectares |
| Stage of Development: | Advanced Stage, Past-Producing Mine |
| Current Work Program: | Scoping Study, on-going metallurgical testing |
| Potential: | Potential 100+ million tonnes (Project currently contains 30 million tonnes at 16.8% magnetite and 0.91% Vanadium - NI 43-101 Compliant Measured Resource) |
| Ownership: | up to 70% |
Property Description
The Mustavaara mine is located 40 km north of the town centre of the municipality of Taivalkoski on the boundary of the Oulu and Lappi provinces in central Finland. The property consists of 4 exploration claims totaling 356 hectares in area and can be accessed by paved road. A tailings basin and water reservoir are on site and the current terminus for the railway is 40 km south at Taivalkoski.
Property History
The Mustavaara deposit was discovered in 1957. Drilling from 1967 to1971 outlined the deposit with the production decision in 1971. The mine was in operation during the 1970s and the 1980s by Rautaruukki Oy. In 1978 the Mustavaara mine employed 300 people and was the largest producer of vanadium pentoxide in Western Europe, accounting for some 10% of the global supply of vanadium. Annual production averaged 1.4 million tonnes of ore producing up to 240,000 tonnes of magnetite concentrate and 3,000 tonnes of vanadium pentoxide. The mine closed in 1986 due to low metal prices, subsequently all plant facilities were removed from the site.
Property Geology
The Mustavaara ore deposit is located within a 19+ kilometer long and up to 5 kilometer wide layered mafic intrusion (the Portivaara intrusion) of the Koillismaa Complex that dips 35 degrees to the northwest.
The ore body within the planned open pit is 40-60 meters thick within a magnetite horizon that is approximately 160 meters thick. The ore occurs as magnetite disseminations in a gabbro host with an approximate magnetite grade of 16.8% over the proposed mining widths. Watts, Griffis and McOuat Limited ("WGM"), a Toronto-based international consulting geological and engineering firm, with considerable experience and expertise in the evaluation of Iron-Titanium-Vanadium deposits, note that, "The Vanadium content of the magnetite concentrate at 0.91% or 1.65% V2O5 is high grade compared to other vanadium mines currently in production and is a competitive strength of the project."
The reported remaining Measured Mineral Resource at Mustavaara is 30 million tonnes at an average grade of approximately 16.8% magnetite with a 0.91% vanadium content. The Mineral Resource is based on a cutoff grade of near 11.9% magnetite with a 0.75% vanadium content. The estimate is based on the titaniferous magnetite/vanadium layers projected down to below the +100 m level. Additional drilling by Rautaruuki shows that mineralization is open at depth and along strike.
Previous Work Completed
WGM carried out a site visit to gather and analyze independent samples and prepare an initial technical review of the property. This review focused on evaluating the historic mineral resource/reserve estimates for the Mustavaara Vanadium mine and the previous operating parameters and saleable products.WGM's investigation substantiates both the original Mineral Resource/Reserve estimate and the reported remaining Mineral Resources at Mustavaara.With the outcome of WGM's report, the Company has begun implementing the recommended two phase work plan.
Phase I, which began in September 2006, encompasses the extraction of a 1,500 kilogram representative sample from the bottom of the pit for beneficiation tests and bench scale pyrometallurgical studies. The goal is to arrive at a process by which iron, titanium and vanadium can be extracted as separate saleable products required to make the project more economically attractive.
Current Work Program
In May 2007, concurrent with the ongoing Phase I tests, the Company commenced a full scoping study to further evaluate the economics of the mineral reserve at Mustavarra. The Scoping study will consist of more review of resources, future mine development, beneficiation, metallurgical processing, transportation, waste disposal, infrastructure and product disposal.