Privately held McKenzie Bay Resources, based in Brighton, Mich., has reached an option agreement with Quebec government-owned Soquem to develop the eastern portion of the Dor Lake vanadium and titanium deposit, near Chibougamau, Que.
McKenzie can earn a 50% interest by spending $1.5 million over five years or completing a bankable feasibility study and spending at least $500,000.
Upon receipt of the study, Soquem would have the option of selling its remaining half interest to McKenzie.
The eastern portion is one of three similar mineralized bodies in the upper part of the Dor Lake layered complex. The other two, in the west and southwest, are wholly owned by McKenzie Bay.
Based on a 1971 government report, the resource is estimated to consist of: 39 million tonnes grading 0.57% V2O5, 9.8% TiO2 and 34.5% iron in the east; 37 million tonnes of 0.48% V2O5, 9.46% TiO2 and 30.53% iron in the west; and 41 million tonnes of 0.48% V2O5, 8.46% TiO2 and 29.19% iron in the southwest.
McKenzie Bay, acting as operator during the option period, is assembling personnel for summer work on the project.
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