Gaspesie, Societe d’Exploration (ME) says it has signed an option to acquire, within three years, an ilmenite deposit containing a minimum of 10 million tons of ore grading 20% titanium oxide (TiO2).
The deposit, amenable to open pit mining methods, is situated at St-Hyppolite, 60 km north of Montreal.
Under the agreement, Gaspesie must pay the owner of the property $10,000 by the end of this year. Within three years, rights to the property will be transferred to a new company. Initially owned 66.6% by Gaspesie and 33.3% by the current claimholder, the new company will have the option to buy the surface rights in exchange for $80,000 and a royalty of $1 for every ton of ore mined.
Metallurgical tests completed by Lakefield Research demonstrate that a concentrate containing 37% TiO2 can be produced from the deposit. Titanium oxide is under increasing demand as a pigment in the fabrication of painting, paper and plastics.
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