Mar 2 2015
Vanadiumcorp Resource Inc. (the "Company) is pleased to announce that it has received the mineral resource estimation for the Lac Dore Vanadium Project located in the Province of Quebec, Canada near the mining town of Chibougamau.
The present estimation is based on the assay results from the magnetite concentrate only (Davis Tube). Inferred resource of the "Lac Dore East" deposit is estimated as 28,444,000 tonnes of magnetite concentrate grading 1.09% V2O5. When presented in term of overall tonnage, this Inferred resource represents 111,934,000 tonnes (not only concentrate) grading 0.42% V2O5. This figure is consistent with previous estimations. The equivalent recovery factor from the magnetite concentrate to mineralization is calculated at 66.6%. Recovery of V2O5 from magnetite concentrate is considered at 95%. The "Lac Dore East" deposit is one of two known deposits ("Lac Dore East" and "Lac Dore West") within the mafic-ultramafic intrusion representing half of the total strike length of 3.5 kilometres within the Company's Lac Dore Project.
The estimation was performed from November 2014 to February 2015, Mr. Christian D'Amours of Geopointcom (OGQ #226) being responsible for the estimate, and Mr. Réjean Girard (OGQ 3521) from IOS Services Géoscientifiques being responsible for the data validation. The database includes holes drilled by the Québec Natural Resources Department in 1970', SOQUEM in 1980', trenching and drilling conducted by McKenzie Bay Resources from 1997 to 2002, and Apella Resources (now VanadiumCorp) in March 2013. All available historical data was verified, (re-surveyed in the field or re-assayed when necessary) validated and corrected by Réjean Girard, who was involved with the project since 1997. Historical, non-compliant NI 43-101 Resources were previously estimated by Cambior in January 1999 and by SNC-Lavalin in April 2002. The effective date for the current resource estimate is February 26, 2015.
The actual Geotic / MS Access database contains 83 historic surface diamond drill holes and trenches for 14,559m of core (trenches being considered as core equivalent). A total of 2,880 historic samples were assayed for V2O5, Fe2O3, TiO2 and SG using various methods. The majority of these were coded in regard of lithologies. Most of the intervals with significant headgrade assays were tested with a Davis tube in order to obtain the magnetite content. For such, in most instances, headgrade samples were combined in longer intervals, for 3,751 concentrates, which were assayed for V2O5, Fe2O3 and TiO2. Resource estimates are based solely on results from the Davis tube on composite samples, with SG taken from individual samples. Headgrade estimation is back-calculated from resources based on Davis tube results.
The mineral resource estimate and geostatistical study was performed using Isatis (V.14.02) software. The method involves a 3D block model of 10m X 10m X 11.9m estimated by Ordinary Kriging (OK). Then an iterative procedure allowed for selecting cells and optimizing the pit design. The resource estimation is based on an open pit mining method (50o slope) up to a maximum depth of 200m. Block selection is based first on minimum magnetite abundance of 15%, then on V2O5 grade of the magnetite over the cut-off grade.
Cutoff grade was estimated from the breakeven point between total cost and revenue generated by a resource block. In the current estimation, milling and processing costs vary with the abundance of magnetite, while the revenues are dependent on the vanadium grade in the magnetite concentrate processed by alkali roasting. Thus, the cut-off grade is not a static number, it was adjusted for each blocks. The scenario retained a market value of $5.50 per pound of metallurgical grade V2O5. Scenarios were also calculated using $4.00 and $7.00per pound of V2O5 for comparative purposes. The cut-off grade, and therefore the resource estimate, will have to be re-evaluated in light of prevailing market conditions and other factors including exchange rate, mining method and other related costs.
The resource classification definitions used for this report are those published by the Canadian Institute of Mining, Metallurgy and Petroleum in their document "CIM Definition Standards for Mineral Resources and Reserves" dated of November 27, 2010. Procedures and classification used are outlined in an updated technical report by Mr. D'Amours and Mr. Girard that will be filed within 45 days on SEDAR.