Initial 2019 Crater Lake Drilling Results Indicate Encouraging Scandium and Rare Earth Grades Over Significant Widths

Imperial Mining Group Ltd. (TSXV:IPG) is pleased to announce that encouraging initial scandium and rare earth (REE) assays have been received from the first two holes completed during the winter 2019 diamond drilling of the TG Zone target, Crater Lake project, northeastern  Québec (Figure 1).

Highlights:

  • Partial TG Zone drilling results returned up to 48.2 m grading 385 g/t Scandium Oxide (Sc2O3), including 8.8 m grading 528 g/t Sc2O3 and including 12.5 m grading 474 g/t Sc2O3.
  • Elevated levels of total rare earth oxides plus yttrium (TREO+Y) of up to 0.622% characterize the scandium horizon.
  • The entire scandium mineralized package was found to be between 60 and 90 m in true thickness and is open at depth below 200 m down-dip and along strike.

Imperial Mining Group Ltd. (TSXV:IPG) is pleased to announce that encouraging initial scandium and rare earth (REE) assays have been received from the first two holes completed during the winter 2019 diamond drilling of the TG Zone target, Crater Lake project, northeastern  Québec (Figure 1).

A five-hole diamond drilling program for 1,014 m was completed on April 20, 2019 over the TG Zone (TGZ) target to evaluate the scandium potential of a high-intensity magnetic anomaly (Figure 2, Table 2). The new drilling is located 600 m north of a historical drill hole which had returned scandium grades of up to 506 g/t Sc2O3 over 19.0m along the western side of the Crater Lake intrusion on the same magnetic trend. The current results represent partial analyses from the first two holes of the drill program (CL19031 and CL19032, Table 1). Results for the remainder of holes CL19031 and CL19032 as well as CL19033-19035 are pending. The diamond drill contractor was Avataa Rouillier Drilling Inc. of Amos, Quebec.

Table 1 – Crater Lake Drilling Partial Assay Results:

NOTES: – * 1 ppm of Sc metal equals 1.5338 ppm scandium oxide (Sc2O3) ; ** 1 g/t equals 1 ppm

“We are very pleased with the initial diamond drilling results from the winter program, as they confirm that the high-intensity magnetic anomalies tested to date on the property represent areas of significant scandium and rare earth enrichment,” said Peter Cashin, Imperial’s President & Chief Executive Officer. “From the evaluation of our geophysical surveys completed on the property to date, we interpret the scandium-bearing horizon to now be traceable for at least 4.5 km in strike length. The evident increase in scandium grades with depth is also very encouraging, however more work remains to be done to fully quantify the scandium and REE resource potential on the property.”

TG Zone Geology

Drilling has intersected a 60-90 m thick, steeply east-dipping, arcuate Crater Collapse ring-fault zone breccia containing large fragments and clasts of felsic syenite in a matrix of pyroxenite-rich material. The felsic fragments, which contain little to no scandium, can constitute up to 60 % of the rock in the mineralized interval. These can probably be removed after primary crushing using low-cost, ore-sorting technology. The pyroxenite-rich matrix contains all of the scandium and REE in the mineralized system. Individual assays from this material grade as high as 730 g/t Sc2O3. The mineralized zone has been traced from surface to at least 200 m down-dip and remains open at depth and along strike. A 15-20 m wide alteration halo is observed in the rocks adjacent to the scandium mineralized ring structure. There is an apparent increase in scandium grade at depth along the drill section.

In addition to the diamond drilling, two (2), 100 kg bulk samples were collected from the split core and will be sent for metallurgical testing. Initial testwork completed in 2018 by SGS Lakefield indicates that a combination of low-cost gravity and magnetic or electrostatic separation methods will yield a high-grade scandium mineral concentrate from the zone. The bulk samples are currently being prepared for shipment to a Canadian-based metallurgical contractor.

Table 2 – TG Zone Diamond Drilling Locations

Scandium Markets

The broader adoption of scandium in the aluminum alloys sector has been constrained by the limited availability of scandium in western commercial markets from the primary supply sources in China and Russia. The lack of reliable long-term supply sources to provide material for additional applications has also limited scandium market growth. This has resulted in much higher prices for Sc compared to competing alloy materials, such as titanium, and has limited its broader use. The current price of the metal oxide published by USGS indicates that it trades in a range of approximately US$2,000-4,000/kg for 99.99% purity.

Scandium acts as a grain-refiner and hardener of aluminum alloys. Aluminum-scandium alloys combine high strength, ductility, weldability, improved corrosion resistance and a lower density. The combination of all these properties makes aluminum-scandium alloys well-suited for the aerospace, automotive and defense industries. Scandium-modified aluminium alloys is highly valued as an important lightweighting material as it is one-third the weight of steel and is 60 % of the weight of titanium alloys.

As new technologies motivate manufacturers to identify new sources for scandium, the element could be widely adopted by major industries in the years to come. Likely early adopters of scandium-modified aluminum alloys will be the automotive manufacturers seeking to lighten electric vehicle (EV) and combustion-engine cars and trucks to extend battery range and improve fuel efficiency, respectively. Recent data from Nemak, S.A.B. de C.V. (2019), one of the world’s largest automotive OEM, shows that high strength aluminium components is an $11-billion dollar target market by 2025 for them. Estimates show that as much as 0.17 kg of scandium could be required for high-strength and high-temperature applications in new EVs. If 30 million EVs are produced annually by 2030 (Bloomberg, 2018), this could equate to annual demand of 5,100 tonnes of Sc2O3 for this platform alone.

QA-QC Protocol

Strict QA/QC protocols have been implemented for the Crater Lake Project, including the insertion of certified reference materials (standards), duplicates and blanks at regular intervals throughout the sequence of samples.

A total of 179, including 12 QA-QC, samples were sent to an analytical laboratory. All sample preparation and analytical work was carried out by Actlabs at their facilities in Ancaster, Ontario. Several analytical techniques were used to characterize the samples, which are combined at Actlabs into the analytical package “8-REE”. This package includes whole-rock and trace element analytic techniques. Whole Rock analyses are done via a lithium metaborate/tetraborate fusion inductively coupled plasma (ICP) finish. Trace elements are also analyzed by fusion ICP/MS.

The technical content in this press release was prepared, reviewed and certified by Pierre Guay, P. Geo., Imperial’s Vice-President, Exploration, a Geologist and Qualified Person as defined by NI43-101.

ABOUT IMPERIAL MINING GROUP LTD.

Imperial is a Canadian mineral exploration and development company focussed on the advancement of its copper-zinc, gold and technology metals properties in Québec. Imperial is publicly listed on the TSX Venture Exchange as “IPG” and is led by an experienced team of mineral exploration and development professionals with a strong track record of mineral deposit discovery in numerous metal commodities.

For further information please contact:

Peter J. Cashin
President and Chief Executive Officer
Tel: +1 (514) 360-0571
Email: info@imperialmgp.com
URL: www.imperialmgp.com

This press release may contain forward-looking statements relating to the Company’s operations or to its business environment. Such statements are based on the Company’s operations, estimates, forecasts, and projections, but are not guarantees of future performance and involve risks and uncertainties that are difficult to predict or control. Several factors could cause actual outcomes and results to differ materially from those expressed. These factors include those set forth in the corporate filings. Although any such forward-looking statements are based upon what management believes to be reasonable assumptions, the Company cannot guarantee that actual results will be consistent with these forward-looking statements. In addition, the Company disclaims any intention or obligation to update or revise any forward-looking statements, for any reason. We also do not commit in any way to guarantee that we will continue reporting on items or issues that arise. Investors are cautioned that this press release contains quoted historical exploration results. These are derived from filed assessment reports and compiled from governmental databases. The Company and a QP have not independently verified and make no representations as to the accuracy of historical exploration results: these results should not be relied upon. Selected highlight results may not be indicative of average grades. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Photos accompanying this announcement are available at:

https://www.globenewswire.com/NewsRoom/AttachmentNg/2d192bc2-8a6b-4df3-bc04-ead07797b309

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Click here to connect with Imperial Mining Group Ltd. (TSXV:IPG) for an Investor Presentation. 

Source: www.globenewswire.com

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The New South Wales Department of Planning and Environment revoked the mine lease for the Nyngan project, which was issued in 2017, due to a procedural error on its part.

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Aside from the three granted patents, the company has an additional 10 US patents pending, as well as corresponding Australian patents.

Australia-focused Scandium International (TSX:SCY) has received three patents for its proprietary intellectual property designed around the extraction and recovery processes for scandium.

The patents relate to the extraction and recovery of scandium from ores, solutions and byproducts; the conversion of scandium intermediates into master alloy and the composition and manufacturing of certain commercial scandium-containing alloys.

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Catch up and get informed with this week's content highlights from Charlotte McLeod, our editorial director.

Top Stories This Week: Powell Gets Fed Nomination, Using Gold in a Market Correction youtu.be

We're back after a break last week with quite a bit to cover in the gold space.

After running up past the US$1,860 per ounce mark midway through November, the yellow metal has taken a tumble. At the time of this writing on Friday (November 26) afternoon, it was sitting just under US$1,790.

Gold's losses this week have been attributed to elements like a stronger US dollar and better Treasury yields, although Jerome Powell's US Federal Reserve chair renomination has pulled other factors into play — some market watchers believe he may move to taper and raise interest rates faster than anticipated.


If the Fed follows its previously laid out timeline for tapering, it will wrap up in mid-2022; the central bank has said it won't raise rates until after that. It has also emphasized that its roadmap may change if necessary.

Looking at the larger picture for gold, I heard recently from Nick Barisheff of BMG Group, who believes the stock market is due for a major correction.

"The market is due for a major correction. What will cause it and when it will happen is anybody's guess — it could be tomorrow, it could be six months from now" — Nick Barisheff, BMG Group

It's impossible to know when this correction will happen, but Nick emphasized the importance of acting before it's too late. He pointed out that investors are typically slow to get out of the market once a crash actually begins — they wait for a turnaround, and by the time it's clear there won't be one, they've experienced big losses.

In his opinion, the solution is to get out of the stock market early and transfer money into gold.

Here's how Nick explained it:

"Instead of taking your money off the table and going into cash … you go to gold (because cash is devaluing daily). Gold will at least hold its own and probably appreciate … so by sitting it out in gold you can wait until the market finishes correcting and then buy back in" — Nick Barisheff, BMG Group

With gold's future in mind, we asked our Twitter followers this week what price they think the metal will be at the end of 2021. By the time the poll closed, most respondents had voted for the US$1,800 to US$1,900 range.

We'll be asking another question on Twitter next week, so make sure to follow us @INN_Resource or follow me @Charlotte_McL to share your thoughts.

Finally, in the cannabis space, INN's Bryan Mc Govern spoke with Dan Ahrens of AdvisorShares to get his thoughts on 2021 trends and what's ahead in 2022.

Dan was candid, and said if he had to choose one word to describe the cannabis market in 2021, it would be "painful." Like many others, he's been disappointed in the industry's performance — while positivity initially ran high due to excitement about potential federal changes in the US, ultimately progress has been slow.

"Cannabis started with a big run-up in January and February ... and things dragged from there" — Dan Ahrens, AdvisorShares

Still, Dan has hope for 2022 and said it will be a "huge year" for cannabis. He believes US reforms will come sooner rather than later, and in his opinion those widely anticipated changes will bring a wave of M&A activity.

Specifically, he expects to see alcohol, tobacco and other consumer packaged goods companies making deals with cannabis players, not just cannabis entities doing transactions with each other.

"Those big alcohol companies, tobacco companies, other consumer packaged goods product companies — they're waiting. They're waiting on the US" — Dan Ahrens, AdvisorShares

Want more YouTube content? Check out our YouTube playlist At Home With INN, which features interviews with experts in the resource space. If there's someone you'd like to see us interview, please send an email to cmcleod@investingnews.com.

And don't forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

cannabis plant layered with German flag graphic
Dmytro Tyshchenko / Shutterstock

Catch up on some of the biggest news of the week for the cannabis investment world.

Three political parties have formed a coalition in Germany, leading to a new government, and it has promised cannabis reform in the European nation.

Meanwhile, a popular cannabis retailer confirmed consumers will now find its products available for delivery on the Uber Eats mobile application in Ontario.

Keep reading to find out more cannabis highlights from the past five days.


Coalition of parties promises forward-looking cannabis policy

Germany, a country with comprehensive and elaborate medicinal rules for cannabis, is in a time of transition as a new government is set to begin to take over after 16 years of Angela Merkel.

Olaf Scholz, the proposed next chancellor of Germany, leads a three party coalition that will become the country's governing body. As part of its promises, talk of adult-use cannabis regulation has now gained even more momentum. A report from MJBizDaily quotes a German policy document that shows the coalition's stance:

"We are introducing the controlled distribution of cannabis to adults for consumption purposes in licensed shops. This controls the quality, prevents the transfer of contaminated substances and guarantees the protection of minors."

However, despite the promise and excitement, it remains to be seen how these ideas will be applied since no formal regulations have been drafted or approved yet.

Canadian cannabis retailer partners with popular delivery app

Tokyo Smoke, a cannabis retail operator in Canada owned by Canopy Growth (NASDAQ:CGC,TSX:WEED), announced a collaboration agreement with Uber Canada (NYSE:UBER) whereby cannabis consumers will be able to use the Uber Eats app to order products before they visit stores.

While the app won't let consumers get cannabis delivered to them, this new method opens the doors to more dynamic ways of buying cannabis.

"As a market leader in innovation and a platform used by so many Canadians, we believe this is the ideal next offering that can be done safely and conveniently on the Uber Eats app," Mark Hillard, vice president of operations with Tokyo Smoke, said in a press release.

A report from the Canadian Press indicates Ontario is considering allowing dispensaries to have delivery and pickup options made available to consumers permanently. The province allowed some of these purchasing options at the outset of the COVID-19 pandemic, but then removed them.

Lola Kassim, general manager of Uber Eats Canada, said this new end-to-end experience will provide consumers with responsible access to legal cannabis products.

Cannabis company news

  • Organigram Holdings (NASDAQ:OGI,TSX:OGI) issued financial results for its Q4 2021 period. In its report, the company notes a net loss of C$26 million despite a 22 percent uptick in net revenue to C$24.9 million. Beena Goldenberg, the newly appointed CEO of the firm, is encouraged by the market share position earned by the company, which said it became the fourth biggest producer in Canada during the reporting period.
  • Halo Collective (NEO:HALO,OTCQB:HCANF) confirmed the decision for Akanda, its spinoff company focused on international cannabis opportunities, to begin trading on a US exchange. "The number of shares to be offered and the price range for the proposed offering have not yet been determined," the company told investors in a press release.
  • High Tide (NASDAQ:HITI,TSXV:HITI) announced the acquisition of 80 percent of NuLeaf Naturals, a CBD product wellness developer, for an estimated US$31.24 million. The deal includes a three year option clause for High Tide to complete a total acquisition. "As international markets open up and as export regulations evolve, NuLeaf's cGMP-certified facility positions us to take advantage of the global CBD business opportunity," Raj Grover, president and CEO of High Tide, said.
  • Humble & Fume (CSE:HMBL,OTC Pink:HUMBF) released the financial report for its first 2022 fiscal quarter to shareholders and the market. "As the legal cannabis market in North America continues to mature, Humble remains agile and focused on providing a leading solution for brands to scale quickly and retailers to focus on their customers," Joel Toguri, CEO of Humble, said.

Don't forget to follow us @INN_Cannabis for real-time updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

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