Crater Lake Summer Drilling Results Confirm Strong Scandium Resource Potential of the TG Mineralized Zone
Crater Lake Summer Drilling Results Confirm Strong Scandium
Resource Potential of the TG Mineralized Zone
Highlights:
• TG Zone drilling intersected intervals grading up to 253 g/t Scandium Oxide (Sc2O3) over 29.14 m, including
9.3 m grading 299 g/t Sc2O3 and 21.69 m grading 271 g/t Sc2O3 including 9.16 m grading 299 g/t Sc2O3.
• The scandium rich zone also contains e levated levels of total rare earth oxides plus yttrium (TREO+Y)
grading up to 0.419%.
• The scandium mineralized zone is estimated to be up to 110 m in true thickness and continues to be open at
depth below 200 m down-dip and along strike.
MONTREAL, QUEBEC — November 4, 2020 – Imperial Mining Group Ltd. ("Imperial") (TSX
VENTURE: IPG) is pleased to announce that significant scandium (Sc) and rare earth (REE) assays have
been received from its surface exploration and diamond drilling summer program completed at the Crater
Lake Scandium project, northeastern Québec (Figure 1 , Table 1 ). The work confirmed the important
economic potential of the previously defined TG Zone and has identified two, new high -potential
Scandium-rare earth targets at STG.
Table 1 - TG Zone Drilling Significant Assay Results:
Hole # From
(m) To (m) Interval
(m) Sc (ppm) Sc2O3
(ppm)
TREO+Y
(%)
Magnet
REO (%)
CL20037 127.81 156.95 29.14 165 253 0.305 24.3
Including 127.81 134.11 6.30 180 276 0.316 24.1
Including 136.31 145.61 9.30 195 299 0.317 24.3
CL20037 173.05 190.70 17.65 194 298 0.332 24.4
CL20037 207.82 218.52 10.70 152 233 0.389 24.4
CL20037 225.97 247.66 21.69 177 271 0.419 23.9
Including 238.50 247.66 9.16 195 299 0.445 24.0
NOTES: - 1 ppm of Sc metal equals 1.5338 ppm scandium oxide ( Sc2O3) ; 1 g/t equals 1 ppm . TREO+Y includes
oxides of La, Ce, Pr, Nd, Sm, Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb and L u plus Y. The Magnet REOs include the total of
oxides of Nd, Pr, Dy and Tb as a percentage of the TREO+Y.
“We are very encouraged by our summer exploration results, as they confirm the strong scandium and rare
earth potential of the TG and ST G mineralized zones,” said Peter Cashin, Imperial’s President & Chief
Executive Officer. “In addition, new detailed magnetic survey results over t he ST G and TG areas
significantly improved our understanding of the geometry of the known areas and identified two new, high-
priority targets 280 east of and to the south of, the STG Zone. The evident increase in scandium grades with
depth is also very enc ouraging, however more work needs to be done to fully quantify the scandium and
REE resource potential on the property, particularly over the TG area. The summer results will be used to
plan a winter definition drilling program on the TG Zone that will allow Imperial to report a NI 43-101-
compliant resource in H1 2021.”
SUMMER EXPLORATION PROGRAM RESULTS
A program of magnetic geophysical surveys, surface geological mapping and prospecting was undertaken
over previously little-explored areas on the property. The work was followed up by a small test diamond
drilling program to evaluate the Sc -REE potential of these new targets as well as to undertake step -out
drilling of the known TG Zone (see Imperial Press Release: May 22, 2019). In total, four drillholes totaling
676 m were completed (Figure 2).
Ground Geophysical Survey
In late July 2020, a detailed GPS-positioned ground magnetic survey at 50-m line spacings, covering 130
line-km, was completed on the western half the property (Figure 2). The survey was performed by Abitibi
Geophysique of Val d'Or, QC and completed on August 7th, 2020. Scandium and rare earth mineralization
is associated with a strongly magnetic rock unit called ferrosyenite.
This work provided better definition of the scandium -bearing ferrosyenite rock units and radial fault
structures controlling the concentration of scandium mineralization on the property. New parallel, strongly
magnetic bodies were defined east and south of the STG Target . The survey also identified a continuous
magnetic lineament extending between the TGZ and STG Targets, potentially identifying new scandium
targets. Some of these new targets will be tested in future drilling programs.
Prospecting and Mapping Program
A prospecting and mapping program over unexplored parts of the property involving 38.2 km of
reconnaissance traverses was also completed. Rock (grab) samples collected along with 304 historical core
samples and 17 new channel samples will be used for detailed mineralogical and geochemical study work
at McGill University in Montreal, Quebec. This 5 -week program was conducted by Imperial and
Exploration Sans Frontière of Sept-Iles, QC crews between July 30th to September 2nd, 2020.
Strongly magnetic, iron-rich boulders of ferrosyenite were found at the Hilltop Target area and 300 m
northeast of the STG Target , east of the outcropping scandium-mineralized ferrosyenite at the STG.
Analytical results from the boulder sampling are pending.
Diamond Drilling Program
A four-hole, 676 m diamond drilling program was undertaken between August 14th and August 31st, 2020.
This drilling tested the scandium potential of high -intensity magnetic anomalies at the STG, TGZ and
Northern Target areas (Figure 2, Table 2). The contractor for this work was Avataa Rouillier Drilling Inc.
of Amos, Quebec.
Hole CL20036: tested a strong magnetic anomaly parallel and west of the STG target (previously returned
surface channel grades up to 7.04 m grading 289 ppm Sc2O3 and 0.364% REE). The drillhole intersected
a 90-m core interval of amphibole-rich ferrosyenite that explained the magnetic anomaly but did not contain
any significant Sc or REE mineralization.
Table 2 – Diamond Drillhole Locations
Hole #
Easting (UTM)
NAD83 Zone
20N
Northing (UTM)
NAD83 Zone 20N
Elevation
(meters)
Azimuth
(degrees)
Dip
(degrees)
Depth
(meters)
CL20036 440245 6131700 518 255 -55 161.50
CL20037 440870 6133665 540 305 -60 254.05
CL20038 440825 6133270 522 305 -50 143.08
CL20039 442230 6134800 527 340 -45 117.00
Total 675.63
Hole CL20037: was drilled on Section 450N to test the lateral continuity of the TG mineralized zone and
intersected two, broad olivine ferrosyenite sections of approximately 65m and 40m in core length. The total
mineralized package was observed to have a true width of 110 m. Best scandium and rare earth intervals
from this hole are presented in Table 1. The mineralized intervals show excellent lateral and vertical
continuity of the favourable TG Zone target horizon (Figure 3).
Hole CL20038: was drilled on Section 100N approximately 90m east and behind the previously drilled
borehole CL19034 to test a parallel ferrosyenite unit intersected parallel and east of the main TG
mineralized zone. The hole intersected multiple, narrow scandium-bearing ferrosyenite intervals grading
up to 244 g/t Sc2O3 and 0.71% TREO+Y over 2.6 m and 192 g/t Sc2O3 and 0.50% TREO+Y over 3.6
m.
Hole CL20039: was drilled to test one of multiple magnetic anomalies over the Northern Target. The hole
tested a 350m long by 100m wide highly magnetic feature. Coarse grained syenite with small concentrations
of pyroxene and amphibole were the cause of the anomalous geophysics. No significant scandium or REE
assays were returned from this hole.
Imperial’s exploration team successfully tested the remaining targets identified from previous work on the
property and developed a better understanding of the controls on the concentration and distribution of
scandium mineralization on the property.
To date, the T G Zone t arget shows the highest potential to host an economic scandium deposit. Going
forward, Imperial plans to undertake a definition drilling program over the TGZ Target with the goal of
preparing an initial NI43-101 compliant resource estimate and a Preliminary Economic Assessment (PEA)
in 2021.
Scandium Markets
Scandium acts as a grain -refiner and hardener of aluminum alloys. Aluminum -scandium alloys combine
high strength, ductility, weldability, improved corrosion resistance and a low er density. The combination
of all these properties makes aluminum-scandium alloys well -suited for the aerospace, automotive and
defense industries. Scandium-modified aluminum 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) an d
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 aluminum components is an $11 billion 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 to 43 million EVs are produced by 2030 (Bloomberg, 2018), this could equate to demand of
5,100 to 7,300 tonnes of Sc2O3 for this platform alone.
In addition, Imperial is actively monitoring the impact of the current trade war between the US & China
and recent veiled threats by China of cutting off Rare Earth and Technology material products to US defense
contractors and US allies. China now controls over 70% of the global rare earth supply chain and provides
80% of the US rare earth demand . With the risk of limiting critical metal supplies to the US, major
consumers of rare earths have just been reminded of the need to establish domestic critical materials supply
chains. Crater Lake is the only known significant primary bedrock resource of scandium in North America
with the potential for supporting a new domestic scandium and rare earth supply chains.
Analytical Laboratory and Quality Control
Strict QA/QC protocols have been implemented for the Crater Lake Project, including the insertion of
certified reference materials (standards) and blanks at regular intervals throughout the sequence of samples.
A total of 343 core samples and 7 grab samples, including 17 QA -QC samples, were sent for chemical
analyses. All sample preparation and analytical work was carried out by A ctivation Laboratories 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 vi a a lithium metaborate/tetraborate fusion
inductively coupled plasma (ICP) finish. Trace elements were analyzed by fusion ICP/MS methods.
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
Phone: +1 (514) 360-0571
Email: [email protected]
CHF Capital Markets
Iryna Zheliasko, Manager-Corporate Communications
Phone: +1 (416) 868-1079 x229
Email: [email protected]
Website: www.imperialmgp.com Twitter: @imperial_mining Facebook: Imperial Mining Group
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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
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Figure 1 –Location Map, Crater Lake Project, Quebec
Figure 2 – Scandium Target Location Map, Crater Lake Project, Quebec
Figure 3 – Diamond Drill Cross-Section 450N, TG Zone, Crater Lake Project, Quebec