Temas Resources Completes Acquisition of Flagship Iron, Titanium, and Vanadium Property and Provides Public Update on The Critical Mission of Mineral Independence
Temas Resources Completes Acquisition of Flagship Iron, Titanium, and
Vanadium Property and Provides Public Update on The Critical Mission of
Mineral Independence
VANCOUVER, British Columbia, September 28, 2020 ― Temas Resources Corp. (“The
Company”, “Temas Resources”, CSE: TMAS, OTCQB: TMASF), a publicly traded
company focused on the advancement of mineral independence within stable,
mining-friendly jurisdictions, announced today it has completed the acquisition of
100% interest in the La Blache Property.
In 2012, a historic estimate of 101,700,000 tonnes grading 59.7% Iron(III) oxide
(Fe2O3) [41.76% Iron], 18% Titanium(IV) oxide (TiO 2), and 0.33% Vanadium
oxide ( V2O5) [0.18% Vanadium] in the inferred category at a cut -off of 5.1%
Titanium(IV) oxide (TiO2) equivalent grade was published by SGS Canada for the
Farrell-Taylor Deposit located entirely within the La Blache Property. Reported in the
document titled “NI 43-101 Technical Report: Resource Estimation of the La Blache
Project Cote-Nord, Quebec, Canada for Nevado Resources Corporation”. This historic
estimate is relevant because it is the culmination of previous work conducted on the
property. This historic estimate was prepared to the quality and rigour as defined by
NI43-101 standards in 2012 and at the time would have been considered an inferred
resource, but does not meet current standards. A qualified person has not conducted
sufficient work on the historical estimate required to categorize this resource to
current CIM definitions of a resource (additional work may include additional drilling
requirements). Temas Resources is not treating this historic estimate as current
mineral resources and a qualified person has not reviewed the work to define the
quality of the work associated with this historic estimate.
Kyler Hardy, CEO of Temas Resources, stated “We are excited to close the acquisition
of 100% ownership of the La Blache Property. This flagship property is an excellent
complement to our first project, the DAB Property, and both combined represent a
considerable footprint for our company in the Grenville Geological Province. To secure
these Iron, Titanium, and Vanadium claims within the stable, mining -friendly
jurisdiction of Quebec, Canada completes a major milestone in the development o f
Temas Resources and moves us one step closer to advancing the greater mission of
mineral independence.”
Acquisition Highlights: “The La Blache Property”
The historic estimate was considered an inferred resource, but modifications to
resource estimation in 2014 were not applied to the resource estimation process and
may change what constitutes resource material in a current estimate.
Historical estimate at a 5.1% TiO2 cut-off grade of 101,700,000 tonnes 21.75%
TiO2 Equivalent, with the following grading:
59.7% Iron (III) oxide (Fe2O3) [41.76% Iron]
18% Titanium (IV) oxide (TiO2)
0.33% Vanadium oxide (V2O5) [0.18% Vanadium]
Testing of the oxide mineralization by Neomet indicated recovery into a final
high-purity product with the following results:
90% recovery of Iron (Fe)
95% recovery of Vanadium (V)
Titanium could be 100% recovered from the leach solution into a TiO 2
(titanium-dioxide, commonly known as Titanium (IV) oxide) product suitable
for further processing to pigment-grade TiO2
Ammonium metavanadate (AMV), the precursor to V2O5 (Vanadium Pentoxide,
commonly known as Vanadium oxide), was recovered from the leach solution
at a purity of 99.9%
The Property is situated close to existing infrastructure.
Table 1-1: “The La Blache Property”, Farrell-Taylor Deposit
COG TiO2 Eq
(%)
Volume* Tonnage* Fe2O3
(%)
Fe
(%)
TiO2
(%)
V
(%)
V2O5
(%)
TiO2 Eq
(%)
0 22,200,000 102,120,000 59.51 41.62 17.94 0.18 0.33 21.67
5 22,110,000 101,720,000 59.70 41.75 18.00 0.18 0.33 21.74
5.1 22,110,000 101,700,000 59.70 41.76 18.00 0.18 0.33 21.75
6.7 22,030,000 101,320,000 59.86 41.87 18.05 0.18 0.33 21.80
10 21,820,000 100,370,000 60.21 42.11 18.16 0.19 0.33 21.93
15 20,970,000 96,460,000 61.18 42.80 18.46 0.19 0.34 22.29
Dated: May 14th, 2012 - *Rounded to nearest 10k
Estimates assume an open -pit mining scenario, with mining, processing, and G&A costs of US
$115/tonne
Price assumptions: V2O5 @ US$13.50/kg, Fe2O3 @ US$0.12/kg, TiO2 @ US$2.50/kg.
Recoveries used: 90% Fe, 95% V 100% TiO2, TiO2
Eq Calc: TiO2 (%) + (V (ppm)*1.7852*0.0001*5.4) + (Fe2O3 (%)*0.033)
Relative density used: 4.6g/cm³.
CIM Definitions were followed for mineral resources and all tonnes would be closest in comparison to
inferred mineral resources.
Reported in the document titled “NI 43 -101 Technical Report: Resource Estimation
of the La Blache Project Cote -Nord, Quebec, Canada for Nevado Resources
Corporation”. This historic estimate is relevant because it is the culmination of
previous work conducted on the property. This historic estimate was prepared to the
quality and rigour as defined by NI43-101 standards in 2012 and at the time would
have been considered an inferred resource, but does not meet current standards. A
qualified person has not conducted sufficient work on the historical estimate required
to categorize this resource to current CIM definitions of a resource (additional work
may include additional drilling requirements). T emas Resources is not treating this
historic estimate as current mineral resources and a qualified person has not
reviewed the work to define the quality of the work associated with this historic
estimate.
Public Update: The Critical Mission of Mineral Independence
Eight days ago, in a joint announcement, the U.S. Department of the Interior and the
U.S. Department of Energy announced a new partnership for critical mineral research
expanding upon the groundwork laid out in Executive Order 13817, “A Federal
Strategy To Ensure Secure and Reliable Supplies of Critical Minerals”. The third call
to action of the strategy “identifies options for accessing and developing critical
minerals through investment and trade with America’s allies”. As the largest importer
and purchaser of American goods, a founding member of NATO and with the longest
shared border with the U.S. – nearly double the size of Mexico – Temas Resources
believes Canada is the ideal, stable jurisdiction to reduce reliance upon China, Russia
and other significant producers of critical minerals.
On December 18, 2019, Canada announced that it joined the U.S.-led, multi-country
Energy Resource Governance Initiative, which aims to promote secure and resilient
supply chains for critical energy minerals. On January 9, 2020, Canada and the U.S.
announced they have finalized the Canada–U.S. Joint Action Plan on Critical Minerals
Collaboration, advancing our mutual interest in securing supply chains for the critical
minerals needed for important manufacturin g sectors, including communication
technology, aerospace and defense, and clean technology. This announcement
delivered on the June 2019 commitment by the Prime Minister of Canada and the
President of the United States.
The final list of critical minerals , commodities that are vital to the Nation's security
and economic prosperity, includes: Aluminum (bauxite), Antimony, Arsenic, Barite,
Beryllium, Bismuth, Cesium, Chromium, Cobalt, Fluorspar, Gallium, Germanium,
Graphite (natural), Hafnium, Helium, Indium , Lithium, Magnesium, Manganese,
Niobium, Platinum group metals, Potash, the Rare Earth Elements group, Rhenium,
Rubidium, Scandium, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten,
Uranium, Vanadium, and Zirconium. Canada is an important supplier of 13 of the
35 minerals that the U.S. has identified as critical to economic and national security.
Based on data from the United States Geological Survey, the top producers of
Vanadium are China and Russia, both accounting for more than half of the worl d’s
reserves. These statistics highlight the urgency of securing and developing new
sources of critical minerals within stable, mining -friendly jurisdictions. Temas
Resources looks forward to doing its part in the coming months and years toward the
important mission of Mineral Independence.
Further Details: “The La Blache Property”
The La Blache Property is comprised of 48 claims covering 2,653.25 hectares (26.53
km²) of ground ~100km north of the community of Baie-Comeau, in Quebec’s north
shore region, situated near Hydro-Quebec’s Manic 3 Hydro Reservoir. The La Blache
Property is part of the Grenville Geological Province, which extends for more than
2,000 kilometers and skirts the North Shore of the St-Lawrence River. Its width varies
from 300 kilometers to 600 kilometers and forms the south east segment of the
Canadian Shield. The Archean rocks of the Superior Province and the Proterozoic
rocks of the Otish Basin are separated from the Grenville Province by the Grenville
Front. The tectonic fabric of the Grenville is predominantly northwest -southwest
trending. The bedrock of the property is the east-west trending La Blache Anorthosite
Complex and late crosscutting gabbronorites, gabbros, diabase, mangerites, granites
and pegmatites. The La Blache Anorthosite Complex is an almost ellipsoid batholith
of 35 kilometers by 20 kilometers within intrusive rocks that extends for 100
kilometers by up to 20 kilometers.
The La Blache Property was originally discovered in the 1950’s with exploration being
carried out through the years with the most advanced study being the 2012 report
from SGS. Drilling coverage on the property has been conducted to a spacing
appropriate for inferred resource estimation, preliminary metallurgical work has also
been conducted resulting in high recovery of Iron (Fe), Titanium (Ti) and Vanadium
(V). These initial steps are seen as positive progress, but additional work will need to
be conducted to further define the project’s potential. Temas Resources is looking
forward to advancing the La Blache Property and the region through appropriate
exploration and engineering studies.
Technical Report: “The La Blache Property”
The Company announces that it has filed on SEDAR an independent technical report
(the “Technical Report”) prepared in accordance with National Instrument 43-101 –
Standards of Disclosure for Mineral Projects (“NI 43-101”) in respect of the Property.
The full Technical Report with an effective date of August 20, 2020 is entitled “2020
Technical (NI 43 -101) report on La Blache Property”. It was prepared by Rory
Kutluoglu, P. Geo., who is independent of the Company and is a qualified person
within the meaning of NI 43 -101. The Technical Report can be found under the
Company’s issuer profile at www.sedar.com and the Company’s website.
As noted elsewhere in this news release, the Company wishes to clarify that the
Technical Report does not include a current resource estimate and does not constitute
a preliminary economic assessment on the Property.
Transaction Details: “The La Blache Property” 100% Acquisition
Pursuant to the close of the acquisition, Temas Resources issued an aggregate of
20,000,000 Temas Resources shares (the “Payment Shares”) and paid $60,000 to
the vendors and delivered a 2% NSR Royalty subject to the right of Temas to
repurchase one-half of the NSR Royalty (being 1%) for $2,500,000 at any time. The
Payment Shares are subject to pooling restrictions as follows: 25% will be released
from the pool on the date that is six months from the close of the acquisition (March
23, 2020) and 75% will be released from the pool on the date that is 12 months from
the close of the acquisition (September 23, 2020). This transaction constituted a
“related party transaction” within the meaning of Multilateral Instrument 61 -101 –
Protection of Minority Security Holders in Special Transactions (“MI 61-101”) and
therefore minority shareholder approval was obtained in addition to Canadian
Securities Exchange approval being obtained . Further details with respect to the
acquisition of La Blache can be found in the June 18, 2020 and August 27, 2020
Temas Resources news release.
About Temas Resources
Temas Resources Corp. (" Temas Resources") (CSE: TMAS) (OTCQB: TMASF) is
responding to the growing global demand for Iron ore and two strategically important
minerals — Titanium and Vanadium — deemed by the U.S. Department of the Interior
as critical to U.S. national security and the economy. Temas Resources first and
flagship properties are located in the stable, mining -friendly jurisdiction of Quebec
(Canada) bordering Vermont, Maine, and New York State (U.S.) in an area known as
the Grenville Geological Province. The Grenville Geological Province is home to Lac
Tio, the largest solid ilmenite deposit in the world. As a mineral exploration company
focused on the acquisition, exploration and development of Iron, Titanium, and
Vanadium properties, Temas Resources has focused its efforts on advancing two
major projects in the Grenville Geological Province area. The first, the DAB Property,
is an option for 100% interest consisting of 128 contiguous mineral claims which
cover 6,813.72 hectares (68.14 km²) within the Grenville Geological Province. The
flagship, the La Blache Property, is 100% ownership of 48 semi -contiguous mineral
claims which cover 2,653.25 hectares (26.53 km²) within the Grenville Geological
Province. All public filings for the Company can be found on the SEDAR website
www.sedar.com. For more information about the Company, please visit
www.temasresources.com.
Qualified Person
Rory Kutluoglu, B.Sc., P.Geo, is the Qualified Person as defined by NI 43 -101 who
has reviewed and approved the technical information contained within this press
release.
On behalf of the Board of Directors of Temas Resources Corp.,
“Kyler Hardy”
CEO, Director
Contact: Nick Spencer, Investor Relations
Phone: +1 (604) 332-0902
Email: [email protected]
Forward Looking Statements
This news release includes certain “Forward ‐Looking Statements” within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and “forward‐looking
information” under applicable Canadian securities laws. When used in this news release, the
words “anticipate”, “believe”, “estimate”, “expect”, “target”, “plan”, “forecast”, “may”,
“would”, “could”, “schedule” and similar words or expressions, identify forward ‐looking
statements or information. These forward‐looking statements or information relate to, among
other things: entry into a def initive agreement for the Equity Investment Facility, closing of
the Equity Investment Facility, the Company’s plan to build an advanced base and special
metals portfolio, the development of the La Blache Property and the DAB Property, including
drilling activities; and future mineral exploration, development and production, the funding of
the Company pursuant to the Equity Investment Facility, the issuance of securities pursuant
to the Equity Investment Facility, and the resale restrictions and arrangement s relating to
such securities.
Forward‐looking statements and forward ‐looking information relating to any future mineral
production, liquidity, enhanced value and capital markets profile of Temas Resources, future
growth potential for Temas Resources and its business, and future exploration plans are based
on management’s reasonable assumptions, estimates, expectations, analyses and opinions,
which are based on management’s experience and perception of trends, current conditions
and expected developments, a nd other factors that management believes are relevant and
reasonable in the circumstances, but which may prove to be incorrect. Assumptions have
been made regarding, among other things, the price of iron, titanium, vanadium and other
metals; no escalation in the severity of the COVID -19 pandemic; costs of exploration and
development; the estimated costs of development of exploration projects; Temas Resources’
ability to operate in a safe and effective manner and its ability to obtain financing on
reasonable terms.
These statements reflect Temas Resources’ respective current views with respect to future
events and are necessarily based upon a number of other assumptions and estimates that,
while considered reasonable by management, are inherently subject to significant business,
economic, competitive, political and social uncertainties and contingencies. Many factors, both
known and unknown, could cause actual results, performance or achievements to be
materially different from the results, performance or ach ievements that are or may be
expressed or implied by such forward‐looking statements or forward-looking information and
Temas Resources has made assumptions and estimates based on or related to many of these
factors. Such factors include, without limitatio n: the Company’s dependence on one mineral
project; precious metals price volatility; risks associated with the conduct of the Company’s
mining activities in Quebec; regulatory, consent or permitting delays; risks relating to reliance
on the Company’s mana gement team and outside contractors; risks regarding mineral
resources and reserves; the Company’s inability to obtain insurance to cover all risks, on a
commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to
generate sufficient cash flow from operations; risks relating to project financing and equity
issuances; risks and unknowns inherent in all mining projects, including the inaccuracy of
reserves and resources, metallurgical recoveries and capital and operating cos ts of such
projects; contests over title to properties, particularly title to undeveloped properties; laws
and regulations governing the environment, health and safety; the ability of the communities
in which the Company operates to manage and cope with th e implications of COVID-19; the
economic and financial implications of COVID -19 to the Company; operating or technical
difficulties in connection with mining or development activities; employee relations, labour
unrest or unavailability; the Company’s inte ractions with surrounding communities and
artisanal miners; the Company’s ability to successfully integrate acquired assets; the
speculative nature of exploration and development, including the risks of diminishing
quantities or grades of reserves; stock m arket volatility; conflicts of interest among certain
directors and officers; lack of liquidity for shareholders of the Company; litigation risk; and
the factors identified under the caption “Risk Factors” in Temas Resources’ management
discussion and analysis. Readers are cautioned against attributing undue certainty to forward‐
looking statements or forward-looking information. Although Temas Resources has attempted
to identify important factors that could cause actual results to differ materially, there may be
other factors that cause results not to be anticipated, estimated or intended. Temas Resources
does not intend, and does not assume any obligation, to update these forward ‐looking
statements or forward -looking information to reflect changes in assump tions or changes in
circumstances or any other events affecting such statements or information, other than as
required by applicable law.