Saga Metals acquires titanium property from Rio Tinto

Critical minerals explorer Saga Metals (TSXV: SAGA) has acquired a prospective titanium asset in Quebec from Rio Tinto’s (ASX, LSE, NYSE: RIO) Canadian subsidiary.

The Garneau property comprises 120 claims covering 64.5 sq. km within the Havre-Saint-Pierre anorthosite complex, a district known for hosting significant titanium-bearing deposits such as Rio Tinto’s Lac Tio site, Canada’s only titanium mine, located 80 km away.

The transaction is a” significant strategic advancement” for the company, Saga’s chief geological officer Michael Garagan said in a release on Thursday, citing Garneau’s location within Quebec’s premier ilmenite district and its proximity to Lac Tio. The mine has been operating for over 70 years, and produces ore that is 60-80% hemo-ilmenite, with titanium as the main commodity mined, and iron and rare earth elements as economic byproducts.

Garneau’s geophysical signature represents a “clear target for further exploration”, Garagan added, highlighting its basin-like morphology directly comparable to that of Lac Tio – one of the highest-grade hard rock titanium operations globally.

The acquisition further advances Saga into Canada’s titanium space and adds to its main Radar titanium-vanadium project in eastern Labrador, where the company has identified an oxide layering across more than 20 km of strike. A systematic drilling program is currently underway at the Trapper zone in support of an initial resource estimate. Titanium, classified as a critical metal by the Canadian government, is sought for its applications in aerospace, medical and energy uses. 

Saga shares gained nearly 2% to 53¢ apiece on the acquisition, taking its market capitalization to C$42.4 million. The stock has traded in a 12-month range of 19¢ to 98¢.

‘Drill-ready’ opportunity

Rio, which holds several operations in Quebec, assembled the Garneau property as part of its broader exploration strategy targeting iron–titanium mineralization within the Havre-Saint-Pierre complex. In 2022, it completed a first-pass exploration program, which defined a 4.5-km by 7.5-km magnetic anomaly within the anorthosite complex.

Subsequent fieldwork by Rio Tinto led to the identification of a large, massive ilmenite boulder, confirming iron–titanium mineralization within the system. The top grab sample returned assays of 32.4% titanium oxide.

The source of the magnetic anomaly, however, has yet to be identified. At the end of Rio’s work, the Garneau project remained at an early exploration stage, with no drilling completed and limited bedrock exposure across the property.

The past work by Rio effectively “advanced the property from regional targeting to a defined, drill-ready opportunity,” leaving the key test of subsurface mineralization to future exploration, according to Saga.

Infrastructure advantage

To acquire the Garneau project, Saga will incur exploration expenditures amounting to C$434,298 that Rio Tinto was otherwise required to spend on the former’s Legacy lithium project in the James Bay district as part of a 2024 joint venture agreement, which has now been terminated.

Rio will retain 2% net smelter returns royalty on the Garneau project and reimburse Saga about C$60,000 in costs.

Along with the project’s geologic potential, the company also highlighted its infrastructure advantages, namely the recently completed Romaine hydroelectric complex and the new Hydro-Québec access road located 4.5 km from the property.

Moreover, as a port city, Havre-Saint-Pierre functions as the coastal logistics hub for the region, supported by established rail access from Lac Tio and marine access along the North Shore, Saga said.

The Rio Tinto mine itself remains an important part of the global titanium feedstock supply chain and continues to underpin the district’s industrial relevance, it added.