Ming Financial buying into Labrador yttrium deposit

Vancouver-based Ming Financial (MF-A) plans to acquire the Strange Lake yttrium property in northwestern Labrador from Iron Ore Co. of Canada (IOC).

An agreement-in-principle calls for Ming to finance feasibility work and pilot tests, and eventually provide the capital to bring the property into production. IOC will retain a net profits interest.

“It is a fascinating deposit, near the surface, and with one of the largest concentrations of yttrium in the world,” says Brian Peckford, chairman of Ming (and former premier of Newfoundland). “More than $7 million has already been spent and we intend to review and update those data and take a prefeasibility look. Based on those results, we will decide [whether or not] to proceed to a full, bankable feasibility study.”

In the 1980s, IOC outlined a near-surface deposit at Strange Lake containing 50 million tonnes grading 0.38% yttrium, 2.99% zirconium, 0.29% niobium and 0.076% beryllium.

The deposit was discovered in 1979 as a result of follow-up work on a uranium anomaly delineated during a regional survey. Strange Lake and other rare earth showings in Labrador are hosted by peralkaline felsic volcanic rocks (such as trachytes and rhyolites) and related sub-volcanic intrusions.

Yttrium, the main commodity at Strange Lake, is used in various industrial applications, such as ceramics, lasers, high-performance alloys and superconductors.

Peckford says yttrium has many more uses today than it had a decade ago, and that this should improve project economics. He adds that the project stands a chance of benefiting from infrastructure being developed in Labrador for the Voisey ‘s Bay nickel deposit. “Strange Lake is only 80 miles from Voisey ‘s Bay,” he points out.

Meanwhile, Ming ‘s 70%-owned subsidiary, Ming Minerals, has made its final shipment of copper concentrate from the Rambler property near Baie Verte, Nfld., to Noranda Metallurgy ‘s refinery in Montreal, Que.

The miner is installing a gold circuit to process gold ore from the property.

Ore mined from a small deposit next to the mill will provide the initial feed, but eventually ore will be supplied by the recently acquired Stog’er Tight property, about 10 miles from the mill.

Once gold production is under way, Ming plans to resume exploration on the property to enhance the estimated reserve of 48,000 oz. gold. The company is also pursuing other opportunities in the region.