Saga nears first resource with titanium-vanadium hits

High-grade assays from Saga Metals’ (TSXV: SAGA; US-OTC: SAGMF) Radar titanium-vanadium-iron project in Labrador reveal continuity across wide areas of oxide mineralization and point to the potential size of the Trapper deposit as Saga prepares to release an initial resource.

Highlight hole R-0055 returned 97.6 metres grading 43.54% iron oxide (Fe₂O₃), 6.62% titanium (TiO₂) and 0.277% vanadium oxide (V₂O₅) from 320 metres depth, including 66 metres at 47.65% Fe₂O₃, 7.36% TiO₂ and 0.317% V₂O₅, Saga reported Tuesday. Radar is about 10 km south of the fishing town of Cartwright and 390 km east of Labrador’s largest community, Happy Valley-Goose Bay.

“The latest assays from holes R-0055 through R-0057 continue to deliver exactly what we want to see as we advance toward our maiden mineral resource estimate – broad, consistent zones of oxide mineralization with strong titanium, vanadium and iron grades,” Saga’s Chief Geological Officer and Director Michael Garagan said in a release.

“These results further reinforce the growing scale and potential of the Radar project as a significant critical minerals asset in Labrador.”

Few titanium-vanadium explorers

Saga is among few exploration companies targeting the critical metals titanium and vanadium in Canada, both used in steelmaking and in aerospace and nuclear applications. Rio Tinto (ASX, NYSE, LSE: RIO) operates Canada’s only titanium mine Lac Tio in eastern Quebec. There are no vanadium mines in Canada.

Western aerospace manufacturers are expected to need 1.6 million tonnes of titanium by 2044, though Russia and China control much of its supply, U.K.-based market intelligence firm Project Blue said in a January report.

Other strong assays were in hole R-0056 which cut 87.3 metres at 33.39% Fe₂O₃, 4.65% TiO₂ and 0.207% V₂O₅ from 239 metres depth, including 33 metres grading 43.67% Fe₂O₃, 6.14% TiO₂, 0.318% V₂O_5.

Hole R-0057 returned 101.7 metres at 38.65% Fe₂O₃, 5.60% TiO₂, 0.249% V₂O₅ from 233 metres depth, including 20.6 metres grading 47.72% Fe₂O₃, 6.98% TiO₂ and 0.351% V₂O₅.

Program nears completion

After more than 18,600 metres drilled and 50 holes assayed, the initial resource drilling program is expected to finish in the coming weeks, Garagan said.

Radar comprises the Trapper, Hawkeye and Falcon targets. Saga shares fell 1% to 41¢ apiece on Tuesday morning in Toronto, for a market capitalization of $41.2 million. The stock has traded in a 12-month range of 22¢ to 98¢.