Drill results from Scandium Canada’s (TSXV: SCD) Crater Lake project in northern Quebec have returned assays as strong as 13.4 metres grading 315 parts per million (ppm) scandium, as the company works on a resource update this year and a later economic study.
That result, from 32.7 metres depth in hole CLB26070 of the TG zone, included 65.4 metres at 175 ppm scandium oxide (Sc2O3) from 122 metres downhole, and 7.2 metres grading 316 ppm Sc2O3, the company reported Wednesday. Crater Lake, located in the Nunavik region, is about 1,290 km northeast of Montreal.
16M indicated tonnes
The TG zone hosts 16.3 million indicated tonnes grading 277.9 grams scandium per tonne 20.9 million inferred tonnes at 271.7 grams scandium, according to the previous resource update from last year.
“A preliminary economic assessment incorporating updated and improved resource, process optimization, and infrastructure assumptions provides a more relevant basis for evaluating project economics and engaging potential strategic partners,” Scandium Canada CEO Simon Thibault said in a release.
“This approach is particularly appropriate as Scandium Canada’s near-term priority is to accelerate the commercialization of subsidiary Scalium+’s aluminum-scandium alloys, thereby fostering sustainable market demand that can support the future development of the Crater Lake Project over the medium and long term.”
Large primary deposit
Crater Lake is regarded as one of the world’s largest primary deposits of scandium, which the Canadian government classifies as a critical metal. Scandium is mainly used in aluminum alloys, fuel cells and high-intensity lighting.
Rio Tinto (ASX, NYSE, LSE: RIO) holds Canada’s sole scandium production plant at Sorel-Tracy, Que., though the scandium is derived as a byproduct from mining ilmenite ore at Rio Tinto’s Lac Tio mine in the province’s east.
Scandium Canada shares gained almost 5% to 22¢ on Wednesday morning in Toronto, giving the company a market capitalization of $106.7 million. The stock has traded in a 12-month range of 2¢ to 36¢.
Continuous intervals
Other noteworthy drill holes at TG include CLB26072, which returned 30.2 metres grading 228 ppm Sc2O3 from 7.3 metres depth, as well as 125 metres at 232 ppm Sc2O3 from 55.1 metres downhole and 10.3 metres grading 461 ppm Sc2O3.
Hole CLB26073 cut 14.1 metres at 227 ppm Sc2O3 from 9 metres depth, including 33.8 metres grading 222 ppm Sc2O3 and 7.1 metres at 346 ppm Sc2O3.
Alongside the company’s plan to release a resource update before the end of the year, it has decided a scandium oxide plant should be constructed in the Schefferville region of Quebec – 200 km southwest of Crater Lake – ideally at a brownfield site. The completion of a preliminary economic assessment would precede the acquisition of that site, Scandium Canada said.
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