Mr. Mike Hodge of Saville reports
SAVILLE RESOURCES INC. SIGNS EXPLORATION EARN-IN AGREEMENT WITH COMMERCE RESOURCES CORP. ON ELDOR NIOBIUM CLAIMS
Saville Resources Inc. has entered into an exploration earn-in agreement with Commerce Resources Corp. on a group of niobium claims that form part of its Eldor property, located approximately 130 kilometres south of Kuujjuaq in Northern Quebec.
The claim group consists of 21 contiguous mineral claims, encompassing an area of approximately 980 hectares, and is considered highly prospective for niobium and tantalum. The property includes the high-priority and drill-ready Miranna target where prior sampling has returned up to 5.9 per cent Nb2O5 (niobium pentoxide) and up to 1,220 parts per million Ta2O5 (tantalum pentoxide) within a strongly mineralized boulder train with a distinct geophysical anomaly at its apex. Of the 64 prospecting rock samples collected from the Miranna area during the 2015 program, a total of 40 samples returned Nb2O5 grades in excess of 0.5 per cent, with 16 in excess of 1 per cent to a peak of 5.9 per cent Nb2O5. A map highlighting sampling results as well as the postulated source can be found at the company's website.
The property also includes the northwest and southeast zones where previous drilling returned wide intercepts of mineralization including: 46.88 metres grading 0.46 per cent Nb2O5 (EC08-008) and 26.10 m grading 0.55 per cent Nb2O5, including 10.64 m of 0.78 per cent Nb2O5 (EC08-015), respectively.
The company believes that these numerous, high-grade, niobium-tantalum mineral occurrences demonstrate the prospective nature of the property, and indicate a strong potential to host a deposit of significance.
Prior mineralogical work on samples from the Miranna target and southeast area indicate that the niobium-tantalum mineralization is present in the mineral pyrochlore, which is the dominant source mineral for niobium and tantalum globally, including the operating Niobec mine located in Quebec. Further, the pyrochlore is commonly visible to the naked eye, thus indicating a relatively course grain size, which is a favourable attribute for metallurgical recovery.
Under the terms of the agreement, the company may obtain a 75-per-cent interest in the property by completing a total of $5-million in work expenditures over a five-year period. Commerce will receive a cash payment of $25,000 upon signing, and $225,000 upon closing, as well as retain a 1-per-cent or 2-per-cent net smelter royalty (NSR) on production, depending on the claim, with Saville having the option to buy back half the respective NSR for $1-million. The agreement is subject to the approval of the TSX Venture Exchange and regulatory authorities.
National Instrument 43-101 disclosure
Darren L. Smith, MSc, PGeol, Dahrouge Geological Consulting Ltd., a qualified person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
Niobium is a shiny, grey, ductile metal with a chemical symbol Nb and an atomic No. 41. Niobium is seeing significant increased demand from the HSLA (high strength low alloy) steel market. Niobium has the ability, with a very low percentage alloy, to significantly strengthen steel. The HSLA steel market is growing at approximately 22 per cent per annum. HSLA steel is used in bridges, buildings and in automotive chassis. Market analysts forecast the overall global niobium market to grow at a CAGR (compound annual growth rate) of 7.66 per cent during the period 2017 to 2021.
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