Australian-listed gold and mineral exploration company Jervois Mining (ASX: JRV) has penned a a joint venture agreement with Toronto Stock Exchange-listed EMC Metals to explore and develop Jervois' world class Nyngan Scandium deposit located in New South Wales, Australia.
This latter group will manage the project until further notice by the participants and has compiled the report given below for release to TSX and also for the Jervois release to its shareholders via ASX.
“EMC’s mandate for growth is to aggressively pursue opportunities in specialty and unusual metals," EMC President Peter Bosse said.
In December 2009 we acquired TTS Inc. and the services of its founder Willem Duyvesteyn, a leading expert in the development of technologies for the recovery of these metals.”
“Signing an agreement only two months later to develop the world’s only primary Scandium property proves EMC’s total commitment to the rapid execution of its mandate and bodes well for future developments."
The Nyngan Deposit is located approximately 500 km northwest of Sydney, Australia and is accessible via a 25km sealed road from the town of Nyngan. The property consists of part of exploration license EL 6009 and all of EL 6096 and covers over 9,000ha.
Scandium and its alloys, are presently used in the aerospace industry, sports equipment, laser research, specialty welding wire, electronics and high intensity halide lamps. The current use of scandium is severely restricted by its scarcity of reliable supply as there are no primary Scandium mines in production in the world.
It is anticipated that a significant demand for Scandium will be realized within the aluminum and fuel cell industries once a reliable supply of Scandium has been established.
Very little information is available in the public domain for Scandium prices. The most reliable data are available from the USGS, which has quoted a price of $1,400/kg for the last four years for a Sc2O3 product of 99.9% purity.
In the 1980s, 134 rotary air blast holes and two diamond drill holes were drilled in the area exploring several of these Alaskan-type pyroxenite bodies for platinum group.
Between 1999 and 2001, two traverses of reverse circulation drill holes exploring for nickel were drilled across the Gilgai Intrusion. Jervois obtained the sample pulps from these RC holes and analyzed them for scandium; the results indicated there was a significant enrichment of Scandium in the Gilgai laterite.
In 2006, Jervois completed a 2,638 meter drill program consisting of 64 reverse circulation holes and 5 air core holes at the Gilgai Project.
EMC Metals is currently carrying out the work required to reconcile the existing JORC resource with NI 43-101 standards.
EMC has signed an Exploration Joint Venture Agreement with Jervois pursuant to which EMC will enter into a joint venture on the Nyngan property. EMC will be the manager of the joint venture.
Under the Agreement, EMC is required to pay the sum of CAD $300,000 into escrow to be released to Jervois upon satisfaction of certain conditions precedent, including verification of title to the Nyngan property and approval of the Toronto Stock Exchange.