EMC Metals Corp. (TSX: EMC) announced the formation of a Joint Venture with Jervois Mining (ASX:JRV), Victoria Australia to develop Jervois' world class Nyngan Scandium deposit located in New South Wales, Australia.
"EMC's mandate for growth is to aggressively pursue opportunities in specialty and unusual metals. 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." Said EMC's President Peter Bosse, "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
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.
The Nyngan deposit is hosted within the lateritic zone of the Gilgai Intrusion, one of several Alaskan-type mafic and ultramafic bodies which intrude Cambrian-Ordovician metasediments collectively called the Girilambone Group. The laterite zone, locally up to 40m thick, is layered with hematitic clay at the surface followed by limonitic clay, saprolitic clay, weathered bedrock and finally fresh bedrock. The scandium mineralization is concentrated within the hematitic, limonitic, and saprolitic zones with values up to 350ppm Sc.
EMC Metals is currently carrying out the work required to reconcile the existing JORC resource with NI 43-101 standards.
"The Board of Jervois Mining Limited (JRV) regards this joint venture with EMC as a very significant event for JRV and its shareholders. The recent acquisition by EMC of TTS Inc. was critical to the decision to enter this joint venture. TTS and its founder, Willem Duyvesteyn, are both well known to JRV dating back to 2001." Mr. Duncan Pursell, Jervois' Managing Director added, "JRV is fully conversant with the TTS research work on nickel/cobalt recovery using 'heap leach' techniques and more recently, work on scandium recovery. These activities, in the Board's view, made the TTS parent company, EMC, the perfect 'fit' as a partner for JRV."
EMC has executed 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 has paid 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.
The Agreement requires EMC to incur exploration and metallurgical work of AUS $500,000 (CAD $460,000) within 180 business days of the conditions precedent being satisfied, or pay cash in lieu thereof. In the event that EMC wishes to continue the joint venture, EMC must deliver a bankable feasibility study within 480 business days of the conditions precedent being satisfied, failing which the Agreement will terminate.
Upon EMC delivering the bankable feasibility study to Jervois, EMC must pay to Jervois an additional AUS $1,300,000 plus GST at which time it will be granted a 50% interest in the joint venture. The Agreement provides for straight-line dilution, with interests diluted below 10% being converted into a 2% Net Smelter Returns Royalty.
EMC and Jervois have set the following targets:
1. Completion of a bankable feasibility study within 12 months after signing of the agreement;
2. Subject to financing, the design, engineering and construction of a 100 – 200 ton per day commercial plant producing from 10 to 20 tons of Scandium oxide at 99.99% purity. Tonnages to be determined after completion of item #1. Estimated time frame for completion of #2 is 8-12 months;
3. Our initial target for mining will be a high grade area. In March 2008 Jervois' engineering staff designed a preliminary open pit to a 30 meter depth with an overburden ratio of 1.8:1, yielding 305,062 tons of ore at a grade of 350.4 grams/ton.