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Development News (October 01, 2001)

Canadian Mining Journal Staff | October 1, 2001 | 12:00 am

Diamond drill training for First Nations near Chibougamau

McKenzie Bay International Ltd. has begun a diamond drill program on the Lac Dor vanadium deposit near Chibougamau, Que., with the Cree Nations of Mistissini, Ouje-Bougoumou, Waswanipi and Nemaska. The purpose of this program is to train First Nations personnel to operate a diamond drill rig. The training program is being supervised by the Mistissini Geological Centre, Chibougamau Diamond Drilling Ltd. and IOS Services Geoscientifiques Inc.

The program is expected to contribute valuable information to the bankable feasibility study, complementing the extensive historical work performed on Lac Dor. This includes 38 diamond drill holes, line cutting, a magnetometer survey, detailed geological mapping, linear trenches and channel sampling. A block model has been derived using geostatistics based on previous data; the current holes will be drilled to validate the block model and increase the degree of confidence in the data.

McKenzie Bay, via its Canadian subsidiary, is seeking to develop the Lac Dor deposit into the first primary producing vanadium pentoxide mine in North America, and a major producer of battery-grade vanadium oxides. This deposit is North America’s largest, the world’s second largest, and contains a combined proven, indicated and inferred minable vanadium pentoxide resource of 2.3 billion kilograms. SNC Lavalin is preparing a feasibility study to be followed, if positive, by financing, construction and production.

SOQUEM Inc. has the right to acquire 20% interest in the project.


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