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Quebec miner lands high-tech metal property

Montreal miner MDN has picked up a niobium deposit in the James Bay lowlands. The company announced June 7 that it has signed a purchase agreement to acquire the Argor property from Barrick Gold Inc., James Bay Columbium and Goldcorp.
MDN_Crevier
MDN Mining’s Crevier property in Quebec.

Montreal miner MDN has picked up a niobium deposit in the James Bay lowlands.

The company announced June 7 that it has signed a purchase agreement to acquire the Argor property from Barrick Gold Inc., James Bay Columbium and Goldcorp.

The property’s history dates back to the 1960s when James Bay Columbium conducted some exploration work, drilling more than 14,000 metres down to a maximum of 275 metres.

At that time, a resource estimate produced indicated 62 million tonnes at 0.52 per cent niobium oxide.

An exploration shaft was sunk and a 250-tonne bulk sample demonstrated a recovery rate of 78 per cent.

"We are pleased to finalize the acquisition of Argor," said company president-CEO Claude Dufresne in a statement. "The quality of the mineral is such that we strongly believe Argor has the potential to become the second North American producer of Ferro niobium.”

MDN’s main project is Crevier in the Lac Saint-Jean region of Quebec, which it views as a “world-class niobium and tantalum resource.” Both metals are deemed critical commodities to the U.S. government and the European Union. Global supplies are limited and the metals have seen strong growth in recent years because of their use in the high-tech sector.

It’s used in applications like jet engine components, gas turbines, heat resisting equipment and superconducting magnets found in magnetic resonance imaging.

The province still needs to approve the transfer of the mining lease along with the transaction by the TSX Venture Exchange. In return, MDN will issue to the sellers five million common shares and a cash consideration of $25,000. The sellers retain a 2.0 per cent net smelter returns royalty over all minerals produced from the property.