The battery metals boom resulted in the price of vanadium changing (usually upwards) in recent years. People have started to favor vanadium flow batteries, rather than lithium-batteries. Additionally, with an ever-increasing demand from China, many mining companies have started vanadium projects across the US, Russia, South Africa, Brazil, and Canada. The latter has several vanadium deposits, many of which have yet to be tapped.
One Canadian company that is part of the vanadium rush is Delrey Metals (CSE:DLRY) (OTCPK:DLRYF). Like many others in the Canadian mining market, Delrey Metals has multiple vanadium projects on the go at the moment. One, in particular, stands out.
Delrey Metals: The Four Corners Project
What is It?
Delrey Metals is a Vancouver, British Columbia-based mining exploration company that finances, sources, and develops energy metals assets.
With around six ongoing projects, Delrey Metals’ Four Corners Project is among the impressive. Located in southwestern Newfoundland and Labrador, the Four Corners Project includes 7655.0 hectares, and it is host to vanadium-enriched titaniferous magnetite (iron) mineralization. The Keating Hill East Zone (KHE) is the property’s flagship target. That is important: KHE is thought to have significant vanadium bearing titaniferous magnetite deposit.
The project offers low development and exploration costs (there isn’t a need for camp or helicopter support), and the location and infrastructure make it stand out, as well. Overall, the Fraser Institute states that Newfoundland and Labrador is one of the top mining jurisdictions in the country and globally. When you add that on top of the fact that the Four Corners project transects along its entire length by the Burgeo Highway (Route 480) and a 33-megawatt powerline, you can see why it’s a reputable project.
Plus, Four Corners has an adjacent Highway that provides access to an ice-free water port. For those working on-site, there’s a commercial airport, and industrial service center located 35km away, at Stephenville.
Assay results have been positive thus far. The company announced in March 2019 that it signed the term sheet on the Four Corners vanadium project. At the start of July 2019, Delrey received its drill permits: “The Delrey team is very excited to have received its Four Corners Project drill permits so quickly allowing work to commence in short order.” That same month, news came out that preliminary metallurgical tests at the project produced positive vanadium recovering over 90%.
According to Delrey Metals, the property has four other Fe-Ti-V magnetite zones, but they have yet to be drill tested. However, preliminary surface samples from these zones have shown comparable mineralization to the KHE zone, according to the company. In July 2019, Delrey Metals released details of its drill program, which stated that the company would focus on adding to existing Fe-Ti-V mineralization at the KHE Zone, while also carrying out more ground-truthing over the other target zones on the property.
The drill program was the last we heard of the project from Delrey Metals. Regardless, we know the company is furthering its explorations.
At the end of July last year, Delrey announced a flow-through and non-flow-through private placement. Most companies conduct private placements when they see an opportunity for growth; that strikes us as what Delrey Metals did. The press release states that Delrey Metals will use the aggregate proceeds of the FT Offering to “incur exploration expenditures” on its properties. Further, the press release said the company will use the aggregate proceeds of the NFT Offering for general working capital purposes.
More details can be found here.
Featured image: PixaBay