SAGA Metals (TSX-V:SAGA) has completed the acquisition of the Garneau Project in Québec, Canada, with Rio Tinto’s (ASX:RIO) Canadian subsidiary RTEC.
The Graneau Project, covering 6,450.54 hectares, is located 120km north of deep-sea port of Havre-Saint-Pierre and 80km north of Rio Tinto’s Lac Tio ilmenite mining operation.
As part of the acquisition, SAGA has granted RTEC a 2% net smelter return royalty on the extraction and production of minerals from the project. RTEC has also agreed to reimburse SAGA for its reasonable costs and expenses incurred in connection with the agreements, totalling C$60,000 ($62,672).
Director Michael Garagan says the acquisition marks a strategic advancement for the company, as the geology and modern regional infrastructure has all the hallmarks of the Radar Project.
“We have secured a highly prospective titanium asset in Québec’s premier ilmenite district, located in the same anorthosite complex as Rio Tinto’s world-class Lac Tio operation,” Garagan says.
“The geophysical signature on the Garneau property represents a clear target for further exploration. Not only does the geophysical signature display a basin-like morphology directly comparable to Lac Tio, but a massive ilmenite-rich boulder returning a sample of 32.4% titanium dioxide is a very encouraging start to the project.
“We are equally excited by the major infrastructure advantages now in place, including the recently completed Romaine hydroelectric complex and the new Hydro-Québec access road located only 4.5km from the property.”
Rio Tinto’s previous work at Garneau has advanced the property from conceptual targeting to a defined, soon drill-ready geophysical anomaly. Rio Tinto’s report notes outline that drilling should be carried out in several areas of the large magnetic feature to obtain better geological and structural information, as well as to seek the source of the ilmenite boulder found on the property.
SAGA Metals is a North American explorer focused on discovering a suite of critical minerals that support the transition to supply security.
Write to Aaliyah Rogan at Mining.com.au
Images: Rio Tinto
