Crater Lake’s scandium resource boosted 38%

Scandium Canada (TSXV: SCD) said new data show a 38% increase in indicated resources at its Crater Lake project in northern Quebec.

Indicated resources in Crater Lake’s TG zone are now estimated at 16.3 million tonnes grading 277.9 grams per tonne of scandium, Scandium Canada said Thursday. Inferred resources are estimated to be 20.9 million tonnes grading 271.7 grams per tonne, 31% more than previously calculated, the company also said.

Located 200 km northeast of Schefferville near Labrador, Crater Lake is regarded as one of the world’s largest primary scandium projects. The property covers 47 sq. km and is accessible via airplane or helicopter.

As it advances toward a prefeasibility study for Crater Lake, the company is holding talks with potential investors, indicating “strong interest” in its scandium and rare earth elements. It completed a preliminary economic assessment of the project in 2022.

“We continue to have discussions with potential strategic investors as well as off-takers of scandium, aluminum-scandium alloys and rare earth elements and are pleased with the interest we are getting,” Scandium Canada CEO Guy Bourassa said. “A project update will be issued shortly.”

Scandium Canada shares jumped 33% to 2¢ in early trading Friday on the TSX Venture Exchange. That gave the company a market capitalization of $6.2 million.

Potential increase

The new mineral resource estimate incorporates data from a 2024 drilling program, which consisted of seven drillholes with a cumulative length of 1,185 metres. Mineralization remains open laterally and at depth, demonstrating the potential to increase the mineral resource with additional drilling, Scandium Canada said. 

Based on a net smelter return value of $205.54 per tonne for potential open-pit extraction, the value of mineralization could range from $369 to $379 per tonne, Scandium Canada said. 

Scandium is classified as a rare earth element. It can be combined with aluminium to produce an alloy that’s as strong as steel and titanium while weighing around one-third of steel.

Separately, Scandium Canada said yesterday it closed the first tranche of a previously announced non-brokered private placement by way of unsecured loan agreements. Gross proceeds, amounting to $410,000, will be used for general administrative expenses and the development of aluminium-scandium powders.