FEO iron assets are much more feasible than MQM
Metalquest meets engineering companies for Lac Otelnuk
2024-09-10 16:52 ET - News Release
Mr. Harry Barr reports
METALQUEST MINING PROVIDES AN UPDATE ON LAC OTELNUK IRON ORE PROJECT, QUEBEC
Metalquest Mining Inc. has released a summary of recent activities that the Metalquest team has been engaged in, regarding the efforts in advancing the Lac Otelnuk project. Metalquest has participated in meetings and consultations with various engineering companies, financial groups, regional port authorities and Quebec government organizations.
To date, the development of this project has revealed an established historic multibillion-ton resource upon which a feasibility study was completed in 2015. The project is 100 per cent owned by Metalquest, and there are no mandatory property payments, exploration expenditures, project expenditures and/or preroyalty payments.
Chairman and chief executive officer Harry Barr stated: "The efforts and team building required to begin development on this expansive project are immense, and we are committed to doing the required steps needed to progress the project and fund these efforts. Right now, we are focused on having meetings and consultation sessions with various engineering companies, financial groups, regional port authorities and Quebec government organizations. We need to have a clear understanding of the big picture ideas of what is needed to move the project along. Our objective is to have quotes in hand from the multinational engineering companies, with offices based in Quebec, to complete our next round of studies before year-end."
Naskapi First Nation of Kawawchikamach
Metalquest signed an exploration and predevelopment agreement with the Naskapi First Nation of Kawawchikamach on Dec. 12, 2023.
Metalquest management met with and presented the Lac Otelnuk iron ore project to the Naskapi First Nation of Kawchikamach in Montreal on June 25, 2024. The project is located on the traditional lands of the Naskapi First Nation. The discussion involved updating the nation with the new go-forward plans and an overview of the project. It was mutually agreed that both Metalquest and the first nation will stay in regular contact and collaborate where possible. Metalquest looks forward to building a mutually beneficial relationship with the Naskapi First Nation of Kawawchikamach.
Meetings and consultation sessions with engineering groups
To complete the next round of updated studies, Metalquest has been consulting with various engineering and engineering procurement construction and management firms as to the cost and time frames needed to complete the next round of studies for the project. The project completed a historical feasibility study in 2015; however, there are many areas in the study which need to be updated or revised. The proposal of Lac Otelnuk at its peak capacity would make the project one of Canada's largest mines and one of the world's largest iron ore mines. The company aims to maintain dialogue with these engineering groups to have a solid understanding of the work required and estimated costs to raise appropriate funds to develop the project. Management hopes to have final estimates before the end of 2024.
A lot of time and effort have been spent this year in gathering the balance of the historical technical data. To date, it has gathered over 500 reports, studies and data sets of Lac Otelnuk by contacting all the groups that worked on the 2015 feasibility study and other previous geological, engineering and environmental reports. Lac Otelnuk has a historical expenditure of approximately $150-million, and the company continues to work with previous companies to retrieve the balance of the historical records.
Regional port authorities and the quebec government
Over the past number of months, Metalquest management has had multiple discussions with regional port authorities to update them on the project and better understand the project's logistics. This is a key element for iron ore projects due to the vast tonnage and volume of materials transported.
Metalquest has also had meetings with HydroQuebec, Ministere des Ressources naturelles et des Forets and the Ministere de l'Economie, de l'Innovation et de l'Energie. Its plan is to complete the "Information Loi 2 -- Formulaire demande 5MW et plus" form to request energy for the project. It has been advised that this is a lengthy process and will need advice from the engineer groups it is working with before the final form is submitted.
Lac Otelnuk -- a critical metal project
The recent addition of high-purity iron ore to the critical metal list of the Quebec and Newfoundland and Labrador governments is a significant development for the Lac Otelnuk project. This classification emphasizes the importance of high-purity iron ore in reducing greenhouse gas emissions through its potential application in green steel production. The steelmaking industry is currently the largest industrial source of carbon dioxide emissions globally, making the development of green steel projects crucial for achieving a sustainable future.
About Metalquest Mining Inc.
Metalquest owns 100 per cent of Otelnuk and is further looking to develop one of the largest iron ore projects in North America. The Lac Otelnuk iron ore project is located in Quebec's Labrador Trough and is approximately 165 kilometres by air northwest of the town of Schefferville, and 1,200 km northeast of Montreal by air. Given the size and scope of the Lac Otelnuk project, management of Metalquest is working with a Toronto-based engineering company familiar with the project to create a go-forward development plan. In the first quarter of 2023, the Quebec government has transferred the claims into Metalquest's name, and management is accumulating a vast amount of technical data as approximately $150-million has been expended on the project to date. Going forward, one of its primary objectives will be to work with the Naskapi First Nation of Kawawchikamch. An exploration and predevelopment agreement was signed on Dec. 12, 2023. Management is continuing to develop its in-house iron ore database to enable the company to secure an option/joint venture partner from the iron ore industry.
During the summer and fall of 2024, management has participated in meetings and consultations with various engineering companies, financial groups, regional port authorities and Quebec government organizations. The objective is to have final quotes for new studies and outline the future development of the project. Management aims to receive costs for the next round of studies needed to update previous work on the project by year-end.
The company owns 2.5 million units of Canadian Copper Inc. and two net smelter return royalties totalling 1 per cent in Murray Brook preliminary-economic-assessment-stage zinc-polymetallic deposit, situated in the famous Bathurst mining district, New Brunswick, Eastern Canada. Canadian Copper has the right to purchase half of a 0.33-per-cent royalty for $1-million and must pay Metalquest a preproduction cash payment of $1-million after the project goes into production.
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