Titan Mining Corporation (TSX: TI, OTCQB: TIMCF)
(“
Titan” or the “
Company”) is
pleased to announce the successful completion of its maiden mineral
resource estimate (“MRE”) for the Kilbourne Graphite Project,
located within the mining permit boundary at its 100% owned Empire
State Mine (“ESM”) located in St Lawrence County in New York State.
Highlights:
- An open-pit constrained inferred
mineral resource estimate of 22 million US short tons (“tons”) at
an average grade of 2.91% (Cg) containing 653,000 tons of graphite,
based on a cut-off grade of 1.50%
- Maiden mineral resource estimate
based on 45 diamond drill holes totaling 29,699 ft completed as
Phase I drilling
- The Phase I drilling and maiden
mineral resource estimate represents a small subset of the total
graphite bearing unit identified through surface mapping and
historical drilling
- Maiden mineral resource estimate
based on strike length of 7,000 ft of a total strike length of
25,000 ft. Potential for mineral resource expansion along strike
and down dip, almost entirely hosted within the existing active use
permit, part of the over 80,000 acres of mineral rights controlled
by the company in St. Lawrence County, NY
- Kilbourne is targeted to be
fast-tracked to commercial production to secure the preferred US
domestic supply chain, given its unique advantage of having
existing infrastructure and operational talent at ESM
- Metallurgical test work in progress
at SGS Lakefield is due for completion in Q4 2024. This will
provide product segmentation information and refine the flowsheet
for a commercial demonstration plant
- Production of concentrate from a
commercial demonstration plant, located within the ESM mill, in
2025. This is expected to be the first commercial demonstration
plant in full run-time in the United States capable of delivering
to the US supply chain
- Preparations for an NI 43-101
Preliminary Economic Assessment for the Kilbourne Graphite Project
will begin in early 2025
Don Taylor, CEO of Titan, commented: The maiden
mineral resource estimate at Kilbourne is an excellent result based
on limited Phase I drilling and confirms the prospect of a long
life, open pit, graphite operation at ESM. There remains
significant potential to expand the mineral resource estimate
within the ESM mineral tenure, to potentially fully meet US
domestic needs, and to secure our supply chain. Kilbourne is
located less than 4,000 ft from the existing ESM mill and
infrastructure. With significant operational synergies, Titan is
targeting being the first US commercial producer of natural flake
graphite delivering to a broad spectrum of US based customers.
Rita Adiani, President of Titan, commented: The
maiden mineral resource estimate at Kilbourne together with
existing infrastructure at ESM allows Titan to fast-track the
development of the Kilbourne Project. Our short-term focus is to
de-risk the process and end products through the Phase III program
currently in progress at SGS Lakefield. Following that test work,
Titan will engineer, build and operate a commercial demonstration
plant on site during FY 2025. This process will allow Titan to
deliver a variety of high value natural flake graphite products to
US consumers and build our product offering prior to potentially
scaling production, following relevant studies, in the ensuing 18
months. This approach will maximize pricing for our products and
ensure we build a facility which matches demand.
Mineral Resource Estimate
Figure 1: Kilbourne conceptual
pit outline with modeled mineralization and Titan Property and
permitting outlines
Table 1: Kilbourne Graphite
Mineral Resource Summary and in-situ Metal within Pit Shell
Classification |
Deposit |
Cut-Off Grade(% Cg) |
Tonnage(‘000 Ton) |
Grade(% Cg) |
Contained Graphite(‘000 Ton) |
Inferred |
Kilbourne |
1.50 |
22,423 |
2.91 |
653 |
Source: BBA USA Inc., 2024.
Notes to Table 1:
- The independent Qualified Person
for the Mineral Resource Estimate, as defined by NI 43-101 is Mr.
Todd McCracken (PGO 0631) of BBA USA Inc. The effective date of
this Mineral Resource Estimate is December 3, 2024.
- Three-dimensional (3D) wireframe
models of mineralization were based on the geological
interpretation of the logged lithology and sub-domained based on
contiguous grade intervals greater than or less than 0.50% Cg
defining two mineralized sub-domains.
- Geological and block models for the
Mineral Resource Estimate used data from a total of 45 surface
diamond drill holes (core) and 1 surface channel sample. The drill
hole database was validated prior to mineral resource estimation
and QA/QC checks were made using industry-standard control charts
for blanks and commercial certified reference material inserted
into assay batches by Empire State Mine personnel.
- Quantities and grades in the
Mineral Resource Estimate are rounded to an appropriate number of
significant figures to reflect that they are estimations.
- The mineral resource estimate was
constrained using the following optimization parameters, as agreed
upon by Empire State Mine and the QP. The parameters include mining
costs of $4.60/ton for mineralized rock, $3.50/ton for
unmineralized rock, and $2.00/ton for overburden and tailings, with
a 5.0% dilution and 95.0% mining recovery. Processing costs are
$14.00/ton milled, with a 91.0% processing recovery and a
concentrate grade of 95.0%. No general and administrative (G&A)
costs were applied. The selling price is $1,090/ton of concentrate,
with transportation costs of $50/ton and no additional selling
costs. The overall slope angles are 23 degrees for overburden and
tailings, and 45 degrees for rock.
- Process recovery estimates based on
Phase I testing done at SGS Lakefield and Forte Dynamics, open
circuit recovery 86.5% with expected increase to 90-91% in closed
circuit.
- The reported mineral resource
estimate has been tabulated in terms of a pit-constrained cut-off
value of 1.50% Cg.
- The block model was prepared using
Datamine Studio RM™. A 30 ft x 30 ft x 15 ft block model was
created, and samples were composited at 5.00 ft intervals. Grade
estimation for graphite used data from drill hole data and was
carried out using Ordinary Kriging (OK), Inverse Distance Squared
(ID2), and Nearest Neighbor (NN) methods. The OK methodology is the
method used to report the mineral estimate statement.
- Grade estimation was validated by
comparison of the global mean block grades for OK, ID2, and NN by
domain and composite mean grades by domain, swath plot analysis,
and by visual inspection of the assay data, block model, and grade
shells in cross-sections.
- The specific gravity (SG)
assessment was carried out for all domains using measurements
collected during the core logging process. The mean specific
gravity value within the mineralized domains is 2.75.
- The Mineral Resource Estimate was
prepared following the CIM Estimation of Mineral Resources &
Mineral Reserves Best Practice Guidelines (November 29, 2019).
Sensitivity Analysis
The results of grade sensitivity analysis are
presented in Figure 2 to illustrate the continuity of the grade
estimates at various cut-off increments and the sensitivity of the
mineralization to changes in cut-off grade. The reader is cautioned
that figures in the following chart should not be misconstrued as
Mineral Resources or confused with the Mineral Resource Statement
reported above. These figures are only presented to show the
sensitivity of the block model estimated grades and tonnages to the
selection of cut-off grade. Cut-off at the Kilbourne Graphite
Project was set at 1.50% (Cg).
Figure 2: Kilbourne Graphite:
Revenue Factor Sensitivity
Source: BBA USA Inc., 2024.
Table 2: Kilbourne Graphite
Revenue Factor Sensitivity
$USD per Ton Concentrate |
RF |
Graphite (%) |
Mill Feed(k Ton) |
Contained Graphite(k Ton) |
Waste(k Ton) |
Overburden (k Ton) |
872.00 |
0.80 |
3.30 |
7,198 |
238 |
4,810 |
3,532 |
926.50 |
0.85 |
3.19 |
10,627 |
339 |
9,247 |
5,763 |
981.00 |
0.90 |
3.05 |
14,987 |
457 |
13,578 |
9,261 |
1035.50 |
0.95 |
2.99 |
18,303 |
547 |
18,824 |
11,072 |
1090.00 |
1.00 |
2.91 |
22,423 |
653 |
25,278 |
13,425 |
1144.50 |
1.05 |
2.86 |
25,109 |
719 |
29,871 |
14,557 |
1199.00 |
1.10 |
2.81 |
28,790 |
808 |
36,399 |
16,528 |
1253.50 |
1.15 |
2.76 |
32,401 |
895 |
44,365 |
18,400 |
1308.00 |
1.20 |
2.73 |
36,959 |
1,009 |
56,969 |
21,433 |
Source: BBA USA Inc., 2024.Note: RF is a
reference to Revenue Factor.
Further Potential for
Growth
The Company is planning Phase II drilling at
Kilbourne, with a projected start date in H1 2025. The primary goal
of the program is to raise mineral resource confidence from
Inferred to Measured/Indicated status within the core of the
Kilbourne mineral resource area. Drilling will also aim to extend
zones of high-grade mineralization, and test the extensions of
mineralization along strike, and down dip. Phase II will consist of
an additional 12,000 ft of drilling.
Phase I of drilling successfully tested roughly
8,250 ft of Kilbourne strike length. The Company holds mineral
rights on over 15,000 ft of additional Unit 2 strike length. This
includes 8,000 ft to the east, and 7,500 ft to the south. Historic
drilling and surface mapping documents graphite mineralization,
however there are no historic assays to confirm these observations.
To date, a little over 30% of the Kilbourne trend has been tested
with drilling. Exploration planning is underway to further test
these extensions.
Next Steps
De-risking Metallurgy: Phase III test program at
SGS Lakefield is designed to de-risk metallurgy by defining a
flowsheet and conditions that will serve as input into the
engineering of the commercial demonstration plant. The
metallurgical flowsheet optimization work is conducted on a
composite that aims to replicate the overall mineral resource. The
robustness of the optimized flowsheet and conditions are verified
with a series of variability composites.
The data from the SGS work will then be utilized
to develop the mass and water balance, process design criteria, and
process flow diagram of the commercial demonstration plant, which
are expected to be completed by the end of Q4 2024. These documents
will be the building blocks to complete equipment selection and
engineering for the commercial demonstration plant. Further
metallurgical work programs will be defined based on operating data
of the commercial demonstration plant.
Establishing product-segmentation: The Phase III
test program will be used for defining market and product
segmentation for potential products from the Kilbourne Graphite
Project and for refining the scope of a commercial demonstration
plant.
Commercial demonstration plant: The Kilbourne
Graphite Project has a unique advantage of being hosted within
ESM’s mine permit boundary, which has an existing mill, established
infrastructure and a trained workforce. The Company is targeting
production of concentrate from a commercial demonstration plant in
2025 to be co-located within the existing ESM mill facilities and
benefiting from the shared infrastructure and operational talent
present on site. This is expected to be the first commercial
demonstration plant in full run-time in the United States capable
of delivering to the US supply chain.
Preliminary Economic Assessment: Titan will
begin preparation of an NI 43-101 Preliminary Economic Assessment
for the Kilbourne Graphite Project in H1 2025 with the goal of
defining project economics and delivering a phased approach to the
development of the Kilbourne Graphite Project. Permitting for the
expanded scope of operations is subject to a state level
process.
An NI 43-101 technical report supporting the
mineral resource estimate disclosed herein will be filed on SEDAR+
within 45 days of this press release.
Quality Assurance and Quality
Control
Core drilling was completed using ESM owned and
operated drills which produced AWJ (1.374 in) size drill core. All
core was logged by ESM employees. The core was washed, logged,
photographed, and sampled. All core samples were cut in half,
lengthwise, using a diamond saw with a diamond-impregnated blade
and sampled on 5 ft intervals with adjustments made to match
geological contacts. After a sample is cut, one half of the core
was returned to the original core box for reference and long-term
storage. The second half was placed in a plastic or cloth sample
bag, labeled with the corresponding sample identification number,
along with a sample tag. All sample bags were secured with staples
or a draw string, weighed and packed in shipping boxes. Shipping
boxes are placed onto pallets and shipped by freight to SGS
Lakefield laboratory in Lakefield, ON, Canada for sample
preparation and graphitic carbon analysis. Pulps are forwarded to
SGS Burnaby laboratory in Burnaby, BC, Canada for multi-element
analysis. SGS Lakefield is a Canadian accredited laboratory
(ISO/IEC 17025) and independent of ESM. SGS Lakefield prepares the
pulps and analyzes each sample for graphitic carbon (Cg-CSA06V)
with a detection limit of >0.01%. Pulps are shipped to SGS
Burnaby for multi-element analysis by aqua regia digestion
(GE-ICP21B20 for 34 elements) with an ICP – OES finish. All samples
in which silver, calcium, manganese, iron, zinc and sulfur exceed
their upper limit are re-run using methods of aqua regia digestion
(Fe-ICP21B100), four acid digestion (Ag, Ca, Zn, and Mn-ICP42Q100)
and infrared combustion (S-CSA06V) with the elements reported in
percentage (%). Standards and blanks are inserted during the
logging process. The assays for QA/QC samples are reviewed as
certificates are received from the laboratory. Failures are
identified on a batch basis and followed up as required. The
scientific and technical information disclosed herein has been
verified by Todd McCracken of BBA USA Inc., using data validation
and quality assurance procedures under high industry standards. The
verification activities included a search for factual errors,
completeness of the lithological and assay data, and suitability of
the primary data. As part of the database verification activities,
the assay information and certificates obtained directly from the
analytical laboratory have been examined as well. Mr. McCracken has
not identified any legal, political, environmental, or other risks
that could materially affect the potential development of the
mineral resources disclosed herein.
Qualified Person
The technical and scientific information in this
news release has been reviewed and approved by Todd McCracken of
BBA USA Inc. Mr. McCracken is a Qualified Person as defined by
National Instrument 43-101 and is independent of Titan.
About Titan Mining
Corporation
Titan is an Augusta Group company which produces
zinc concentrate at its 100%-owned Empire State Mine located in New
York state. The Company is focused on value creation and operating
excellence, with a strong commitment to developing critical mineral
assets that enhance the security of the U.S. supply chain, and the
Kilbourne Graphite Project is a core part of this strategy. For
more information on the Company, please visit our website
at www.titanminingcorp.com.
Contact
For further information, please contact: Rita
Adiani, President, Email: radiani@titanminingcorp.com, Investor
Relations, Email: info@titanminingcorp.com
Cautionary Note Regarding
Forward-Looking Information
Certain statements and information contained in
this new release constitute "forward-looking statements", and
"forward-looking information" within the meaning of applicable
securities laws (collectively, "forward-looking statements"). These
statements appear in a number of places in this news release and
include statements regarding our intent, or the beliefs or current
expectations of our officers and directors, including that
potential for mineral resource expansion along strike and down dip,
almost entirely hosted within the existing active use permit;
Kilbourne is targeted to be fast-tracked to commercial production
to secure the preferred US domestic supply chain; metallurgical
test work in progress at SGS Lakefield is due for completion in Q4
2024; this will provide product segmentation information and refine
the flowsheet for a commercial demonstration plant, producing
graphite concentrate at full run-time, to be co-located within the
existing mill at ESM; there remains significant potential to expand
the mineral resource estimate within the ESM mineral tenure, to
potentially fully meet US domestic needs, and to secure our supply
chain; with significant operational synergies, Titan is targeting
being the first US commercial producer of natural flake graphite
delivering to a broad spectrum of US based customers; the maiden
mineral resource estimate at Kilbourne together with existing
infrastructure at ESM allows Titan to fast-track the development of
the Kilbourne Project; our short-term focus is to de-risk the
process and end products through the Phase III program currently in
progress at SGS Lakefield; following that test work, Titan will
engineer, build and operate a commercial demonstration plant on
site during FY 2025; this process will allow Titan to deliver a
variety of high value natural flake graphite products to US
consumers and build our product offering prior to potentially
scaling production, following relevant studies, in the ensuing 18
months; this approach will maximize pricing for our products and
ensure we build a facility which matches demand; Phase II will
consist of an additional 12,000 ft of drilling, in addition to the
roughly 8,250 ft tested during Phase I drilling at Kilbourne, and
the Company holds the mineral rights on over 15,000 ft of
additional Unit 2 strike length; Phase III test program at SGS
Lakefield is designed to de-risk metallurgy by defining a flowsheet
and conditions that will serve as input into the engineering of the
commercial demonstration plant; the metallurgical flowsheet
optimization work is conducted on a composite that aims to
replicate the overall mineral resource; the robustness of the
optimized flowsheet and conditions are verified with a series of
variability composites; the data from the SGS work will then be
utilized to develop the mass and water balance, process design
criteria, and process flow diagram of the commercial demonstration
plant, which are expected to be completed by the end of Q4 2024;
these documents will be the building blocks to complete equipment
selection and engineering for the commercial demonstration plant;
further metallurgical work programs will be defined based on
operating data of the commercial demonstration plant; the Phase III
test program will be used for defining market and product
segmentation for potential products from the Kilbourne Graphite
Project and for refining the scope of a commercial demonstration
plant; the Company is targeting production of concentrate from a
commercial demonstration plant in 2025 to be co-located within the
existing ESM mill facilities and benefiting from the shared
infrastructure and operational talent present on site; this is
expected to be the first commercial demonstration plant in full
run-time in the United States capable of delivering to the US
supply chain; Titan will begin preparation of an NI 43-101
Preliminary Economic Assessment for the Kilbourne Graphite Project
in H1 2025 with the goal of defining project economics and
delivering a phased approach to the development of the Kilbourne
Graphite Project; permitting for the expanded scope of operations
is subject to a state level process; an NI 43-101 technical report
supporting the mineral resource estimate disclosed herein will be
filed on SEDAR+ within 45 days of this press release. When used in
this news release words such as "to be", "will", "planned",
"expected", "potential", and similar expressions are intended to
identify these forward-looking statements. Although the Company
believes that the expectations reflected in such forward-looking
statements and/or information are reasonable, undue reliance should
not be placed on forward-looking statements since the Company can
give no assurance that such expectations will prove to be correct.
These statements involve known and unknown risks, uncertainties and
other factors that may cause actual results or events to vary
materially from those anticipated in such forward-looking
statements, including the risks, uncertainties and other factors
identified in the Company's periodic filings with Canadian
securities regulators. Such forward-looking statements are based on
various assumptions, including assumptions made with regard to the
ability to advance exploration efforts at ESM; the results of such
exploration efforts; the ability to secure adequate financing (as
needed); the Company maintaining its current strategy and
objectives; and the Company's ability to achieve its growth
objectives. While the Company considers these assumptions to be
reasonable, based on information currently available, they may
prove to be incorrect. Except as required by applicable law, we
assume no obligation to update or to publicly announce the results
of any change to any forward-looking statement contained herein to
reflect actual results, future events or developments, changes in
assumptions or changes in other factors affecting the
forward-looking statements. If we update any one or more
forward-looking statements, no inference should be drawn that we
will make additional updates with respect to those or other
forward-looking statements. You should not place undue importance
on forward-looking statements and should not rely upon these
statements as of any other date. All forward-looking statements
contained in this news release are expressly qualified in their
entirety by this cautionary statement.
Photos accompanying this announcement are available
at:https://www.globenewswire.com/NewsRoom/AttachmentNg/733ff49b-6bad-4aca-b699-2dbf19457453https://www.globenewswire.com/NewsRoom/AttachmentNg/82a3f25d-6e7f-41e3-a6cf-9b7c8c23ab3b
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