Resource World Magazine

A P R I L / M A Y 2 0 1 9 www.resourceworld.com 35 N ew junior resource company Delrey Metals Corp. [DLRY-CSE; DLRYF- OTC; 1OZ-FSE] is primarily targeting vanadium in Canada. Having listed on the CSE in fall 2018 with its Sunset Cu-Zn-Co project near Whistler, British Columbia, Delrey immediately made two agreements for 100% interests in four coastal British Columbia vanadium properties at early exploration stages. In a recent interview with Resource World, Morgan Good, President and CEO, sounded excited about recently acquiring the advanced Four Corners vanadium- iron-titanium project in mining-friendly western Newfoundland. Delrey signed a non-binding term sheet to acquire an 80% interest in the project from Four Corners Mining Corp./Triple Nine Resources Ltd. and to establish a joint ven - ture. The 5,070-hectare project is 25 km east of Stephenville. The property hosts titanium-vanadium enriched magnetite mineralization with historical evidence for significant and consistent mineralization across the property. To earn its interest, Delrey must pay $450,000, issue 12 million shares and spend $5 million on exploration – all in stages – plus deliver a prefeasibility study. The project is subject to a 3% net smelter returns royalty. Upon exercise of the option, a joint venture will be created, the form of which has yet to be determined. The original target, the Keating Hill East magnetic anomaly, was mapped by the Geological Survey of Canada to be at least 4,500 metres long with widths of 400 to 1,100 metres and extending from surface to 590 metres vertically (open at depth), conservatively representing a potential target of over 2B tonnes (there is no grade estimate). Airborne geophysics has identified three target anomalies, increasing the potential mineralized strike length to greater than 12 km. Preliminary surface sampling confirms the same style of min - eralization found at the Keating Hill East is producing the new anomalies which will be targeted for follow-up ground truthing. Representative grab samples across the mineralized strike length assayed >40% Fe, 5% Ti, and 0.30% V 2 O 5 with assays returning up to 56.92% Fe, 15.13% Ti, and 0.39% V 2 O 5 . SRK Consulting completed prelimi- nary metallurgy with concentrate samples returning an impressive 0.643% V 2 O 5 .. Initial runs produced a concentrate with >90% recovery of vanadium. The property has excellent infrastruc- ture and is transected along its entire length by the Burgeo Highway (Route 480) and a 33-MW powerline. It is only 40 km along paved highway east of the deep water, ice-free, Port Harmon Complex. Back in BC, the Sunset property, origi - nally explored for copper and zinc along the lower Soo River near Whistler, is underlain by Mesozoic metavolcanics simi- lar to those hosting the historical Britannia Mine. Sulphide mineralization is found in veins containing pyrite and chalcopy- rite, with disseminated sphalerite. Cobalt anomalies were also discovered along with minor gold and silver values (such as 0.146 g/t Au and 0.9 g/t Ag). A 2017 NI 43-101 technical report by Barry Price qualified Delrey Metals for listing on the CSE. November 2018 work defined at least one zone with up to 4.3% copper. Delrey has already made a 2% NSR agreement with Cobalt 27 Capital Corp. [KBLT-TSXV; CBLLF-OTCQX; 27O-FSE] regarding the cobalt potential at Sunset. In December 2018, a share agreement with BC Vanadium Corp. brought Delrey the Porcher and Star projects near the com - munity of Oona River on Porcher Island, close to the port of Prince Rupert. By the end of January, another agreement with Western Energy Metals landed the Blackie Project on Banks Island and the Peneece Project on Seymour Inlet. All of these prospects are underlain by gabbro host - ing titanium-magnetite deposits, known to contain vanadium, and all are accessible to tidewater. Of these four Fe-Ti-V prospects, Porcher yielded historic concentrate grades ranging from 0.34% to 0.84% V 2 O 5 , and samples from Blackie show the highest grade of vanadium so far – about 2.14% V 2 O 5 . According to Good, Delrey and local First Nations near their properties have coop- erative relations. Work for 2019 includes aeromagnetic surveys over the BC proper- ties and following up encouraging results with fieldwork to define drill targets. Delrey has enough resources to carry out 2019 exploration plans and to become involved in new agreements – about $1.4 million. In the interview, Morgan Good empha - sized the "well-structured and tightly held" capital structure of Delrey. He said that management "has skin in the game" with ~10% direct ownership with associ- ates and close supporters holding ~60% of the 33.6 million shares. The international market for vana- dium is strong with increasing demand for vanadium-strengthened steel as well as the emerging need for vanadium redox batteries, which are ideal for long-term alternative energy storage. n Morgan Good, President and CEO OF Delrey Metals Corp. Photo by Matt Watson. Delrey Metals targets Canadian vanadium by Jennifer S. Getsinger, PhD, PGeo MINING

• Cover