Resource World Magazine

58 www.resourceworld.com A P R I L / M A Y 2 0 1 8 CORNERSTONE METALS INC. [CCC- TSXV; APPPF-OTC], viewing vanadium as the foundation of future large-scale energy storage, is concentrating efforts on its Carlin Vanadium prospect in Nevada. Cornerstone also holds a high-grade cop- per and zinc target near the historical mining town of Jerome, Arizona. In a recent interview with Paul Cowley, PGeo, President and CEO, he told Resource World there has been a "sizzle in the market" around vanadium as a strategic metal for North America, both in its tra- ditional uses as a strengthener in lighter steel alloys and its newer applications in grid-scale battery storage. Vanadium met- als prices have more than quadrupled in the last two years on both supply and demand pressures. On February 16, 2018, the United States government released a draft list of The 35 minerals critical to US national security. Along with cobalt, rare earth elements, and many other listed minerals, vanadium has increasing uses in modern manufactur- ing and electronics, and is mostly acquired from other continents (China, South Africa, and Russia are the main suppliers). Vanadium is known for strengthening steel and making it lighter, from traditional Damascus steel sword blades of the past to saving energy with making automobiles less heavy. Vanadium (often along with titanium) alloy steel can strengthen tall buildings and jet engines. Its most talked- about new uses, however, are in green technologies, such as large batteries for electric grid energy storage. Unlike some of the other elements used in batteries, it is less reactive and less expensive, although increasing in price due to scarcer supply. Cornerstone has acquired the rights to 72 mineral claims (461 hectares) near Carlin, Nevada where it is currently updating a historical estimate on what is believed to be a large primary deposit of vanadium. Unlike in some other geological contexts where vanadium might be asso- ciated with titanium in iron ore or with uranium in sandstone, here vanadium occurs invisibly in Paleozoic era black (carbonaceous) shale. Carbonaceous shales with elevated concentrations of vanadium were discovered on the property during an early drilling project of Union Carbide in the 1960s, which defined a near-surface, shallow-dipping, strata-hosted deposit. The Carlin vanadium project consists of stratigraphically controlled V 2 O 5 con- centrations in the Devonian Woodruff Formation above the Roberts Mountain thrust fault. Vanadium is assumed to have been introduced syngenetically, precipi- tated from seawater, in a kind of SEDEX deposit, although biological concentration through micro-organisms could have been a factor, as kerogen hydrocarbons are asso- ciated with the higher grades. Not much further vanadium explora- tion work was done here (also in part because the area is so attractive to those seeking silver and gold mines) until the price of vanadium began its recent boom. The vanadium target at Cornerstone's Carlin property is generally horizontal, considered to be at least 180 feet (55 m) thick, 6,100 feet (1,860 m) long and 2,500 feet (762 m) wide, mostly quite shallow, within 200 feet (61 m) of the surface. (data from Cowley, pers. comm., and technical report on SEDAR). Estimated size of the vanadium-bearing deposit is 20 to 28 mil- lion tonnes. This puts it in the range of one of North America's largest known primary vanadium targets. The rocks also yield elevated values of silver and zinc. In 2010, SRK conducted a study of the historic min- eral estimates and came up with 28 million tons of Inferred resources (cut-off grade 0.3%) at 0.515% V 2 O 5 containing 289 mil- lion pounds of V 2 O 5 . The company just finished a 20-hole confirmation drill program. An updated resource report could be produced in 2018 given success of an additional planned 60-hole RC drilling program. After that a PEA is planned. Cowley visualizes an open pit mine with a less than 2:1 stripping ratio. He is also enthusiastic about new developments in technological improve- ments to known recovery processes. In addition to Cowley, some key people also on the team are Fred Sveinson, P.Eng. (mining engineer), Mike Mrackek, P.Eng. (advising mining engineer), and Radomir Vuksevic, Ph.D. (metallurgist). Permitting could be streamlined as vanadium is a critical metal and deemed critical to the economy and security of the United States. Cowley said that the "in-situ gross metal has a value of some $4 billion, approximately equivalent to a 3 million ounce gold mine." n Paul Cowley, President and CEO, during the confirmation drilling program at the Carlin Vanadium prospect in Nevada. Photo courtesy Cornerstone Metals Inc. Vanadium: cornerstone of future energy storage by Jennifer S. Getsinger, PhD, PGeo MINING

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