pipestone lake project

Vanadium/Titanium/Iron

Our 50% joint venture partner in the Pipestone Lake Deposit, Cross Lake Mineral Explorations Inc., is a wholly-owned private corporation of the Cross Lake First Nation.

It has been involved in protracted negotiations with the Federal and Provincial governments to settle the Nelson River Flood Agreement. Development of the Pipestone Lake Deposit has been stalled pending this settlement. As a result, Gossan decided to offer the 3584-hectare property for sale. Gossan has appointed a representative to assist in the negotiations for the development or sale of this property and discussions are ongoing. Gossan is currently considering conducting a limited surface field program at the Pipestone Property.

In July 2008, the Cross Lake First Nation held a mining symposium at Cross Lake. Gossan was a Sponsor of the symposium and management presented information on the Pipestone Project at an exhibitor’s booth.

The Pipestone Lake property is located in north central Manitoba, approximately 150 km south of Thompson. At Pipestone Lake’s Areas 1 and 2, drilling to date has outlined a non-compliant NI 43-101 indicated resource of 156.8 million tonnes grading 5.56% TiO2, 28.11% Fe2O3 and 0.22% vanadium pentoxide (Reedman & Associates 1998). Additional infill drilling could significantly increase the resource.

A preliminary mine plan has been prepared for the Pipestone by J. H. Reedman and Associates which classifies various tonnages according to titanium dioxide cut-off grades, provides proposed open pits, and estimates stripping ratios; however more detailed drilling is required to support a 30,000 tons per day operation. Metallurgical studies by Dr. D. Yang have provided a flow sheet for the economic processing of titanium dioxide, vanadium pentoxide and magnetite; however more metallurgical work will be required. These studies will form the basis for a feasibility study of the deposit.

Paints, paper and plastics are the main users of titanium dioxide, while the magnetite and vanadium pentoxide are mostly used in the steel industry. Vanadium may play an important new role in electrical storage technology which could substantially increase demand for this metal.