CALGARY, Alberta, March 06, 2019 (GLOBE NEWSWIRE) -- Voyageur Minerals Ltd. (TSX.V:VM) (the “Company” or “Voyageur”) updates the progress on plans to produce a barium contrast product through its 50% owned joint venture, ImagingX Pharmaceutical Inc. (“ImagingX” or the “Joint Venture”).
The joint venture agreement includes a requirement for Voyageur to supply USP grade barium sulfate to the ImagingX manufacturing plant from either a third-party source or the Frances Creek property.
Recently, Voyageur supplied ImagingX with USP grade pharmaceutical barite from a third party. The amount supplied to date is sufficient for the Joint Venture to begin testing various compositions of contrast solution and to acquire the necessary regulatory permits for manufacture and sales. The manufacturing of barium contrast by ImagingX is expected to commence in the third quarter of 2019, initially with barium Sulfate from a third party.
Indicated and inferred barium sulfate resources have been reported for the Frances Creek property (“Voyageur 43-101 Frances Creek July 2018”). However, additional work is required to establish if these reported resources can supply a USP grade barium sulfate. The necessary steps to establish the suitability of Frances Creek to supply the ImagingX joint venture are:
- Complete work at SGS Canada Inc. to optimize the gravity separation, grinding, and acid leaching processes required for USP grade barium sulfate
- Engage a third-party engineering company to design the estimated 5 tonne per hour plant to process a bulk sample from Frances Creek (this plant would ensure a contamination free environment for the bulk sample testing and will have sufficient capacity to supply the ImagingX joint venture on a continuous basis)
- Preliminary Economic Assessment (PEA)
- Decision to proceed to:
- extract a 10,000 tonne bulk sample from Frances Creek (permit applied for),
- construct the 5 tonne per hour plant, and
- test the bulk sample
- Supply processed product that meets USP grade to the ImagingX manufacturing plant.
Subject to financing, the above steps are expected to be completed by mid to early 2020.
Frances Creek is an industrial mineral project and will be developed according to CIM Best Practice Guidelines for Industrial Minerals (CIM Industrial Minerals). These Guidelines anticipate that: “some industrial mineral ventures are relatively simple operations with low levels of investment and risk, where the operating entity has determined that a formal pre-feasibility or feasibility study in conformance with NI 43-101 and 43-101 CP is not required for a production decision”. The guideline further advises that: “where production has not yet commenced, there should be evidence of market and economic analyses consistent with sound judgement reflecting the spirit and intent of the requirements of NI 43-101 and 43-101 CP.”
The CIM Guidelines also caution that: “the lack of a formal pre-feasibility or feasibility study with respect to a venture should be clearly communicated to current and potential stakeholders as this may be considered a risk factor.” To mitigate these risks the Preliminary Economic Assessment (PEA) follows the third-party engineering design for the 5 tonne per hour plant. That PEA, together with the establishment of a proven contrast market through its ImagingX joint venture, follows the spirit of the CIM guidelines and will be used in the decision to construct the plant.
If the verification of supplying a pharmaceutical grade product from the mine to pharmaceutical manufacturing plant has been confirmed, Voyageur will apply for quarry permits and seek approvals for continuous production.
About ImagingX Pharmaceuticals Inc.
ImagingX is a 50:50 revenue sharing joint venture with Chief Medical Supply Ltd. The company will be manufacturing barium contrast suspension products for the health care industry worldwide. The joint venture’s target for initial sales is Q3 2019 and it plans on entering the market with a highly competitive product. Having a dedicated access to a rare high purity barium sulfate deposit such as France Creek would be a significant advantage to ImagingX in competing for a sizeable position in the barium contrast market place.
Initial sales of the product will focus on the Canadian market. After sales into the Canadian market have commenced, the joint venture will apply for certification and sales into Europe and the rest of the world.
About Chief Medical Supplies Ltd. (“Chief”)
Chief provides high quality, competitively priced pharmaceuticals and hemodialysis products to pharmacies and hospitals across Canada. Operating from both its 33,000 square-foot plant in Calgary, Alberta and its 90,000 square-foot facility in Mississauga, Ontario, Chief has both drug and medical device establishment licenses issued by Health Canada and is currently in the application phase with the FDA to market and sell Chief’s products in the United States.
Chief has the ability to turnkey production of ImagingX barium contrast products in their Health Canada manufacturing facilities.
About Voyageur Minerals Ltd. (“Voyageur”)
Voyageur is a Calgary based company which owns 100% interest in three barium sulfate ("Barite") deposits, and interests in a two high grade lithium brine projects in Utah, USA.
Voyageur's business plan is to develop its barite deposit at Frances Creek, BC, Canada, while it continues exploration for critical and strategic minerals. The Frances Creek project is moving forward to manufacture pharmaceutical grade barium sulfate and high purity Blanc fixe barium sulfate for the paint and plastic markets.
The Company’s qualified person as defined by NI 43-101, Mr. Brad Willis P. Eng (APEGA 179825), VP Exploration, has reviewed this news release and approved it.
For further information, please contact:
| John Rucci, CEO Cell (403) 383-8588 jrucci@voyageurminerals.ca | Steven R. Livingston, V.P. Finance Cell (403) 471-1659 steve@voyageurminerals.ca |
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements relating to the Qualifying Transaction, including statements regarding the acquisition of future assets, the discovery and commercialization of commercial quantities of industrial minerals, the successful commercialization of the Company’s assets, expected operational activities, other statements that are not historical facts. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These assumptions, risks and uncertainties include, among other things: the risk that the assets do not provide commercial quantities or grades of marketable minerals, that even if they do contain commercial quantities of marketable minerals that the Company will not be able to economically produce such discoveries, the existence of commercial grades of commercial minerals, timing of obtaining required approvals, state of the economy in general and capital markets in particular, investor interest in the business and future prospects of the Company.
The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters discussed above.