Lac Dore feasibility study positive

McKenzie Bay International Ltd “MKBY” OTC - announces that engineering firm, SNC Lavalin Inc “SNC”, has completed a Feasibility Study recommending continued development of a mine and processing plant at the Lac Dore Vanadium deposit near Chibougamau, Quebec. The Study reveals that Lac Dore could produce the highest purity Vanadium for the manufacture of Vanadium Electrolyte “VE”. As indicated in Secor’s Marketing Study, demand for Vanadium batteries requiring high-purity VE is very large allowing for very good economic potential.

Capital investment is estimated to be US$229 (C$364) million including all equipment, contingencies, and infrastructure costs. A 20-year mining plan was established over a small portion of the 10-mile long (16 km) deposit indicating a reserve of 80 million tonnes of ore (1.27 billion liters of VE). Initial annual VE production capacity is estimated at 63.5 million liters and total employment at more than 300. The next phase of development includes building a pilot plant to produce five million liters of VE annually, completion of engineering, financing and permitting prior to beginning construction. Plans are being finalized to begin this stage.

The principal product to be produced is VE. MKBY does not intend to produce metallurgical grade Vanadium Pentoxide “V2O5” for conventional steel alloy markets. SNC, in collaboration with Savanco, developed MKBY’s new process technology specifically to produce the highest purity Vanadium chemicals for the production of VE for use in Vanadium Redox Batteries. Lac Dore is expected to be the lowest cost VE producer in the world. Patent applications are being prepared to protect the new process technology.

The project has been developed according to high environmental standards minimizing any unanticipated environmental constraints to its implementation. SNC’s financial analysis of the project indicates a very good Internal Rate of Return “IRR” of 29.8%. MKBY management has calculated the project Net Present Value discounted @ 8% to be approximately US$190 million (C$301) or US$9.05/share (C$14.35).

SOQUEM INC., a division of SGF Mineral Inc, which is a subsidiary of Societe generale de financement du Quebec (“SGF”) has the right to acquire a 20% interest in the Lac Dore project upon acceptance of a positive bankable feasibility study.

For more information, see cheap cell phone batteries.

Author Notes:

Adalie Schnider contributes and publishes news editorial to http://www.1st-in-batteries.com. A great resource for batteries of all kinds including camcorder, laptop, cell phone and more.