PhosCan Chemical Corp.

PhosCan Chemical Corp.

March 26, 2009 11:45 ET

PhosCan Chemical Signs Agreement for the Evaluation of the Niobium at the Martison Property

TORONTO, ONTARIO--(Marketwire - March 26, 2009) - PhosCan Chemical Corp. (TSX:FOS) announces that it has signed an agreement with IAMGOLD Corp. (TSX:IMG)(NYSE:IAG) for the evaluation of the potential to recover and sell niobium contained on the Martison Property.

IAMGOLD owns and operates the Niobec underground mine located near Chicoutimi, Quebec, which is North America's only source of pyrochlore, the primary niobium ore. Under the agreement, PhosCan will provide IAMGOLD samples of niobium-enriched material from the Martison Property and tailings material from the Company's ongoing pilot-plant beneficiation testing of the Martison Phosphate Deposit. Using this material, IAMGOLD will, at its own expense, test the commercial viability of extracting the niobium from both materials. Upon completion of this testwork, IAMGOLD may elect to conduct, at its own expense, a feasibility study in respect of the extraction, processing and marketing of the niobium. Upon completion of the feasibility study, IAMGOLD may elect to enter into a joint venture with PhosCan to extract, process and market niobium from the Martison Phosphate Deposit. In return for funding all capital costs related to the extraction and processing of the niobium, IAMGOLD would earn the right to market the niobium and an interest in the profits from the sale of the niobium.

The Martison Phosphate Deposit contains low grade niobium mineralization and is also overlaid by a higher-grade niobium-enriched lateritic oxide cap in the northern portion of the Martison Property. The Company's NI 43-101 compliant technical report "Martison Phosphate Project Preliminary Feasibility Study" dated May 16, 2008 outlined a measured and indicated resource containing at least 62.3 million in-situ tonnes of phosphatic material averaging 23.55% P2O5 (phosphorus oxide) and 0.34% Nb2O5 (niobium oxide) and a further 55.7 million tonnes of inferred resource averaging 21.87% P2O5 and 0.34% Nb2O5. The Company has not completed an NI 43-101 compliant resource calculation for the niobium-enriched cap.

"We are pleased to enter into this agreement with IAMGOLD", commented Stephen Case, President and CEO. "They are one of only a handful of parties that are truly knowledgeable about mining and marketing niobium and we look forward to working with them to evaluate the potential economic impact of the niobium on the development of the Martison Phosphate Project."

About PhosCan

PhosCan is engaged in the development of the Martison Phosphate Project, which consists of the Martison Phosphate Deposit and a planned phosphate mine, beneficiation plant, conversion complex and solid fertilizer production facility. The Martison Deposit is located 70 kilometres north of Hearst, Ontario. The Company's proposed operations will be strategically located in proximity to the fertilizer markets in the agricultural regions of western Canada and mid-western United States with ready access to excellent infrastructure including rail, power and labour.

Contact Information

  • PhosCan Chemical Corp.
    Stephen Case
    President & CEO
    (416) 972-9222