Strategic Resources (TSXV:SR) is advancing two principal vanadium-titanium-magnetite (VTM) assets: the permitted BlackRock project in Quebec, Canada, and the past-producing Mustavaara mine in central Finland. The company believes in the decarbonization of the steel industry and the growing adoption of vanadium redox flow batteries (VRFB).

In an interview with MiningFeeds, Strategic Resources CEO Sean Cleary discussed how the company differentiates itself in the critical metals space. “We differentiate ourselves by stage and by backing. The mine site and separate metallurgical facility in Quebec have gone through and completed two separate permitting processes. The company is backed by the Quebec Government, Orion Mine Finance and Ross Beaty’s Lumina Group.”

The company plans to produce high-grade iron ore pellets, hot briquetted iron and high-purity pig iron, which are required in green steel and high strength steel alloys. Titanium is also a critical metal that supports certain alloys. On the vanadium side, its main use is strengthening steel, but there are a growing number of vanadium battery deployments globally, which is important for storage of variable electrical power like wind and solar. Sean Cleary continued, “”For Phase One, the study results have just been released for our iron ore pellet plant ($500 million capex) which is a more manageable size and complexity to reduce execution risks. The study is our first look at using existing permits to build a 4 million tonnes per annum plant at Port Saguenay in Quebec. We plan to access nearby and seaborne iron ore markets and run the plant on a merchant basis initially.”

Strategic Resources is taking a phased approach to the BlackRock project in Quebec. “We believe that phasing the BlackRock Project is the best approach to reduce construction risk and it allows us to evolve a better long term strategic plan. Instead of investing ~$1.5 billion of capital for the overall project, we plan to approach the project in stages,” said Cleary.

For Phase One, the company recently released study results for an iron ore pellet plant with a $500 million capex. The study looked at using existing permits to build a 4 million tonnes per annum plant at Port Saguenay in Quebec. Strategic Resources plans to access nearby and seaborne iron ore markets and run the plant on a merchant basis initially. The company is working to secure offtake for the iron ore feed and project financing, with the goal of commencing construction in 2025 and production in 2028.

The Mustavaara mine in Finland, which was previously operated, is viewed as a medium-term feed opportunity to complement the BlackRock operations in Quebec. The two mines would produce very similar concentrates that could be processed at the Port Saguenay metallurgical facility.

Strategic Resources is working to secure financing for the construction of Phase 1 of the BlackRock project, with Orion Mine Finance and Investissement Québec as key shareholders. “The company is working to secure a trading partner that could deliver direct reduction grade iron feedstock. Following that, Strategic expects to work with a project finance bank and our shareholders to put together a funding package,” the CEO explained. The company is also engaged in discussions with companies in the iron and green steel space about possible collaboration on the Port Saguenay facility.

The recent announcement of government-funded conveyor construction at the Port of Saguenay is seen as a significant help to the development of the BlackRock project. The transition from blast furnace steelmaking to electric arc furnace steelmaking, supported by government funding globally, is expected to fuel demand for metallic iron products. Vanadium battery storage options will also continue to grow the vanadium market over time.

Looking ahead, key milestones for Strategic Resources include securing feed stock offtake partners and advancing the debt finance package. With over C$150 million spent to drill, derisk and permit the BlackRock project, and the company currently valued at a fraction of that, Strategic Resources has plenty of opportunity in the critical metals space.