Mont Sorcier Project Making Good Progress

The most recent news, dated 2025-10-20, provides an update on the Mont Sorcier iron/vanadium project, where Chibougamau Independent Mines Inc. (CBG) holds a 2% Gross Metal Royalty (GMR). Cerrado Gold Inc., the operator of the project, has completed a 17,000-meter infill drilling program. The purpose of this drilling is to upgrade sufficient resources to the Proven and Probable categories, which is required to support the ongoing Feasibility Study (FS). The completion of the Feasibility Study is now targeted for Q2 2026. Additionally, new test work has demonstrated the ability to produce a high-purity DRI-grade iron concentrate product, exceeding 67% iron. This enhancement is expected to improve the project's position in the context of the green steel transition.

This news is generally positive for Chibougamau Independent Mines Inc., a royalty holder on the Mont Sorcier project. 1. Completed Infill Drilling: The completion of 17,000 meters of infill drilling is a significant de-risking step. It aims to upgrade mineral resources to Proven and Probable categories, which are necessary for a robust Feasibility Study and subsequent mine planning and financing. This systematically moves the project closer to production. 2. High-Purity Product Confirmed: The confirmation that the project can deliver a DRI-grade iron concentrate product exceeding 67% iron is a strong positive. This higher grade and purity enhance the project's economics and marketability, aligning it with the growing demand for "green steel" inputs. This confirms earlier metallurgical test work results. 3. Feasibility Study Timeline Shift: The target for FS completion has shifted from Q1 2026 (as per news on 2024-12-04 and 2025-05-01) to Q2 2026. While a minor delay, any slippage in timelines is a slight negative, especially for a company like CBG that relies on project advancement for future cash flows. 4. Overall Impact: For a company whose primary long-term value driver is its royalty on Mont Sorcier, systematic progress, de-risking through drilling, and confirmation of a premium product are positive developments. The slight delay in the FS completion is noted but overshadowed by the confirmed technical improvements and progress on the ground. The news is in line with previous expectations regarding the quality of the concentrate and ongoing work, though the timeline for the FS has adjusted. Given the nature of a royalty, CBG incurs no direct costs from this work, but benefits directly from project de-risking and improved economics.

Therefore, the material impact is Routine - Positive, as it signifies steady progress and strengthens the project's technical profile, despite a minor timeline adjustment.

Chibougamau Independent Mines Inc. (TSX-V: CBG) is a junior mining company primarily focused on exploration and holding royalty interests in mining projects, predominantly in Quebec, Canada.

Its most significant asset is a 2% Gross Metal Royalty (GMR) on the Mont Sorcier iron and vanadium deposit, located near Chibougamau, Quebec. This project is 100% owned and operated by Cerrado Gold Inc. The Mont Sorcier project is currently undergoing a Bankable Feasibility Study (BFS) targeting the production of high-purity, direct-reduction-iron (DRI) grade iron concentrate (>67% iron), which positions it favorably for the "green steel" transition. A 2022 Preliminary Economic Assessment (PEA) projected a post-tax NPV8% of US$1.6 billion (C$2.25 billion) at a 65% iron concentrate. The current metallurgical work aims to further enhance this to over 67% iron with low impurities. The project has substantial indicated resources of 678.5 million tonnes (36.4% Fe2O3, 0.20% V2O5) and inferred resources of 546.6 million tonnes (34.1% Fe2O3, 0.17% V2O5).

CBG also holds various other mineral properties, including Berrigan South, Berrigan Mine, Antoinette, Elaine Lake, and Gwillim, which have been optioned to TomaGold Corp. for a combination of cash, shares, and exploration expenditures over a six-year period.