Nevado Resources has signed a letter of agreement with Kunming Metallurgical Research Institute of China Yunnan Metallurgical (Kunming China) for a titanium (Ti), vanadium (V), and iron (Fe) process method at its La Blache deposit in Canada.

The company requested a programme to demonstrate the mineral processing strategy to separate, concentrate, and recover Ti, V, Fe minerals from the property, which is located some 150km north-west of Baie-Comeau in the Upper North Shore region of Quebec.

Kunming China has conducted preliminary mineralogy tests in October 2013 on a piece of selected Ti-V-Fe rich sample from the property.

Results obtained from the tests recommend the execution of a two-stage programme consisting of a bench scale mineral processing study and a 20t plant demonstration test programme, which will complete proof-of-concept of the underlying metallurgical process.

Kumning will use a physical separation method and a surface chemistry method, collectively, the Kunming Process, based on the physical and surface-chemistry properties of the Ti-V-Fe minerals.

Nevado will deliver a 200kg sample of La Blache Ti-V-Fe rich material to the laboratory of Kunming China, which will then initiate the Kunming Process and will first examine the mineralogy of the sample.

Kunming China will also determine the grinding fineness to liberate Ti-V-Fe minerals and gangs from the sample matrix.

The deliverable plant test will feature a circuit pilot plant run programme, including optimisation, which is expected to last for a minimum of 15 days and to process one ton/day of the bulk sample, along with a final report including conclusions and recommendations.

The test will provide technical and economic data on the process and efficiency in order to design a mineral processing plant.

Nevado president and chief executive officer Michael Curtis said the company has worked with Murtti Capital to find the right firm to properly test La Blache’s sample and to figure out the best method to concentrate and process it.

"The program designed by Kunming China will ensure that, at the end of day, NEVADO will own the formula to build a Ti-V-Fe mineral processing plant in Canada," Curtis added.

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