SAGA Metals acquires titanium property from Rio Tinto
Canadian critical minerals explorer SAGA Metals (TSXV: SAGA) has acquired a prospective titanium asset in Quebec from Rio Tinto’s (ASX: RIO) Canadian subsidiary.
The property, called Garneau, comprises 120 claims covering 64.5 sq. km within the Havre-Saint-Pierre anorthosite complex, a district known for hosting significant titanium-bearing deposits such as Rio Tinto’s Lac Tio mine, which is located 80 km away.
SAGA Metals’ CEO Michael Garagan called the transaction a” significant strategic advancement” for the company, citing its location within Quebec’s premier ilmenite district and in proximity to Rio Tinto’s world-class Lac Tio operation.
In a press release Thursday, Garagan noted that the geophysical signature of Garneau represents a “clear target for further exploration”, highlighting its basin-like morphology directly comparable to that of Lac Tio — one of the highest-grade hard rock titanium operations globally.
Having been in operations for over 70 years, Lac Tio now produces ore that is 60-80% hemo-ilmenite, with titanium as the main commodity mined, and iron and rare earth elements as economic byproducts.
‘Drill-ready’ opportunity
Rio, which holds several operations in Quebec, assembled the Garneau property as part of its broader exploration strategy targeting iron–titanium (Fe–Ti) mineralization within the Havre-Saint-Pierre complex. In 2022, it completed a first-pass exploration program, which defined a 4.5 km by 7.5 km magnetic anomaly within the anorthosite complex.
Subsequent fieldwork by Rio Tinto led to the identification of a large, massive ilmenite boulder, confirming the presence of Fe–Ti mineralization within the system. The top grab sample returned assays of 32.4% TiO2 (titanium oxide).
The source of the magnetic anomaly, however, has yet to be identified to this day. At the end of Rio’s work, the Garneau project remained at an early exploration stage, with no drilling completed and limited bedrock exposure across the property.
According to SAGA, the past work by Rio effectively “advanced the property from regional targeting to a defined, drill-ready opportunity,” leaving the key test of subsurface mineralization to future exploration.
The Garneau project joins the Radar property in Labrador as the second titanium–vanadium–iron asset held by SAGA. At Radar, where the company has identified an oxide layering across more than 20 km of strike, a systematic drilling program is currently underway at the Trapper zone in support of an initial resource estimate.
Infrastructure advantage
To acquire the Garneau project, SAGA will incur exploration expenditures amounting to C$434,298 that Rio Tinto was otherwise required to incur on the former’s Legacy lithium project in the James Bay district as part of a 2024 joint venture agreement, which has now been terminated.
Rio will retain 2% net smelter returns royalty on the Garneau project and reimburse SAGA about C$60,000 in costs.
Along with the project’s geologic potential, the company also highlighted its infrastructure advantages, namely the recently completed Romaine hydroelectric complex and the new Hydro-Québec access road located 4.5 km from the property.
Moreover, as a port city, Havre-Saint-Pierre functions as the coastal logistics hub for the region, supported by established rail access from Lac Tio and marine access along the North Shore, SAGA said.
The Rio Tinto mine itself remains an important part of the global titanium feedstock supply chain and continues to underpin the district’s industrial relevance, it added.
Shares of SAGA Metals advanced nearly 2% on the acquisition, taking its market capitalization to C$43.3 million ($31.3 million).
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