Trans America options iodine property

The recent acquisition of a high-grade iodine project has expanded the assets of Trans America Industries (VSE) in South America.

Through 37%-owned subsidiary, Boron Chemicals International (VSE), the junior is already active on several boron mineral properties in northern Chile and Bolivia. Industrial borate minerals are being produced on a small scale and Trans America is investigating the possibility of building a US$6-million boron plant in Bolivia for specialty products. The venture has been partially funded through a private placement by Teck (TSE). Trans America can acquire a 74.9% interest in the Aguas Blancas iodine project, 95 km southeast of Antofagasta, Chile. The remainder will be held by the company’s management group.

The property was previously held by an American major, which spent US$4.5 million on title settlement, drilling, bulk-sampling, metallurgical testing and some feasibility work.

This work reportedly has outlined 25,000 tonnes of recoverable iodine, 1.8 million tonnes of sodium nitrate and 12 million tonnes of sodium sulphate. Over the next year, Trans America will pursue a bankable feasibility for a multi-product operation. One model being considered involves annual production of one million kg of iodine, 100,000 tonnes of sodium sulphate and 40,000 tonnes of sodium nitrate. This would require a capital cost of US$44.2 million, an iodine price of US$12.50 per kg, US$200 per tonne for nitrate, US$100 per tonne for sulphate, and a 12.5% discount.

The property can be reached by road, and a railway is seven kilometres away. A water source has been identified, although a mining operation would require diesel generators for power.