Robex plans start-up of barite project

Start-up by late 1989 of an open- pit barite mining operation near Upton in Quebec’s Eastern Townships, has been announced by Robex Resources (ME).

The company reports it is acting on the results of a final feasibility study confirming the project’s profitability. Robex says it spent less than $2 million on exploration.

Robex says it is negotiating an $11.4 million financing package to bring the project, which is expected to create 18 permanent jobs, into production.

Proven reserves (after dilution) are estimated to be 959,530 tons grading 46.5% BaSO4 and 1.94% zinc. Based on an annual production rate of 25,700 tons, the deposit is expected to produce for 15 years. Additional probable and possible reserves of 350,000 tons are indicated.

The estimated production cost is $41.10 per ton before taxes. The company says market prices vary between $231 and $345 per ton, depending on the quality of ore.

Main use of barite in Canada is in drill muds for the petroleum industry, accounting for 90% of annual consumption. Robex says about half of this current market is met through imports. The company estimates its production will represent almost 17% of Canadian requirements in 1995, projected to be 153,000 tons based on a 5% annual growth rate. Barite also has application in the manufacture of industrial products such as rubber, glass, explosives, ink and paint.