Boulder Gold plans to open U.S.’s only ferrochrome mine

Located in the Stillwater Complex of Montana, the Mountain View deposit hosts chromite reserves of 14.5 m illion tonnes. The potential chromite resource on Boulder’s holdings in the Stillwater Complex could exceed 100 million tonnes, the company says.

Boulder envisages processing 630,000 tonnes of ore per year grading 22% chromium oxide per tonne to yield 250,000 tonnes of chromite concentrate assaying 44%. This concentrate would produce 120,000 tonnes of ferrochrome containing 144 million lb of chromium metal.

The project would become the first fully integrated ferrochrome producer in the U.S. The metal is used widely in the steel industry. Boulder says an acceptable return on investment can be made at a price of 50 cents US per lb of contained chromium. Current prices range between 84 cents -86 cents per lb.

Mountain View, which is 400 m south of the operating Stillwater platinum mine, last operated during the Second World War, providing chromite for military purposes.

Adjacent to rail and power lines, the Mountain View facility would use an energy efficient Krupp- CODIR reduction plant in the production of ferrochrome. Western Mining Corp, one of Australia’s largest mining companies, held an option to acquire a 50% interest in the Stillwater project from Boulder. Western terminated its option April 19. As a result, Boulder is seeking other potential partners. Several large North American firms have expressed an interest in the project, the company says.

The company is also participating in a ferrochrome project in Swaziland, Africa. An international consortium, in which Boulder has a 10% interest, is planning to build a 120,000-tonne-per-year ferrochrome plant.

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