North Lily reports nitrate reserve

An initial nitrate reserve estimate of 27.7 million tonnes, using a cutoff grade of 4% nitrate, was reported recently by North Lily Mining (NASDAQ) for its Taltal iodine/ nitrate project in northern Chile. The 660-sq.-km property is a joint venture with KAP Resources (VSE) and Atacama Resources. Reserves are reported to be sufficient for a 7,600-tonnes-per-day operation with a 10-year lifespan. Annual production is projected at 275,000 tonnes of nitrate and 635 tonnes of iodine. The current market price for iodine is $18,000 per tonne, and $300 per tonne for nitrate. A feasibility study is scheduled for completion by April. North Lily is operator and has a 10% net profits interest in the property.