Nuspar expectations high for even junior company

Junior mining companies sometimes have high expectations and Vancouver-based Nuspar Resources is certainly no exception. The company says it has signed an agreement with “a major international gold buyer” under which Nuspar will supply 250,000 oz gold over a period of up to five years. Apparently the buyer has agreed to advance Nuspar $300,000(U.S.) which will be added to its treasury for exploration work on its various properties.

Declining to reveal the buyer’s name, President L. E. Sawyer told The Northern Miner that the purchaser requested anonymity and for that matter didn’t want its name revealed to the Vancouver Stock Exchange. He said some of the funds will be used for test work on the company’s Mount Vernon property on Vancouver Island which he claims has open pit potential and could eventually produce at 5,000 tons per day.

Judging from press releases issued during the past year a number of different elements have been identified in sample material from the property. These include: aluminum, titanium, gold, vanadium, germanium, niobium, praseo dynium, lutenium, scandium, iridium, nickel, rhenium, rubidium, silver, strontium, thorium, tin, zirconium, cerium, erbium and yttrium.

Last June the company stated in a news release that the “selective separation and concentration of these minerals is feasible with the use of Dr W. J. Michalik’s new technology for mineral processing, the cost of which is competitive with any known method of extraction.”

Michalik, who apparently consults for Nuspar and was trained in Poland, has developed what Sawyer describes as a “multi-stage high tension separator” which can service units handling up to 150 tons per hour of raw pulverized ore.” Not exclusively designed for the elements just mentioned, Sawyer has also said the process could be used for coal de-ashing at its Chute Creek coal property “to produce 98% pure micronized coal.”

Discussing the potential for precious metals on the Mount Vernon property, Sawyer said the company had gold, silver and platinum reserves but he could not give any actual figures on grade or tonnage. He also said the company expects to finalize a $3-million joint venture agreement very soon and the funds will be used for methane gas exploration on Nuspar’s Chute Creek coal property near Campbell River and for exploration at Mount Vernon. Sawyer declined to release details of the financing including the party involved.