Suppliers News (December 18, 2006)

SRK to find out age, cost of Aquarius

Consulting firm SRK will produce the bankable feasibility study at St Andrew Goldfields’ (SAS-T, SASXF-O) Aquarius gold project near Timmins, Ont.

SRK will be responsible for the technical elements — things like reserve estimates, mine design, mine plan and financial models — of the study, and any other contractors working on the study will report to SRK.

One such contractor, U.K.-based GBM Minerals Engineering Consultants, will handle processing and infrastructure, and other contractors will be appointed to address geotechnical, hydrogeological and environmental and permitting aspects of the project.

In other news, Mike Kolin, the principal mine engineer with Colorado-based Gustavson Associates, was appointed St Andrew’s project manager and will be the point man and liaison between SRK and the other contractors.

St Andrew acquired the Aquarius deposit, with its existing plant infrastructure and equipment, from Kinross Gold (K-T, KGC-N) in exchange for shares and warrants that resulted in an almost 12% stake in St Andrew.

The Aquarius deposit consists of nine mining leases covering 53 sq. km. The company plans to integrate an open-pit mine and 7,500-tonne-per-day mill at Aquarius with its Stock Twp. gold mill, about 15 km away, and two smaller-tonnage underground deposits, Clavos and Taylor, which would feed the Stock mill.

Aquarius is positioned along a large regional esker that acts as a major groundwater aquifer, and groundwater inflows, particularly in the glacial tills, sands and gravels that overlie the deposit pose a major obstacle to development.

The NI 43-101-compliant indicated resource at Aquarius measures 23.1 million tonnes grading 1.49 grams gold per tonne for 1.106 contained ounces at a gold price of US$500 per oz. The inferred resource is 502,000 tonnes at 0.83 gram gold or 14,000 oz.

Now-defunct Echo Bay Mines drilled Aquarius in 1995 in an effort to boost the size of the deposit. Kinross later acquired Aquarius in February 2003 through a merger with Echo Bay Mines and TVX Gold.

Formed in 1974, SRK Consulting now employs about 600 staff internationally in 31 offices on 6 continents.

New Gold goes with Cementation for underground work

New Gold (NGD-T, NGD-X) hassettled on North Bay, Ont.-based Cementation Canada as its underground mining contractor at the New Afton copper-gold project, near Kamloops, B.C.

Underground mining at New Afton has been divided into two phases. In the first phase, which has already started, Cementation is working with New Gold’s project team to finish the feasibility study by the end of the year.

The study will likely be available to the public sometime in March 2007.

The second stage will see Cementation provide the management and employees needed to finish development and reach production.

New Gold president and CEO Chris Bradbrook says underground development is the most time-sensitive part of construction and that his company needed to speed it up.

Bradbrook says the fact that Cementation could start work immediately helped the company win the contract. New Gold says a number of mining contractors competed in the bidding process.

In other news, a draft mine permit application was recently submitted to the B.C government and is being reviewed. If accepted, it will then be subject to a 60-day review.

Cementation Canada specializes in underground mine development, construction and operation, and is currently completing major projects throughout North America.

Cementation’s clients include Diavik Diamond Mines, Goldcorp (G-T, GG-N), CVRD-Inco, and Xstrata Copper.

Dorr-Oliver Eimco cells headed for Mexico

Montreal-based Groupe Laperriere & Verreault (GLV.A-T) says its processing subsidiary Dorr-Oliver Eimco was awarded a contract worth almost $15 million for a gold and silver project in Mexico.

Later this month, Dorr-Oliver Eimco will supply a major metallurgical flotation system consisting of 53 flotation cells of all shapes and sizes.

The order includes 22 WEMCO 257-cubic-metre flotation cells, which are among the largest such machines being made.

“It attests to GL&V’s position as a world-class provider of high- performance metals and minerals processing solutions, a booming sector in several regions of the world,” says Richard Verreault, president and COO of GL&V.

Founded in 1975, Dorr-Oliver Eimco offers a number of liquid/ solid separation techniques for metal and minerals processing.

MTI’s Lipic entrepreneur of the year

The 20th annual Northern Ontario Business Awards has given its Entrepreneur of the Year Award to Robert Lipic, president and CEO of Mining Technologies International.

From its Mobile, Consumable and Cylinders divisions, MTI offers a variety of mobile, drilling and hydraulic equipment.

Lipic started his career with Falconbridge’s Strathcona base metals mine after going to school at the Haileybury School of Mines, where he now serves on the board.

Smith International poached him to test its new mineral exploration drilling system and inside of two years Lipic was managing the business in eastern Canada. In the mid- 1980s, Smith International decided to exit mining by selling its Drillco division. Lipic bought the Canadian and Australian operations.

Drillco spent quite a bit of time with Inco (N-T) researching and developing new equipment and components under the mining house’s subsidiary, Continuous Mining Systems. When Inco decided to sell that subsidiary, Lipic bought it along with two other businesses in the U.S.

The company was later known as Drillex International, and as Drillex grew into one of Canada’s largest manufacturers and suppliers of mining equipment, its name was changed to Mining Technologies International.

Alcan buys rest of cathode maker

Alcan (AL-T, AL-N) has bought the outstanding 70% stake in cathode maker Carbone Savoie, and certain related technology and equipment, from GrafTech International (GTI-N) for about US$135 million.

Alcan already owned 30% of the Carbone Savoie.

“Alcan has strengthened its commitment to aluminum smelting technology development in Europe and more particularly in France. We look forward now to begin fully integrating Carbone Savoie into the company,” says Michel Jacques, president and CEO, Alcan Primary Metal Group.

Alcan’s proprietary AP Series smelting technology uses Carbone Savoie’s advanced graphitized cathode blocks, which act as conductors in the electrolysis process.

Carbone Savoie had revenue of about US$114 million in 2005, and produces graphitized cathode blocks, as well as sidewall blocks and ramming paste. The business employs about 500 people at two sites, both near Alcan’s research and development centre in Voreppe, France.

Alcan is represented by 65,000 employees in 61 countries and regions, and posted revenues of US$20.3 billion in 2005.