Suppliers News (May 08, 2006)

Rocmec works on Russian Kid

Rocmec Mining(RMI-V) is using a thermal fragmentation unit and an In-the-Hole (ITH) drill at the 150-ft. level of its Russian Kid gold project, some 40 km west of Rouyn-Noranda in the Abitibi region of Quebec, in an attempt to form a resource estimate.

Rocmec says it has permission from the Quebec government to extract 44,000 tonnes from the site. Structural support work continues on more than 915 metres of mineralized zones available on the 150-ft. level. The extracted ore will be stockpiled underground and transported to a treatment plant at the end of May.

A new resource estimate on Russian Kid is expected sometime in the fall.

A method of selective ore extraction, the patented thermal fragmentation process enlarges a 15-cm hole previously drilled up to 20 metres depth using an ITH-drill. The fragmenting occurs from the heat generated by a powerful burner fuelled by diesel and air. The intense heat creates thermal stresses that “spall” the rock, a form of physical degradation caused by the unequal expansion of rock crystals.

The thermal reaction allows for the enlargement of the hole to the total width of the vein by shattering the rock. The high-grade granular residue is then gathered and sent for treatment.

The technology has been used in Russia for more than 30 years in large-scale open pits for the drilling of large blastholes. Rocmec is using the technology on precious metal properties — properties like Russian Kid — that would have been uneconomic using traditional mining methods.

The Russian Kid Gold property includes a 100-metre-deep, 2-compartment shaft, and an 844-metre decline allowing access to three levels — 150, 300 and 425 ft. below surface. On these levels, 1,700 metres of drifts and crosscuts have been driven. The Russian Kid orebody is defined by diamond-drill holes and sampling, including two test stopes.

Pointe-Claire, Que.-based Rocmec hopes to ride its thermal fragmentation process to the status of mid-tier gold producer.

Minarco to study Baruun Naran coal operation

A preliminary economic valuation and concept study on the Baruun Naran coal project in southern Mongolia will be conducted by consulting firm Minarco Pacific for QGX (QGX-T).

The study will determine the minable tonnage at Baruun Naran and come up with the best design for an open pit, including a mining schedule and the equipment needed.

The study should be completed before the end of July.

QGX hired McElroy-Bryan Geological Services in December 2005 to complete a resource estimate compliant with National Instrument 43-101. That study should be completed around the same time as the preliminary economic valuation by Minarco.

“Together, these two studies will provide a rigorous assessment of the project’s potential,” says David Anderson, CEO of QGX.

QGX is negotiating with Chinese coal buyers. In fact, the company says a private Chinese company has made a verbal offer for Baruun Naran coal.

Minarco has offices in Sydney and Beijing, and the firm has participated in studies of coal mines in Australia, China, Indonesia and South Africa, among others.

BioteQ to recycle cyanide in Mexico

BioteQ Environmental Technologies (BQE-V, BTQNF-O) and Columbia Metals (COL-V, CBMLF-O) will develop a treatment plant to recover cyanide at the latter’s La Jojoba gold property in Sonora state, Mexico.

BioteQ will supply Columbia with one of its patented sulphide plants to capture free and copper-complexed cyanide from barren solutions. The cyanide will then be reused for gold extraction.

As a bonus, the technology converts copper cyanide complexes to copper sulphide, which is then recovered as a revenue source.

La Jojoba is located in northern Mexico, about 275 km south of Tuscon, Ariz. The property’s gold resource is amenable to conventional heap leaching, but the deposit contains cyanide-soluble copper minerals that stick to cyanide during gold extraction. These minerals can build up in the metallurgical process solutions and hinder efficiency.

Based on initial estimates, the BioteQ treatment plant will regenerate more than 4 million lbs. of cyanide per year — or about half the annual supply of cyanide needed for Jojoba. BioteQ says cyanide regeneration costs should tally to about US70 per lb.

The treatment plant, according to studies, could recover as much as 3.6 million lbs. copper annually at a cost of US90 per lb. With copper approaching US$3 per lb. on the London Metals Exchange, BioteQ could generate in excess of US$6 million in revenue from selling copper recovered from Jojoba.

BioteQ and Columbia will co-develop the cyanide capturing process. This will be followed by the erection of a treatment plant owned by BioteQ in exchange for any metals recovered, as well as fees for regenerating cyanide.

Columbia is including the cyanide regeneration plant in its cost projections for Jojoba. Columbia Metals has other gold projects in Mexico, including the Lluvia de Oro, North Sonora, and El Carmen properties.

Vancouver-based BioteQ treats contaminated water through its patented BioSulphide process and other sulphide-based technologies.

Boart hives off division

Salt Lake City, Utah-based Boart Longyear has sold its Hard Materials & Soft Rock Tools division (HMSR) to Equita Management, a private company based in Bad Homburg, Germany.

HMSR, a Boart Longyear operating division for the previous 24 years, produces, markets and distributes components for mining and industrial applications. Its principal mining products are inserts used with rotary percussive drill bits, and soft-rock cutting tools for coal and other soft minerals.

Terms of the sale were not disclosed.

“While HMSR has been a wonderful business for our company, it is not core to our drilling focus and the move to new ownership is a positive step for its future and that of its employees,” says Paul Brunner, Boart Longyear CEO, adding that the company will continue to focus on its drilling products and services.

HMSR has 790 employees at manufacturing facilities in Germany, South Africa and China.

Boart was purchased in July 2005 by Advent International, along with Bain Capital, from Anglo American (AAUK-Q).

Boart Longyear supplies products and services to the mineral extraction and construction markets.