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Resource Clips


Posts tagged ‘manganese’

Indonesia ban rocks nickel market

January 13th, 2014

by Frik Els | January 12, 2014 | Reprinted by permission of MINING.com

Indonesia rocked the mining world on January 12, putting into effect an outright ban on nickel, bauxite and tin ore exports.

The Asian nation is the world’s premier thermal coal and tin exporter and is also a gold and copper powerhouse, but the ban on nickel and bauxite ore would have the most dramatic effect on markets.

Last week Indonesian energy and resource ministry officials scrambled to ease provisions of the raw mineral export prohibition that President Susilo Bambang Yudhoyono signed into law on January 12, the most controversial decision of his 10-year presidency.

Indonesia dominates the nickel export business, accounting for over a fifth of global supply at an estimated 400,000 tonnes of contained metal. Chinese nickel pig iron producers imported more than 30 million tonnes of nickel ore from Indonesia last year and China’s aluminium smelters rely on Indonesia for 20% of their feedstock.

According to the latest rules under the ban, base metals including copper, manganese, lead, zinc and tin will be allowed to be exported in concentrate until 2017.

This benefits producers like Freeport-McMoRan Copper & Gold NYE:FCX, which operates the world’s third-largest copper mine at Grasberg in the West Papua province and warned about a 60% drop in output should copper form part of the ban. Phoenix-based Freeport-McMoRan and Newmont Mining NYE:NEM together account for 97% of Indonesia’s copper exports.

[The ban] is the biggest supply risk facing base metals in a long time. The market has been very complacent, thinking the Indonesians would backtrack.

However against expectations of a last-minute climbdown by authorities, the nickel and bauxite ore ban, as well as the prohibition of unprocessed exports of tin, chromium, gold and silver, went into effect January 12.

FT.com quoted Gayle Berry, base metals analyst at UK bank Barclays earlier as saying the ban “is the biggest supply risk facing base metals in a long time. The market has been very complacent, thinking the Indonesians would backtrack.”

Privately owned Ibris Nickel last week announced it will cease operations in Indonesia, laying off 1,400 workers at its two-million-tonne-per-year mine. The nickel industry employs some 200,000 Indonesians across hundreds of small-scale operations.

Reuters reports the Indonesian Mineral Entrepreneurs Association said it planned to challenge the ban in the Supreme Court and Constitutional Court while almost 30,000 mine workers have been laid off, sparking protest in the capital Jakarta:

“We call on all mining workers to prepare to go on the streets and swarm the presidential palace if the government goes ahead with the implementation of the ban,” said Juan Forti Silalahi of the National Mine Workers Union in a statement on January 11.

So far the price of nickel has not reacted in a big way to the looming ban, but now all bets are off.

 

 

Three-months nickel on the LME retreated more than 20% in 2013 from opening levels of $17,450 and, after hitting a high of $18,700 in February, dropped to a four-year low in October amid an oversupplied market.

After a brief uptick in December to over $14,200, the steelmaking raw material last week fell back to the mid-$13,000s and on January 10 the contract closed at $13,725.

Even without the Indonesian ban, the prospects for nickel aren’t rosy.

Global output is forecast to rise for the first time to over two million tonnes in 2015. That’s up from 1.4 million tonnes in 2007.

Stockpiling of ore and metal in anticipation of Indonesian disruptions and the inexorable rise of nickel warehouse levels over the past two years—hitting a record 260,000 tonnes last week—have also kept prices subdued.

 

 

Indonesia, with a population of 240 million, goes to the polls for parliamentary elections in April and in July will choose a new president, so much can change over the course of the year before the true extent of the ban can be felt.

Reprinted by permission of MINING.com

Wildcat Silver reports AZ Results of 104.4 g/t Silver, 0.53% Manganese over 30.5m

May 10th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningWildcat Silver Corp TSX:WS announced results from its Hermosa Property in Santa Cruz County, Arizona. Highlights include

104.4 g/t silver, 0.53% manganese, 0.04% zinc, 0.01% copper and 0.4% lead over 30.5 metres
148.9 g/t silver, 11.32% manganese, 2.82% zinc, 0.23% copper and 3.02% lead over 16.8 metres
49.2 g/t silver, 0.22% manganese, 0.02% zinc, 0.01% copper and 0.09% lead over 39.6 metres
100.3 g/t silver, 5.8% manganese, 0.54% zinc, 0.07% copper and 0.98% lead over 16.8 metres
47.4 g/t silver, 0.65% manganese, 0.01% zinc, 0.01% copper and 0.09% lead over 32 metres
55.3 g/t silver, 0.07% manganese, 0.02% zinc, 0.01% copper and 0.08% lead over 27.4 metres

The Hermosa Property is 100% owned by Arizona Minerals Inc, which is 80% owned by Wildcat Silver. The project has a March 2012 indicated resource estimate of 101.42 million tonnes grading 53.18 g/t silver, 3.55% manganese, 0.91% zinc and 0.04% copper and 0.55% lead. The inferred estimate comes to 83.61 million tonnes grading 36.42 g/t silver, 2.38% manganese, 0.83% zinc, 0.03% copper and 0.56% lead. A resource update is scheduled for 3Q.

View Company Profile

Contact:
Letitia Cornacchia
VP of Investor Relations and Corporate Communications
416.860.6310

by Greg Klein

American Manganese advances AZ Artillery Peak Project Metallurgy

February 17th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningAmerican Manganese Inc TSXV:AMY announced an independent report by cleantech analysis firm Kachan & Co validating the hydrometallurgical process to be used at its Artillery Peak project in Arizona. The process uses commercially available equipment and maintains a low-cost, low-energy output while retaining a recovery rate of 92-93%% electrolytic-manganese metal at a purity of over 99.7%. Kachan’s Managing Partner Dallas Kachan said, “On paper and in pilot, American Manganese’s hydrometallurgical process is promising. The near closed-loop nature of the process appears to result in high-grade electrolytic manganese metal with little environmental impact and at a low cost. Proving the process at scale in the field will be the company’s biggest challenge, but early indications are encouraging.”

American Manganese President/CEO Larry Reaugh commented, “Kachan was commissioned to do an independent assessment of our hydrometallurgical process. Its findings illustrate how American Manganese has developed one of the most efficient models of mining low-grade manganese ore and producing low-cost, high-grade electrolytic manganese metal. To have a net positive report published by a leading cleantech analysis firm supporting our unique hydrometallurgical process is a huge success for American Manganese. We are encouraged to continue to work towards becoming the lowest cost producer of electrolytic manganese metal in the world.”

View Company Profile

Contact:
American Manganese Inc
604.531.9639

or Kachan & Co
Ryan Tessier
Press Contact
604.613.6143

by Ted Niles

Wildcat reports Arizona Silver Resource of 171.28M oz Indicated, 98.6M oz Inferred

February 6th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningWildcat Silver Corp TSX:WS announced an updated resource estimate for its Hermosa Project in Santa Cruz, Arizona. The indicated category shows 101,416 tonnes grading 53.18 g/t silver, 3.55% manganese, 0.91% zinc, 0.04% copper and 0.55% lead for 171.28 million ounces silver. The inferred category shows 83,612 tonnes grading 36.42 g/t silver, 2.38% manganese, 0.83% zinc, 0.03% copper and 0.56% lead for 98.6 million ounces silver.

The property is 100% owned by Arizona Minerals Inc, which is 80% owned by Wildcat Silver.

View Company Profile

Contact:
Letitia Cornacchia
VP of Investor Relations and Corporate Communications
416.860.6310

by Greg Klein

Wildcat reports Arizona Assays of 8.46% Manganese, 395.2 g/t Silver over 9.1m

December 22nd, 2011

Resource Clips - essential news on junior gold mining and junior silver miningWildcat Silver Corporation TSX:WS announced results from its Hermosa property in Santa Cruz County, Arizona. Assays include

69.5 g/t silver and 10.23% manganese over 7.9 metres
160.4 g/t silver and 12.45% manganese over 35.1 metres
65.8 g/t silver and 14.46% manganese over 4.6 metres
13.41% manganese over 8.5 metres
46.6 g/t silver over 42.7 metres
77.2 g/t silver and 10.55% manganese over 24.4 metres
98.4 g/t silver and 11.94% manganese over 24.8 metres
68.7 g/t silver and 21.25% manganese over 18.6 metres
395.2 g/t silver and 8.46% manganese over 9.1 metres
310 g/t silver and 10.81% manganese over 10.7 metres

The Hermosa project has an NI 43-101 indicated mineral resource estimate of 36 million ounces silver and 410,000 tonnes manganese. It has inferred resources of 85 million ounces silver and 3.4 million tonnes manganese. Wildcat expects to issue an updated resource estimate and preliminary economic assessment for the project in early 2012.

View Company Profile

Contact:
Letitia Cornacchia
VP Corporate Communications
416.860.6310

by Ted Niles

Wildcat reports Arizona Assays up to 483.2 g/t Silver over 22.9m

September 27th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningWildcat Silver Corporation TSX:WS announced drill results from its Hermosa property in Santa Cruz County, Arizona. Highlights include

89.3 g/t silver over 16.8 metres
31.5 g/t silver and 9.27% manganese over 12.3 metres
46.5 g/t silver over 33.5 metres
246.6 g/t silver over 47.3 metres
433.6 g/t silver over 19.8 metres
75.2 g/t silver over 12.2 metres
79 g/t silver and 17.76% manganese over 25.9 metres
483.2 g/t silver and 15.5% manganese over 22.9 metres

The Hermosa property currently has an NI 43-101 resource estimate of 36 million ounces silver and 410,000 tonnes manganese indicated, and 85 million ounces silver and 3.4 million tonnes manganese inferred. Wildcat continues to drill the property with five rigs.

View Company Profile

Contact:
Letitia Cornacchia
VP Corporate Communications
416.860.6310

by Ted Niles

Buchans reports NB Assays of 11.27% Manganese, 16.01% Iron over 101m

September 26th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningBuchans Minerals Corporation TSXV:BMC announced drill results from the Plymouth manganese deposit of its Woodstock project in New Brunswick. Assays include

8.61% manganese and 12.59% iron over 44 metres
12.51% manganese and 16.34% iron over 78 metres
11.27% manganese and 16.01% iron over 101 metres
11.67% manganese and 16.57% iron over 78 metres

President/CEO Warren MacLeod commented, “Given the guidance of our dynamic economic model, we are excited to begin the metallurgical tests. If we are successful in leaching the manganese and attaining good recoveries, then the next phase of the Woodstock project will be to work towards a preliminary economic assessment and determine if the project has the ability to compete directly with Chinese producers of electrolytic manganese metal or other high purity manganese products.”

View Company Profile

Read More about Buchans Minerals

Contact:
Warren MacLeod
President/CEO
902.472.3520

by Ted Niles

American Manganese President Larry Reaugh on updated Artillery Peak resource

September 12th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningAmerican Manganese Inc TSXV:AMY announced an updated 43-101 resource for its Artillery Peak Manganese Project in Mohave County, Arizona. The report estimates 226.46 million tonnes grading 2.99% for 14.92 billion pounds manganese indicated and 56.42 million tonnes grading 2.84% for 3.54 billion pounds manganese inferred.

President/CEO Larry Reaugh tells ResourceClips.com, “We’re certainly happy. Most of the drilling was infill drilling, and it’s moved up the indicated resource, a much more confident resource, by 123%. We did a little drilling outside the boundaries, and overall the entire resource went up just under 20%. We now have almost 15 billion pounds of manganese indicated, where we had less than half of that amount of indicated previously. And of course we’ve only touched 20% to 25% of the property, so we expect further drilling will bring more increases.

We now have almost 15 billion pounds of manganese indicated, where we had less than half of that amount of indicated previously. And of course we’ve only touched 20% to 25% of the property—Larry Reaugh

“We’re not drilling at the moment,” he points out. “We may go back this fall. It all depends on the market, but we are completing our pilot plant testing. That got underway around August 18, and I expect that’ll be complete sometime this weekend. Everything we’re seeing there is looking really good. So we’re not expecting any surprises.

“Wardrop [Engineering] is working on prefeasibility. They’ll take the results from the pilot plant; they’ll model a pit from the latest resource study; and they’ll deliver a report hopefully at the end of October or early November.

“We hope to be in production by mid-2014. So far there’s nothing to say that we can’t, but it all depends on permitting and a few other things. Market conditions are always a factor, and permitting is a major factor. But Arizona is the largest mining state in the US, and our project, compared to some of the big copper, copper-moly projects that have gone ahead recently in Arizona, is miniscule in size.”

Reaugh adds, “China controls about 98% of manganese production. They are shutting down some production for environmental and efficiency reasons, plus they’re starting to police the border between China and Vietnam to hopefully stop the smuggling to the European market. All that will decrease the amount of supply, and I expect demand will increase as rapidly as it has in the past, so I can foresee shortages that would lead to higher prices.

“It’s not a luxury item; it’s a necessity. You can’t make steel without manganese. If you want to get into specialty stainless steels, you need the metal. Certainly the aluminium industry is about a third of the entire demand, so it’s a necessity. There’s no substitute for it.

“Our big advantage, according to our PEA, is that we could be the lowest-cost producer in the world,” he explains. “Right now we’re certainly looking at well under half what it costs to produce in China, and it’s all to do with the process. That’s what the pilot plant is all about. That’s looking excellent, so I’m very happy.

“Continuous operation at the pilot plant has been excellent. It’s performed 100%. But we won’t have the report about metallurgical recoveries, what’s in the tailings, what we might be losing in the system or water efficiencies for at least another month.

“I think the pilot plant is probably the turning point in the company’s progression,” Reaugh emphasizes. “We’ve had a process that we worked in batches, and it has performed. But on a continuous basis, that’s a different story. Now we’ve been running material for several days on a continuous basis, and the results, like liquid-solid separation and all those things, are performing as we want them to. I think we’re going to remove the big hurdle which a lot of companies, some of our competitors and other mining companies, would look at as a potential risk. We’re going to eliminate that within a month.”

View Company Profile

Contact:
American Manganese Inc
604.531.9639

Disclaimer: American Manganese Inc is a Resource Clips advertiser.

by Greg Klein

American Manganese reports AZ 43-101: 14.92 Billion lbs ind, 3.54 Billion lbs inf

September 9th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningAmerican Manganese Inc TSXV:AMY announced an updated 43-101 resource for its Artillery Peak Manganese Project in Mohave County, Arizona. The report estimates 226.46 million tonnes grading 2.99% for 14.92 billion pounds manganese indicated and 56.42 million tonnes grading 2.84% for 3.54 billion pounds manganese inferred.

President/CEO Larry Reaugh tells ResourceClips.com, “We’re certainly happy. Most of the drilling was infill drilling, and it’s moved up the indicated resource, a much more confident resource, by 123%. We did a little drilling outside the boundaries, and overall the entire resource went up just under 20%. We now have almost 15 billion pounds of manganese indicated, where we had less than half of that amount of indicated previously. And of course we’ve only touched 20% to 25% of the property, so we expect further drilling will bring more increases.

We now have almost 15 billion pounds of manganese indicated, where we had less than half of that amount of indicated previously. And of course we’ve only touched 20% to 25% of the property—Larry Reaugh

“We’re not drilling at the moment,” he points out. “We may go back this fall. It all depends on the market, but we are completing our pilot plant testing. That got underway around August 18, and I expect that’ll be complete sometime this weekend. Everything we’re seeing there is looking really good. So we’re not expecting any surprises.

“Wardrop [Engineering] is working on prefeasibility. They’ll take the results from the pilot plant; they’ll model a pit from the latest resource study; and they’ll deliver a report hopefully at the end of October or early November.

“We hope to be in production by mid-2014. So far there’s nothing to say that we can’t, but it all depends on permitting and a few other things. Market conditions are always a factor, and permitting is a major factor. But Arizona is the largest mining state in the US, and our project, compared to some of the big copper, copper-moly projects that have gone ahead recently in Arizona, is miniscule in size.”

Reaugh adds, “China controls about 98% of manganese production. They are shutting down some production for environmental and efficiency reasons, plus they’re starting to police the border between China and Vietnam to hopefully stop the smuggling to the European market. All that will decrease the amount of supply, and I expect demand will increase as rapidly as it has in the past, so I can foresee shortages that would lead to higher prices.

“It’s not a luxury item; it’s a necessity. You can’t make steel without manganese. If you want to get into specialty stainless steels, you need the metal. Certainly the aluminium industry is about a third of the entire demand, so it’s a necessity. There’s no substitute for it.

“Our big advantage, according to our PEA, is that we could be the lowest-cost producer in the world,” he explains. “Right now we’re certainly looking at well under half what it costs to produce in China, and it’s all to do with the process. That’s what the pilot plant is all about. That’s looking excellent, so I’m very happy.

“Continuous operation at the pilot plant has been excellent. It’s performed 100%. But we won’t have the report about metallurgical recoveries, what’s in the tailings, what we might be losing in the system or water efficiencies for at least another month.

“I think the pilot plant is probably the turning point in the company’s progression,” Reaugh emphasizes. “We’ve had a process that we worked in batches, and it has performed. But on a continuous basis, that’s a different story. Now we’ve been running material for several days on a continuous basis, and the results, like liquid-solid separation and all those things, are performing as we want them to. I think we’re going to remove the big hurdle which a lot of companies, some of our competitors and other mining companies, would look at as a potential risk. We’re going to eliminate that within a month.”

View Company Profile

Contact:
American Manganese Inc
604.531.9639

Disclaimer: American Manganese Inc is a Resource Clips advertiser.

by Greg Klein

Mining Rock On The Rock

September 9th, 2011

Buchans has Zinc in Nfld and Manganese in NB

By Ted Niles

It’s a familiar story—junior miner purchases historic producer and discovers significant and mineable remainder. That Newfoundland’s Buchans Mines were active from 1928 to 1984, producing in excess of 16 million tonnes of ore, gives one a better sense of what might possibly remain. Buchans Minerals President and CEO Warren MacLeod says of the Lundberg base-metals deposit, “It is literally underneath the old Lucky Strike glory hole and the old mine buildings. They built the mine site right on top of what they considered, at that time, lower-grade material, but which in today’s world is economic ore. When we went in there our philosophy was: let’s see what the old timers left behind. It didn’t take us long to find it.”

Located outside the town of Buchans, 330 kilometres northwest of St John’s, the Buchans property comprises 12,800 hectares, of which the Lundberg deposit covers 215 claims over 5,375 hectares. In November 2008 Buchans released an NI 43-101 resource estimate for Lundberg of 20.7 million tonnes inferred, with a combined zinc, lead and copper grade of 2.78%.

Buchans has Zinc in Nfld and Manganese in NB

Misgivings that this was still not economic grade propelled Buchans to undertake a preliminary economic assessment. “We believed that Lundberg could be a standalone mine, and we knew the existing management at the time didn’t really know what they were sitting on,” MacLeod says. The PEA confirmed MacLeod’s hopes. Based on a 5,000 tonne-per-day open-pit and milling operation with a ten-year mine life, it projected Lundberg would have a pre-tax internal rate of return of 43.9% and a net present value (at a discount rate of 6%) of $217.8 million. Average operating costs are estimated at $23.79 per tonne with net revenues of $52.95 per tonne. Payback on capital expenditures is expected to be 1.5 years. Exclaims MacLeod, “Obviously, it’s screaming out that this could potentially become a mine!”

In addition to good infrastructure and the obvious permitting advantages of building a mine on a brownfields site, Buchans also owns deposits nearby that could potentially supplement Lundberg. Among these are Clementine West, Buchans North and Daniel’s Pond. Located about 30 kilometres west of Teck Resources’ Duck Pond mine, Daniel’s Pond has a current NI 43-101 indicated resource of 1.16 million tonnes grading 4.44% zinc, 2.12% lead, 0.31% copper, 87.79 g/t silver and 0.60 g/t gold and an inferred resource of 450,000 tonnes grading 3.88% zinc, 1.74% lead, 0.27% copper, 81.63 g/t silver and 0.52 g/t gold.

Buchans anticipates another drilling program to update Lundberg from inferred to indicated, then it will move to prefeasibility. From there to production, MacLeod says, would be five years. But before any of these steps can be taken, the company needs to find a joint-venture partner or “split the project off into its own private company, get it financed, then ultimately take it public in its own right.” MacLeod says that discussions with interested parties are ongoing and that he has a “personal goal to get some kind of deal wrapped up before Christmas.”

MacLeod notes, “Brook Hunt [& Associates] indicate that zinc will go into production shortfall from existing mines—as well as probable and possible mines—around 2015. And the Royal Bank of Canada is projecting 2014-2015 prices of around $1.30 a pound. If we have that kind of price, it would improve the economics. And if we aggressively pursue this project, it could come into production right around the time the anticipated shortfall is occurring. The timing could almost be perfect for Lundberg.”

If we aggressively pursue this project, it could come into production right around the time the anticipated zinc shortfall is occurring. The timing could almost be perfect for Lundberg —Warren MacLeod

Meanwhile, Buchans has been working its “dark horse asset,” its 5,800-hectare Woodstock manganese property in New Brunswick. An historic (non-NI 43-101 compliant) resource estimated the Plymouth deposit had 46.5 million tonnes grading 10.9% manganese and 13.3% iron, and the North and South Hartford deposits had 90 million tonnes at 8% manganese and 12% iron. MacLeod reports, “When we were researching Woodstock, we came across a joint federal- and provincial-government report about a program from the 1980s to find out whether you could leach this material. The importance of this is that if you’re applying leach technology, you’re going to be producing manganese cheaper than the Chinese, and you’re going to be producing it using a technology that’s not as tough on the environment as roasting.”

He continues, “We’re pretty confident that we will be able to leach the material from the ore. If we’re able to achieve that, it will really open the door for this project to accelerate to a purely economic assessment stage. One of the important things to note is that American Manganese’s Artillery Peak deposit is not the only game in town in North America for electrolytic manganese metal. Woodstock is pretty close on its heels. I think that the scale of this project could be significantly larger than Lundberg.”

Buchans announced September 7 results from three of the first five holes drilled at Plymouth. These include 11.43% manganese and 16.14% iron over 45 metres, 11.43% manganese and 14.9% iron over 89 metres and 9.22% manganese and 12.75% iron over 63 metres.

Buchans Minerals Corporation has 150.9 million shares trading at $0.075 for an $11.3 million market cap. It also has an early-stage gold project, the Goldquest prospect in southwest Newfoundland, which it holds in 50/50 joint venture with Benton Resources. Drilling is anticipated to begin there in September.