Monday, 11 Jul 2011
ECR Minerals Plc announced that the company has secured an exclusive option to acquire an ownership interest of up to 80% in the Unchimé iron ore project in Salta Province in Argentina. The acquisition is subject to due diligence.
The exploration done thus far indicates that the Unchimé Resource Estimate of 400 million tonnes is conservative but remains to be properly defined.
The Unchimé project is located 35 kilometers from the city of General Güemes and 80 kilometers from the city of Salta, which has a population of approximately 500,000. The project comprises approximately 11,000 hectares of granted mining and exploration concessions plus applications for additional tenements.
The Unchimé deposit is a Clinton style oolitic haematite iron ore deposit discovered in the 1940s. The deposit was exploited on a small scale during the 1950s and 1960s. The project area is characterized by a series of discrete hilltop ore bodies overlain by varying thicknesses of overburden and separated by deep valleys. The iron bearing formation occurs as near horizontal layers within the hills. The project area is wooded and the agricultural value of the land is low. Salta Province is located on the tropic of Capricorn, and climatically receives both tropical and temperate influences.
There is a Chinese controlled project currently underway 60km to the north of Unchimé to develop an iron ore mine on the same iron bearing geological formations.
Unchimé has historic indicated resources of 23.5 million tonnes and historic inferred resources of 372.8 million tonnes estimated across numerous zones reportedly grading 35% to 45% Fe. These historic estimates are based largely on trench sampling data and are not compliant with JORC, NI43-101 or equivalent standards.
Metallurgical test work carried out in the same period indicated that an iron ore product containing more than 52% Fe was obtainable from Unchimé ore by dense media concentration. The Unchimé ore is metallurgically complex and will require detailed test work to define an optimum process route and identify the saleable product most likely to be profitable.
ECR technical personnel consider that the overall resource potential of the Unchimé project may be significantly larger than indicated by historic resource estimates.
Access to Unchimé is via paved highway from Salta and unpaved local roads to the entrance of the project area. There are numerous disused internal roads and tracks requiring rehabilitation.
A railway line of the Belgrano Carga railway network, which is in the process of being upgraded by the Argentine government, passes within 3 kilometers of the Unchimé project area and a natural gas pipeline passes within 5 kilometers. There are 2 substantial power plants with associated electrical distribution networks within 20 kilometers. Water is available in quantity from local rivers.
The availability of local natural gas is positive with respect to the energy requirements of any eventual mining operation. ECR will also assess the possibility of producing pig iron in Salta as an alternative to the sale of concentrate or direct shipping iron ore. Pig iron production would be more energy and capital intensive but may deliver superior economics by producing a high purity iron product highly marketable for steelmaking.
Argentina presently produces over 6 million tonnes of steel per annum, importing all raw material requirements. Imported iron ore reaches the Argentine port of Rosario from Brazil after transport by rail and river barge and transhipment through Paraguay.
Indicative rail transport costs from the Unchimé project to Rosario 1,100 kilometers southeast of Unchimé are estimated to be in the order of USD 20 to USD 30 per tonne. The port of Rosario (Argentina’s largest) can receive large bulk carriers and has direct loading facilities.
Mr Patrick Harford MD of ECR Minerals plc said that "We are very excited by the possibility that with further work, the Unchimé project may have the potential to become a major iron ore mine, perhaps by way of a staged development process. It may be feasible to develop a relatively small initial operation to supply the local market, with a larger export operation being developed at a later stage."
He added that "Oolitic iron ore deposits such as Unchimé represent considerable metallurgical challenges. However the development of such deposits has been shown to be technically and commercially feasible elsewhere and the development of the Zapla project to the north of Unchimé by Chinese investors gives us considerable encouragement. Should the results of the planned drilling program and ongoing metallurgical test work prove encouraging the Company intends to move rapidly to complete the acquisition of Unchimé and to further define the extent of iron mineralisation at the project whilst commencing the feasibility studies necessary to define its commercial merit."
Mr Harford said that "ECR has been able to agree favorable terms for the acquisition of Unchimé with the local vendors, who will become ECR's partners in the project and who have prior experience of successful bulk mineral production in Argentina. This partnership will add a valuable extra dimension to the venture, and discussions with the provincial government in Salta have indicated that development of Unchimé would enjoy strong local support." (By ECR Minerals)
ECR Minerals Plc announced that the company has secured an exclusive option to acquire an ownership interest of up to 80% in the Unchimé iron ore project in Salta Province in Argentina. The acquisition is subject to due diligence.
The exploration done thus far indicates that the Unchimé Resource Estimate of 400 million tonnes is conservative but remains to be properly defined.
The Unchimé project is located 35 kilometers from the city of General Güemes and 80 kilometers from the city of Salta, which has a population of approximately 500,000. The project comprises approximately 11,000 hectares of granted mining and exploration concessions plus applications for additional tenements.
The Unchimé deposit is a Clinton style oolitic haematite iron ore deposit discovered in the 1940s. The deposit was exploited on a small scale during the 1950s and 1960s. The project area is characterized by a series of discrete hilltop ore bodies overlain by varying thicknesses of overburden and separated by deep valleys. The iron bearing formation occurs as near horizontal layers within the hills. The project area is wooded and the agricultural value of the land is low. Salta Province is located on the tropic of Capricorn, and climatically receives both tropical and temperate influences.
There is a Chinese controlled project currently underway 60km to the north of Unchimé to develop an iron ore mine on the same iron bearing geological formations.
Unchimé has historic indicated resources of 23.5 million tonnes and historic inferred resources of 372.8 million tonnes estimated across numerous zones reportedly grading 35% to 45% Fe. These historic estimates are based largely on trench sampling data and are not compliant with JORC, NI43-101 or equivalent standards.
Metallurgical test work carried out in the same period indicated that an iron ore product containing more than 52% Fe was obtainable from Unchimé ore by dense media concentration. The Unchimé ore is metallurgically complex and will require detailed test work to define an optimum process route and identify the saleable product most likely to be profitable.
ECR technical personnel consider that the overall resource potential of the Unchimé project may be significantly larger than indicated by historic resource estimates.
Access to Unchimé is via paved highway from Salta and unpaved local roads to the entrance of the project area. There are numerous disused internal roads and tracks requiring rehabilitation.
A railway line of the Belgrano Carga railway network, which is in the process of being upgraded by the Argentine government, passes within 3 kilometers of the Unchimé project area and a natural gas pipeline passes within 5 kilometers. There are 2 substantial power plants with associated electrical distribution networks within 20 kilometers. Water is available in quantity from local rivers.
The availability of local natural gas is positive with respect to the energy requirements of any eventual mining operation. ECR will also assess the possibility of producing pig iron in Salta as an alternative to the sale of concentrate or direct shipping iron ore. Pig iron production would be more energy and capital intensive but may deliver superior economics by producing a high purity iron product highly marketable for steelmaking.
Argentina presently produces over 6 million tonnes of steel per annum, importing all raw material requirements. Imported iron ore reaches the Argentine port of Rosario from Brazil after transport by rail and river barge and transhipment through Paraguay.
Indicative rail transport costs from the Unchimé project to Rosario 1,100 kilometers southeast of Unchimé are estimated to be in the order of USD 20 to USD 30 per tonne. The port of Rosario (Argentina’s largest) can receive large bulk carriers and has direct loading facilities.
Mr Patrick Harford MD of ECR Minerals plc said that "We are very excited by the possibility that with further work, the Unchimé project may have the potential to become a major iron ore mine, perhaps by way of a staged development process. It may be feasible to develop a relatively small initial operation to supply the local market, with a larger export operation being developed at a later stage."
He added that "Oolitic iron ore deposits such as Unchimé represent considerable metallurgical challenges. However the development of such deposits has been shown to be technically and commercially feasible elsewhere and the development of the Zapla project to the north of Unchimé by Chinese investors gives us considerable encouragement. Should the results of the planned drilling program and ongoing metallurgical test work prove encouraging the Company intends to move rapidly to complete the acquisition of Unchimé and to further define the extent of iron mineralisation at the project whilst commencing the feasibility studies necessary to define its commercial merit."
Mr Harford said that "ECR has been able to agree favorable terms for the acquisition of Unchimé with the local vendors, who will become ECR's partners in the project and who have prior experience of successful bulk mineral production in Argentina. This partnership will add a valuable extra dimension to the venture, and discussions with the provincial government in Salta have indicated that development of Unchimé would enjoy strong local support." (By ECR Minerals)
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