In accordance with the feasibility and equity participation agreement (the agreement) between CVMR® Corp. (CVMR) and Nevada Marketing Consultants LLC (NMC), 100% owner of the White Moon Mine (aka Needles Magnesite Deposit), CVMR will conduct a feasibility study (FS) to substantiate the measured, indicated and inferred magnesite ore contained in the White Moon mine over and above the current 527 000 t of magnesite deposit that is exposed at the surface.
Because previous testing, drilling and trenching by the U.S. Geological Survey and others found high quality magnesite at depths of 100 ft, it is possible that there are an additional 5 - 10 million short t of magnesite at White Moon. Other than substantiating the magnesite reserves in White Moon, the secondary objective of the FS is to determine the technical and economic viability of alternative refining solutions currently available to White Moon for processing its magnesite ore. To accomplish this project, NMC has asked CVMR to perform the FS at a substantially reduced cost (US$1.5 million) and reduced time (six months). In exchange for the substantially reduced cost and time for the FS, the agreement requires NMC to give CVMR additional compensation which is a 10% equity interest in NMC/White Moon, immediately subsequent to the completion of the FS. NMC was introduced to CVMR by Nova Capital International LLC, NMC’s exclusive investment banker.
The White Moon ore body consists mainly of very high-grade magnesite. This is one of the purest forms of magnesium-bearing ores when compared to other magnesium mine compounds. Magnesium is a crucial element used in the aerospace, defense, automobile and medical industries. There is an increasing demand for magnesium in the US. Magnesium is an attractive material for automotive, aerospace and defense industries, primarily because of its light weight – 36% lighter per unit volume than aluminum and 78% lighter than iron. When alloyed, magnesium has the highest strength-to-weight ratio of all the structural metals.
China (18 million t), Turkey (2.7 million t) and Russia (1.3 million t) produce over 80% of the world’s magnesite every year. Currently, the US imports over 390 000 short t of magnesite every year. White Moon could replace up to 64% of the imported magnesite because White Moon may be capable of producing 250 000 short t of magnesite annually for 30 years. Magnesite produced from White Moon will have substantial economic advantages over imports from China because of substantially lower transportation costs and no tariffs, which are currently imposed on magnesite imports from China.
The chemistry is old, but CVMR’s vapour metallurgy processes and technologies are new, proprietary and currently in use in Canada, China, Latin America and the US. Norilsk and Vale/Inco also use similar processes in refining their feed materials, but their systems use very high pressure, consume substantial energy, require high-grade ore, and cannot refine various metals from the same ore compound in the same throughput. Using the CVMR vapour metallurgy process does not melt the metals as is done in the usual smelting processes. CVMR plants are pollution free and completely neutral to the environment. They create no air, water or soil pollution of any kind. CVMR’s plants are hermetically sealed and all gases used in the process of vapourising the metals are recycled. In addition to mining and beneficiation of various ore compounds, CVMR refines various metals by chemically vapourising them at low pressures and relatively low temperatures. It simultaneously manufactures various metal powders and metal parts (net shapes) as part of the same process, for the end user markets.
N. Victor Emmanuel, Chief Operating Officer at CVMR, highlighted International Magnesium Association report that “the underlying demand for magnesium remains quite robust in the US as the aluminum alloying sector ramps up amid a booming automotive market.”
He added: “White Moon is in an enviable position to take advantage of this vast, highly diversified and ever-expanding market in the US and beyond.”
Read the article online at: https://www.globalminingreview.com/exploration-development/14122018/white-moon-to-be-second-magnesite-mine-in-us/