Below is a recent news release of one of the most exciting mining plays I have seen in a long time. What the release does not mention is that the resource estimate for the deposit is 308 million tonnes and the mineral bearing sands have only been drilled to a depth of 15 feet. It is realistic to assume that the titanium bearing mineral sands will go to a depth of at least 30 feet (or deeper depending on where bedrock is hit) and that the percentage of "heavies" will increase at depth. It may possible to find a resource of a billion tonnes but that will obviously take time to find.
What is also incredible about this property is that the percentage of heavy minerals is very high and the metallurgy appears to be getting better each passing day. Metallurgical work is currently being conducted by Lakefield. I am told that by using flotation methods, some very encouraging results are being achieved.
Unlike almost all commodities the past couple of years, titanium dioxide has enjoyed a strong market with rutile currently selling for roughly $550/tonne, Leucoxene at $450/tonne, and ilmenite at $80/tonne. Another element of the deposit is zircon which currently sells for roughly $450/tonne. Primary uses for titanium dioxide include paint pigment, plastics, paper, sporting equipment, and human joint replacement. Zircon's primarily used for making ceramic tiles but also is used in products such as deodorant, T.V. screens and more.
The type of mining operation that is being attempted by the j/v is similar to that of Richards Bay minerals in S. Africa (www.richardsbayminerals.co.za). Richards Bay is a j/v between Rio Tinto and Billitons plc. and achieves annual revenues of roughly $800 million U.S. with an after tax profit of over $200 million. The RBM deposit is mined using 5 dredges on water and the sands are processed using 4 electric arc furnaces which produce a titanium slag and pig iron(used to make steel).
One last note about the the titanium industry is that it is 1.5x the size of the worlds nickel market and 1/5th the worlds copper market.
The principals behind the NAR/Titanium Corp. j/v have a past history of putting mines into production. There are currently on 6.1 million shares outstanding on NAR and 8.3 fully diluted.
"NAR RESOURCES/ TITANIUM CORPORATION DRILL PROGRAMME BEGINS
The Company is pleased to announce that Titanium Corporation of Canada Limited ("Titanium") has begun its planned in-fill drilling programme of its titanium mineral sands property near Truro, Nova Scotia. The property, which comprises a group of contiguous mining licences aggregating approximately 27 square miles is located along the Hants/Colchester county lines starting at Admiral Rock and follows the Shubenacadie River northward to the eastern reaches of Cobequid Bay.
Under its previously announced agreement with Titanium, the Company is required to fund an exploration programme on the property in the amount of $1,000,000 over a twelve month period, of which the Company has advanced $500,000 to date; in return for its investment, the Company will earn an undivided one-third interest in the property. After it has earned this interest, the Company may, at its option, call upon Titanium to complete a business combination pursuant to which the Company and Titanium will amalgamate on the basis that the issued shares of the amalgamated corporation will attribute to the respective predecessor corporations in the ratio of one-third to two thirds. Such combination will be subject to shareholder and regulatory approval. If for any reason the business combination is not completed, the further exploration and development of the property will be conducted pursuant to a joint venture between the Company and Titanium.
Titanium expects to complete 900 vibra core drill holes to a depth of plus or minus 16 feet over the next three months. These holes will be spaced at 325 foot intervals in order to cover the full extent of the deposit. A deeper drilling programme will follow in the Autumn.
Prior drilling, sampling, surface prospecting and metallurgical testing by Titanium had indicated an extensive mineral sands deposit containing the titanium minerals rutile, ilmenite and leucoxene as well as magnetite, monazite, garnets and zirconium. This prior drilling programme, spaced at one-mile intervals to a depth of 13 feet, had indicated an average heavy mineral content of 8.5%. Metallurgical work carried out to date has established that an acceptable proportion of the economic minerals can be recovered by means of conventional processing. Mineral sands operators in Australia, South Africa and the United States are currently producing concentrates from sands the heavy mineral content of which ranges from 2% to 4%.
Titanium is also conducting base line environmental studies in order to facilitate the environmental review process.
Dated: June 14, 1999
Stock Symbol: NRL-ME
ON BEHALF OF THE BOARD OF DIRECTORS
(SIGNED)
Leonard J. Taylor, President
For further information, please contact: Kevin B. Forrest, Shareholder Relations Officer
Telephone: (416) 703- 2121 Fax: (416) 703- 9009
nar-resources.com "
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