TIOMIN MAKES A SIGNIFICANT RUTILE/ZIRCON DISCOVERY IN KENYA
ME & TSE: TIO
TORONTO, Jan. 22 /CNW/ - Tiomin Resources Inc. has made a second major
titanium-bearing mineral sand discovery in Kenya. A recently completed
drilling program consisting of 128 holes has outlined a resource at Tiomin's
Sokoke prospect measuring in excess of 1.2 billion tonnes, grading about 3%
heavy minerals. This resource contains more than 1.5 million tonnes of rutile
and 1.2 million tonnes of zircon, as well as in excess of 10 million tonnes of
ilmenite. Higher grade zones within this resource are expected to contain
combined rutile and zircon grades approaching 0.5%, making it one of the
largest and highest grade undeveloped resources of rutile and zircon in the
world.
The Sokoke prospect is within 10 kilometres of the deep water harbour at
Kilifi, and is adjacent to existing power lines and a sealed highway.
A deep drilling program is about to commence at Sokoke to determine the
absolute depth of high grade zones in the western margin of the mineralised
area. Some deep holes will also be drilled on the Mambrui prospect, to
evaluate high grade zones not fully tested by the previous drilling. The
Mambrui prospect is estimated to contain over 650 million tonnes grading over
3% titanium-bearing heavy minerals. The mineralised zone at Mambrui contains
an estimated 15 tonnes of ilmenite and about 1.5 million tonnes of combined
rutile and zircon.
A prefeasibility study is already underway on the previously announced
Mambrui prospect. A bulk sample is undergoing metallurgical testwork in South
Africa, Australia and Canada. Various conceptual engineering studies have been
commissioned.
The combined titanium mineral resources contained in these two projects
demonstrate the potential for Kenya to be a future major producer of these
minerals.
The discovery of economic grade titanium mineral sands in Kenya will
complement Tiomin's Natashquan mineral reserve base by substantially
increasing its zircon resource and adding significant quantities of highly
valuable rutile to its portfolio. Both zircon and rutile currently sell at the
$500/tonne level while ilmenite trades in the $80 to $110/tonne range. The
overall titanium minerals/pigment industry generates annual sales of nearly $7
billion, comparable to the sales volumes reported in the nickel, zinc and
diamond markets.
A pre-feasibility study is underway at Tiomin's Cerro Colorado copper
project in Panama and a feasibility study is in progress on Tiomin's
titanium/iron project in Natashquan, Quebec. Exploration drilling on the Annic
project, a nickel/copper/cobalt joint venture with SOQUEM, will commence on
three targets in mid-February, 1997. Tiomin has approximately 33.9 million
shares outstanding (fully diluted 47.9 million shares), no debt and $24
million in cash (fully diluted $56.9 million in cash).
NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY
HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.
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For further information: Judy Webster, Investor Relations or J.C. Potvin, Chairman & CEO at: (416) 350-3779, Fax: (416)
350-3570 |
