Atacama To Proceed With Financing And Development Of
Aguas Blancas, Appointment Of Richard P. Clark As
President
VANCOUVER, BRITISH COLUMBIA--Atacama Minerals Corp. (the
"Company") is pleased to announce the decision of the Board of
Directors to proceed with the financing and development of the
Aguas Blancas Iodine Heap Leach Project. The heap leach testing
program carried out over the past 5 months was extremely
successful. Based upon the results from this program, the
Company's independent engineers, Pincock, Allen & Holt, have
developed a mine plan for a minimum of 15 years of iodine
production. These reserves represent exploration on only 30% of
Atacama's vast land holdings. Numerous other mineralized zones
have been identified and it is expected that further work in these
areas will expand the life of the Aguas Blancas mine well beyond
15 years.
Iodine is an important strategic element used in a number of
critical applications worldwide. These applications cut across
several industries including pharmaceutical, industrial and
agricultural areas. Worldwide consumption is projected at 18,000
tonnes for 1999, with a 3% growth rate forecast for the year 2000.
At full capacity, Aguas Blancas will account for approximately 6%
of global production.
The schedule for mine construction is 11 months. Initial
production will be iodine only, at 1267 tonnes per year. Capital
costs for construction are US$27 million. On a full equity basis,
the internal rate of return for the iodine project is estimated at
21% at current iodine prices. On a leveraged basis, 70% debt and
30% equity, the IRR for the project increases to 30%.
Of particular significance, recent test work of the leachable ore
has proven a much higher nitrate grade than previously expected.
Accordingly, nitrate and sulphate salts recovered from iodine
production will be stockpiled for later processing. At current
grades and with a future plant expansion, nitrate production could
exceed 100,000 tonnes per year, significantly increasing the
upside of Aguas Blancas. Independent marketing and engineering
reports have been commissioned to evaluate the nitrate potential.
These reports are expected within the next two weeks.
Commencement of construction at Aguas Blancas is scheduled for the
first quarter of 2000.
Following on the decision to proceed with the development of Aguas
Blancas, the operations of Atacama will now be centralized in
Santiago, Chile. In this regard, the Company is also pleased to
announce the appointment of Richard P. Clark as President of the
Company. Mr. Clark will initially coordinate financing of the
construction phase of Aguas Blancas, and in the first quarter of
2000 he will relocate to Santiago with his family to direct
Atacama's corporate and marketing operations. Mr. Clark is a
mining and securities lawyer with a specialty in industrial
mineral issues. For the past six years Mr. Clark has been active
as senior management in a number of V.S.E. and T.S.E. companies
and during this time has coordinated and assisted in capital
financing exceeding $100 million.
ON BEHALF OF THE BOARD
Adolf H. Lundin, Chairman |
