NEWS - should help explain the start of a run!
NAR Resources - Aug.10.1999
Viability Study to be conducted WITH Hoogovens
NAR Resources in conjunction with the Titanium Corporation of Canada is pleased to announce that it has agreed to proceed with a viability study with Hoogovens Technical Services, a wholly owned subsidiary of Royal Hoogovens, a major Dutch steel and aluminum producer. Royal Hoogovens have recently announced a merger with British Steel PLC, making the resultant company the world?s third largest steel producer.
Titanium Corporation jointly with NAR is developing what is believed to be a world class mineral sands deposit 1 containing the titanium minerals; rutile, ilmenite, and leucoxene as well as magnetite and zircon. The deposit is situated in central Nova Scotia near Truro.
The viability study is focusing on introducing ilmenite (an iron and titanium mineral) as a raw mineral feedstock for the Sydney Steel facility in Cape Breton, Nova Scotia. The Nova Scotia government has retained Hoogovens to manage the provincially owned Sydney Steel operation (Sysco). Hoogovens is also working with the major Dutch Bank ABN-AMRO who has been commissioned by the Nova Scotia government to privatize Sydney Steel.
The agreement deals with the evaluation of a potential new source of raw material feedstock for Sysco. If the material is proved suitable for steel production in Sydney there are several distinct advantages which would be realized. Firstly, Sysco would have a preferential source of raw materials, which would come from a Nova Scotia source, thus giving the company a distinct competitive advantage. Secondly, Titanium Corporation and NAR would benefit from a processing arrangement, which would augment their anticipated titanium production.
The process under consideration involves locating a titanium slag facility at the Sysco site whereby two products would be generated, titanium slag and an iron byproduct. If a titanium slag facility were situated adjacent to the Sysco site it would allow the liquid iron byproduct to be used as a direct feed into the existing electric arc furnace. This offers a significant cost benefit for Sysco relative to the world market price for scrap or alternative virgin iron units and would contribute to a reduction in power and electrode consumption. Additionally, the titanium slag process generates significant quantities of fuel gas, which could be used directly by Sysco.
This scenario introduces a potentially positive outcome for Sysco, not only could it assist in the consortium?s effort to privatize the steel plant, but could also introduce profitable and long-term implications for Sysco.
A development-drilling program at the Mineral Sands Project is proceeding as scheduled with 300 holes having been drilled to date. Preliminary results are proving the merit of the deposit. Initial metallurgical test work conducted at MD Mineral Technology of Australia, Outokumpu-Carpco division in Florida and Lakefield Research of Ontario have yielded positive results. As a follow up to this initial work a three tonne sample has been shipped to Lakefield Research, where it is undergoing a detailed 18-week metallurgical test program.
1 Compared to published industry standards - Mineral Sands Annual Review.
Dated: August 10, 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 E-mail: ir@nar-resources.com |
