NAR Resources has been behaving well of late. Here is the news release from today.
NAR Resources Ltd -
NAR Resources to conduct study with Hoogovens
NAR Resources Ltd NRL
Shares issued 6,540,697 1999-08-09 close $1.9
Tuesday Aug 10 1999
Mr. Leonard Taylor reports
NAR Resources in conjunction with the Titanium Corporation of Canada have 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 has 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, N.S. 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, which 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 followup 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.
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