SEPTEMBER 21, 2000 - 09:38 EDT
Atacama Minerals Corp.: ACF To Accelerate Development At
Aguas Blancas
VANCOUVER, BRITISH COLUMBIA--Atacama Minerals Corp. (the
"Company") is pleased to announce that it has finalized its
agreement with ACF Minera S.A. for the development and operation
of the Aguas Blancas industrial minerals project, located 100
kilometres from the major northern port of Antofagasta in the
second region of Chile. Please see attached map.
Under the terms of the final agreement, ACF, at its sole cost,
will accelerate development of the project through the
construction of a larger capacity heap leach operation which will
allow production to commence immediately at 720 tonnes of iodine
per year. ACF will be responsible for Aguas Blancas facility
construction, full operations and the marketing of processed
iodine. Initial iodine production is anticipated in the second
quarter of 2001. Further, within the next four years ACF will,
again at its sole cost, expand production at Aguas Blancas by the
development of an agitated (mechanical) leach facility capable of
processing an additional 720 tonnes of iodine per year. Pursuant
to the agreement, Atacama will transfer to ACF Minera a 50%
interest in Atacama Minerals Chile S.C.M., a wholly owned
subsidiary of Atacama.
ACF is one of the most experienced industrial mineral producers in
Chile having carried on operations since the early 1900's. ACF
currently produces in excess of 1,000 tonnes of iodine annually at
its Lagunas mine in Chile. Among many successful projects, ACF was
also responsible for the development and initial operation of the
iodine facilities of DSM Minera, a subsidiary of the Dutch
chemical conglomerate DSM Fine Chemicals B.V.
The decision to commence production at Aguas Blancas by heap
leaching follows an extremely successful joint ACF/Atacama heap
leach pilot project carried out over the last three months. Iodine
and sodium nitrate recovery rates realized from this large scale
test were much higher than projected, contributing to an increase
in the repasos reserves to 10 years. This is in addition to the
proven/probable virgin ore reserves which stand at 44 million
tonnes, supporting a 15 year mine life. Further extensive mineral
holdings at Aguas Blancas also hold potential for the development
of additional repasos and virgin ore reserves and, therefore, a
substantially increased mine life beyond 25 years.
Following successful development of the iodine facilities at Aguas
Blancas, Atacama and ACF intend to aggressively commence the
processing of nitrate and sulphate reserves. Initial annual
production of nitrates is projected at +100,000 tonnes and
sulphates +200,000 tonnes. At full production Aguas Blancas will
be one of the largest and lowest cost industrial mineral projects
in Chile.
Adolf H. Lundin, Chairman of Atacama commented, "The success of
final reserve testing at Aguas Blancas has led to the expansion of
our venture with ACF and the expectation of early iodine
production at higher rates than previously contemplated. The
quality of the reserves at Aguas Blancas, combined with ACF's
experience as a leading iodine producer with nitrate and sulphate
production background, will ensure that Aguas Blancas reaches its
full potential as one of the world's most important new industrial
mineral projects." |
