PRODUCTION STARTS AT WORLD-CLASS NAMEKARA VERMICULITE MINE
TORONTO, ONTARIO- Monday, July 9, 2001
IBI Corporation (YIB-CDNX) (the "Company"), a junior international mining and investment company, has completed the development of its
world-class Namekara vermiculite project in Uganda and has started commercial mining and production.
The processing equipment, which had been fabricated in nearby Mbale, has been moved to the mine site and installed in the newly constructed
processing building.
The 12,000 square foot building will house the processing equipment, and related infrastructure. The production process of the raw vermiculite
ore will involve dry stockpiling of raw ore, milling, drying, cleaning of foreign materials and grit, sorting and grading, laboratory process control,
and dry storage of finished inventory of processed vermiculite.
The initial targeted customers are in Europe and the Middle East. A sampling and testing program had been completed with these prospective
customers, and considerable positive feedback and expressions of interest had been received. Three such customers in Europe have placed
orders for one complete 20 foot (approximately 20 tonnes) shipping container each (55-60 tonnes in total). Management is currently finalizing
details of a blanket order for shipment to the Middle East. Other customers have indicated that they welcome new competition in the
marketplace and have tested samples; they are standing by to finalize orders as soon as initial production is completed.
The mine which had been opened last year is currently being enlarged to double its surface area, to enhance access to the vermiculite.
Overburden in certain of the new areas was only 1.5 metres thick. The overburden is being used to grade around the processing building and to
extend the access road another 1.25 kilometres to the nearby school.
Approximately 2,000 tonnes of vermiculite ore are currently being mined for stockpile under cover in the processing building.
Gary A. Fitchett, President and CEO, advised the Board: " Hans Hansen, as Managing Director of Canmin Resources Limited, and his management
team are to be complimented on bringing the mine start-up to a timely and low-cost completion. Hans' previous experience in developing the
Shawa vermiculite mine in Zimbabwe and his many years of business experience in Africa is reflected in his success with the Namekara project.
We have a very strong spring-board for the future success of the Company."
The Namekara mine is a "US$1 billion resource of vermiculite", as reported in the business section of the Uganda New Vision newspaper in
September 2000, with its outstanding physical characteristics of large flakes, unique cuboidal exfoliation, and complete absence of asbestos fibres
(as confirmed by several independent laboratory tests). The proven reserves of recoverable high-quality vermiculite are in excess of 5 million
tonnes, which represents in excess of 100 years' supply at planned production rates.
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The project is located on the Bukusu Ridge in Mbale District in south-east Uganda, and is 100% owned by the Company's wholly-owned
subsidiary, Canmin Resources Limited.
For further information, please contact:
Gary A. Fitchett CA - President and CEO Adam Cegielski - Investor Relations
Tel: (416) 367-3274 Tel: (905) 279-2622
e.mail: ibicorp@think.iprimus.ca e.mail: newibi@on.aibn.com
http:// www.thenewibi.com |
