GL Energy and Explorations Inc GEEX : Description of Ore Bodies, Tonnages, Grades, and Revenues
VANCOUVER, British Columbia--(BUSINESS WIRE)--Aug. 20, 2003--GL
Energy and Explorations (GEEX) is disseminating this information to
clarify the Chilean Ore deposits, not including the Gold deposits
which were announced on their own in our news release of July 1st,
2003.
SEM Mining Corporation S.A. a company 60% owned by GL Energy &
Explorations has several heavy mineral sands deposits in Chile with
the following key parameters:
These deposits have excellent accessibility. They are a few
kilometres from a rail road and/or deep sea port and near a major
paved highway, and all are situated beside the ocean.
All these deposits are clean. They do not contain any clay, soil,
or any other contaminants such as sulphide, thorium, or uranium. The
deposits do not have any soil, forest or grass cover.
There are no people at or near the deposits. Due to the nature of
the deposits and the recovery technology to be used the reclamation
costs are minimal.
The Ore deposits are clean mineral sands deposits containing
Rutile, Zircon, Magnetite, Ilmenite, Olivine, Garnierite and
Rare-Earth Oxides (REO) in a matrix of quartz.
-0-
*T
The tonnages and grades are shown below:
Duna Choapa Norte La Barca
----------------- --------
Indicated Ore Reserves 45.77 100.56
(Million Metric Tons)
Rutile (%) 1.625 2.05
Zircon (%) 0.109 1.32
Magnitite(%) 10.70 9.71
Ilmenite (%) -- 0.29
Nickel (Not Included)
REO (Not Included)
Note: Please note that the term Indicated Ore is the term used in open
pit mining which is equivalent to Proven Ore in underground
mining.
ECONOMICS (Heavy Minerals)
-------------------------
Duna Choapa Norte Orebody
-------------------------
Indicated Ore Reserves: 45.77 Million Metric Tons.
Grades and Value per Ton:
2002
Minerals Grade Price/Metric Value/Metric
(%) Ton ($US) Ton ($US)
------------ ------------
Rutile 1.625 2000 32.50
Zircon 0.109 546 0.59
Magnetite 10.70 35 3.74
Ilmenite -- 83 --
Nickle (Not Included)
REO (Not Included)
Gross Value ($US) 36.84 / Metric Ton
Revenue:
-------
Net recoverable value at normal recovery rate of 75% 27.63
Less Operating Cost per ton of a 7200tpd Mill 0.50
Less Management Fees, Engineering Costs,
Laboratory (UDA) Costs, Consulting Fees,
Marketing Costs 3.00
-----
Net Profit before taxes ($US) 24.13 / Metric Ton
Net Profit per day: 7200 x $ 24.13 = ($US) 173,736
Net Profit per year: 365 x $173,736 = ($US) 63,413,000
Life of Mine: 17 years
La Barca Orebody
----------------
Indicated Ore Reserves: 100.56 Million Metric Tons.
Grades and Value per Ton
2002
Mineral Grade Price/Metric Value / Metric
(%) Ton ($US) Ton ($US)
------------ --------------
Rutile 2.05 2000 41.00
Zircon 1.32 546 7.20
Magnetite 9.71 35 3.40
Ilmenite 0.29 83 0.24
Nickel (Not Included)
REO (Not Included)
Gross Value ($US) 51.84 / Metric Ton
Revenue:
-------
Net recoverable value at 75% rate of recovery 38.88
Less operating cost per ton of 7200tpd Mill -0.50
Less Management Fees, Engineering Costs,
Laboratory (UDA) Costs, Consulting Fees,
Marketing Costs 3.00
-----
Net Profit before Taxes ($US) 35.38 / Metric Ton
Net Profit Per Day: 7200 x 35.38 = ($US) 254,736
Net Profit per Year: 365 x 254,736 = ($US) 92,978,000
Life of Mine: 38 years
*T
Certain of these statements contained in the press release may be
deemed forward-looking statements. Such statements, and factors that
could cause actual results to differ materially from these statements
and matters are the risks that other factors detailed from time to
time, in the Company's reports with Securities and Exchange
Commissions, including, but not limited to, the Company's Annual
Report on Form 10-K and its Quarterly Reports of Form 10-Q.
--30--AS/na*
CONTACT: Pacific Bay Financial Corporation
Mike Skerry, 888-821-6607
KEYWORD: CHILE INTERNATIONAL CANADA LATIN AMERICA
INDUSTRY KEYWORD: MINING/METALS ENERGY PRODUCT
SOURCE: GL Energy and Explorations Inc.
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