Alexander Mining Hopes To Make Its Fortune Out Of Technology Rather Than Mining
By Charles Wyatt
minesite.com[tt_news]=46100&tx_ttnews[backPid]=762&cHash=fba693b975
Whenever the subject of Alexander Mining crops up it is as well to remember the Activox ® technology developed by LionOre Mining International as it was this that was the real prize sought by Xstrata when it bid successfully for the company last year. Activox® was essentially a modified high pressure acid leach system, which produced an intermediate product which needs no smelting and can be sent direct to the refinery, thus lowering costs. Bright companies are always trying to achieve breakthroughs in existing technology to overcome metallurgical problems and AIM listed Alexander Mining looks as if it may have come up with twin successes through AmmLeachTM and HyperLeachTM. AmmLeach is an innovative new ammonia based mineral processing technology developed to overcome problems detected during feasibility work on the copper oxide deposit at its Leon project in Argentina, and HyperLeach is a new process for the extraction of base metals from sulphidic ores and concentrates.
LionOre had developed the Activox technology at its Tati nickel project in Botswana and in 2005 it acquired the Bulong nickel project plant assets in Western Australia. The assets purchased for A$15 million included the Bulong nickel processing plant and associated equipment. The aim was to use the new technology at Bulong to unlock value in nickel sulphides as Colin Steyn, the boss of LionOre, reckoned that Western Australia was full of ‘dirty nickel concentrates’ which no smelter would touch. He also had a trump card as samples from these mines could be tested by shipping samples to the demonstration plant in Botswana.
Technology such as this takes time to develop and in the case of Alexander it is taking even longer as chairman Matt Sutcliffe’s plan is to commercialise it on as big a scale as possible. He has therefore formed a new subsidiary, MetaLeach, which owns the intellectual property to both of these hydrometallurgical technologies for which provisional patents have been filed. He and Martin Rosser, chief executive of Alexander, are now in discussion with more than 35 companies, including several majors, who have shown interest in the technologies. Eleven have already signed confidentiality agreements and seven are already committed to metallurgical testwork programmes.
The company is therefore going through a long drawn out period when it has little to say and this is reflected in the current rating. Comparisons can be made with the development period of a mine prior to production. All shareholders want to know is that production has started and cash is rolling in and it is very difficult to come up with any news that will stimulate the share price until then. Messrs Sutcliffe and Rosser want to be able to announce that the first company, preferably a big one, is going to use one or other technology and details of the deal.
One of the key benefits of the AmmLeachTM process is said to be that that, unlike some new technologies, it requires no special purpose built equipment and is suitable for both low grade heap leaching and higher grade tank leaching. The difference from acid leaching is that the leaching is conducted in moderately alkaline solution with ammonia present as a complexant. The use of alkaline conditions allows the use of AmmLeachTM on high-carbonate ores where acid consumption would be prohibitive. At this stage Minews throws up his hands and admits that he is no metallurgist, but one advantage of the AmmLeachTM process over acid leaching stands out like a sore thumb. Decommissioning of the heap is extremely simple as no neutralisation is necessary and the potential for acid mine drainage is virtually eliminated. After final leaching the heap is simply washed to recover ammonia and then left to revegetate with the residual ammonia acting as a fertiliser.
Clearly the focus of the company is now on MetaLeach, but Leon should not be overlooked even though its chances of moving into production have been damaged by the introduction of export duties in Argentina. The current position is that the results of a feasibility study are awaited and some drilling is taking place to upgrade inferred resources to indicated. The company is well cashed up with over £8 million in the till, but nothing is being spent on exploration until the future of Leon is decided. If a couple of the big boys sign up for deals with MetaLeach the betting has to be that Leon will be put on the back burner and Alexander will join a select band of technology specialists providing solutions across the metals production process chain. Matt picks its peers as Braemore Resources and Zincox, both of which are also subscribers to Minesite, Everclear Solutions, Electrometals, Apicap and Ausmelt. |
