Rand, Thanks for the information on the Dead Sea project.
I will post the full release for MGAC.U
PRESS RELEASE
TORONTO: June 17, 1998
FOR IMMEDIATE RELEASE
ÿ
MAG ALLOY Commences Pre-Feasibility Study For Kouilou Project,
Signs Technology Agreements
Magnesium Alloy Corp. (MAC) is pleased to announce that the Company has entered into professional consulting and technology transfer agreements with AA&MP LLC, agent for the Russian National Aluminum and Magnesium Institute (VAMI). The agreements constitute the commencement of pre-feasibility studies and technological development programs for the evaluation of a magnesium extraction facility for MAC's Kouilou Project in the Republic of Congo. These studies are planned for completion in the first quarter of 1999.
The lead contractor for the pre-feasibility study will be Salzgitter Anlagenbau GmbH (SAB), an engineering and general contracting division of Preussag AG of Germany. Kavernen Bau-und Betriebs (KBB), another member of the Preussag Group, has extensive experience in all phases of solution mining including modeling of reserves, solution mining simulation, drilling production wells together with brine extraction and transport. KBB is currently involved with two carnallite solution mining operations in Europe with geological similarities to the Kouilou Project.
VAMI, SAB and KBB, the principal contractors along with several sub-contractors, will immediately commence detailed technical studies for inclusion in the Kouilou Pre-Feasibility Report. In addition, VAMI and the Zaporozhie Titanium Institute will conduct the evaluation of advanced and improved modifications to proven magnesium extraction technologies.
VAMI and the Titanium Institute took part in the design and implementation of the magnesium extraction technology for the Dead Sea Works Magnesium facility, the world's newest magnesium extraction plant. They also took part in the technical design for a proposed magnesium facility in Iceland in conjunction with Salzgitter. VAMI developed the technology and took part in the design construction of all the magnesium extraction plants in the former Soviet Union (Berezniki, Solikamsk, Kalush, Zaporozhie, Ust-Kamenogorsk).
VAMI's preliminary evaluation of MAC's Kouilou Project indicates that, subject to the availability of low cost energy as currently indicated, the proposed facility would be the world's lowest cost magnesium metal producer. MAC anticipates a first phase annual production rate of 58,000 tonnes with a second phase of over 116,000 tonnes. A production decision is anticipated in 1999 with production possible by 2001.
MAC is a public company listed on the Canadian Dealers Network (CDN) in Toronto and traded in U.S. currency under the symbol MGAC.U. More information is available on the company's Website at www.magnesiumalloy.ca.
MAC has 13,801,095 shares outstanding of which 8,000,000 shares are subject to a pooling agreement.
On behalf of Magnesium Alloy Corporation
William Burton
President
For further information, please call William Burton 416-947-9216 or 1-800-396-5188 |
