NEWS: Thursday March 11, 8:41 am Eastern Time
Company Press Release
Raymor-Li2O content of 1.14% obtained from the La Motte Lithium deposit, and the production of concentrate of spodumene aim at 6.0% Li2O in the prefeasibility studies conducted by SOQUEM INC., a subsidiary of SGF MINERALE INC.
QUEBEC, Quebec, March 11 /CNW-PRN/-Raymor Resources Ltd is pleased to announce that the 1.14% Li2O content has been confirmed by the Centre de Recherches Min\006rales du Qu\006bec (CRM)in a representative 50 tonne sample from the La Motte property lithium deposit. The lithium oxide content calculated previously on the lithium deposit was 1.07% Li2O; samples of spodumene with 5.2% Li2O to 6.3% Li2O were also produced previously.
Conceptual prefeasibility studies began with the collection of a 50-tonne representative ore sample in Nov.1998, followed by characterization studies on La Motte property ore in Dec.1998. Several complex analyses were made on thin, polished laminas: microprobe analysis, X-ray diffraction analysis, optical microscopy and photomicrograph. These analysis made it possible to identify mineralogical characteristics of the spodumene, mica, feldspar and quartz that are found in this spodumene pegmatite. The ore characterization, which is now completed, was a prerequisite to the start-up of laboratory studies on the development of ''the process'' for the production of spodumene concentrate at 6.0% Li2O; it will also make it possible to establish the best ore flotation sequence for the recovery of byproducts: mica, feldspar and quartz.
Laboratory studies, currently under way, should be completed by the middle of March and will be followed by ''the process'' pilot project until April 15, 1999, in order to produce spodumene samples with 6.0% Li2O and representative samples of mica, quartz and feldspar that will be used to complete market studies. Even if the work did get under way late,it is progressing at a constant pace and the final report on prefeasibility should be submitted, as anticipated, on May 31, 1999.
The prefeasibility report prepared by SOQUEM INC. at a cost of $425,000 will include all the costs related to the development of an open-pit mine for the La Motte property lithium deposit, and a return of a target 30,000- tonne/year production of spodumene with 6.0% Li2O (+ US$300 /tonne) and byproducts (mica, feldspar, quartz).
Based on studies commissioned by Raymor in 1998, the return on a production of 30,000 tonnes per year of spodumene with only 5.2% Li2O (US$200/tonne) could generate earnings of 8.7 $M/year with a 25.35% internal rate of return (IRR), without taking into account the byproduct added value.
With a production objective of 6.0% Li2O spomudene, higher revenues and earnings are expected. Spodumene prices may even reach US$410/tonne with a 7.5% Li2O content.
A major U.S. ceramics manufacturer has already showed interest in buying the spodumene production.
Confident in the prefeasibility results, Raymor is currently negotiating with partners for rapid development of the future phases of the lithium project, including: the production of lithium carbonate (98.98% Li2CO3) at a sale price lower than US$4.40/kg, and the production of other lithium products.
Another press release will follow soon.
The Alberta Stock Exchange neither approved nor disapproved the content of this press release.
CONTACT: Jean-Claude Vachon, Investors relations - Qu\006bec,
(418) 652-1810, Fax (418) 652-1207; Source: St\006phane Robert, President, Ressources Raymor Lt\006e
Source Raymor Resources Ltd. |
