Burin Minerals Ltd Is Looking for China Cooperators
Burin Minerals
Ltd is looking for China cooperators.
Source：Foreign Economic Cooperation (http://fec2.mofcom.gov.cn) Reedited
by CITCC
Burin Minerals Ltd.(BML) is a registered Newfoundland & Labrador mining
company and a wholly owned subsidiary of Burin Fluorspar Limited (BFL) of
Alberta, Canada. BML owns mineral licenses and mining leases to all the
major fluorspar deposits located at St. Lawrence on the Burin Peninsula,
on the southeast coast of Newfoundland. The fluorspar resources are of high-quality
with over 8 million tonnes of measured and indicated resources and a further
2.2 million tonnes of inferred resources. There is also a very high potential
for further discoveries.
Fluorspar mining had its origin in St. Lawrence in 1933. The mines operated
under the control of The Aluminim Company of Canada (ALCAN) until 1978 when
the mines closed down due to low-cost Mexican fluorspar. They re-opened
in 1988 only to shut down again in 1991. The 85,000 t (acidgrade) mill and
other mine buildings were moth-balled. In 1995 the Newfoundland Government
gave control of the St. Lawrence fluorpar properties to BML and later sold
the assets to BML. Over $4 million has since been spent in feasibility work.
BML is presently joint-ventured with Glebe Mines Limited, a UK fluorspar
producer, with Glebe providing technical support to the St. Lawrence project.
In addition to Glebe, BML has its own technical and management group in
St. Lawrence with me the general manager. BFL is a corporation owned by
Canadian shareholders, the major shareholder of which is Mr. Gordon Stollery
of Markham, Ontario, Canada.
Burin is presently seeking startup capital for its project. In light of
the booming Chinese economy and a need to reduce fluorspar exports to compensate
for an increasing internal requirements BML would like to talk with potential
Chinese investors about investing in the Newfoundland fluorspar industry.
BML believes there is an opportunity in St. Lawrence for the Chinese to
offset its reduction in fluorspar exports at home with production from St.
Lawrence. With a major interest in BML, the Chinese investor could potentially
sell acidgrade fluorspar to its North American customers from St. Lawrence
thus releasing some of its internal production for homeland use.
Some of the highlights and competitive advantages of BML's St. Lawrence
fluorspar project are as follows:
1. Product Quality
The product is of above-average quality with low phosphorus and arsenic
levels.
2. Proximity to the Port
The mill and mine are located within 1 km of the shipping facilities.
Product will be delivered directly to the ship via a conveyance system.
3. Deepwater Port
A new port facility will be built, subsidized at $10 million by the Newfoundland
Government, and will dock and load ships up to 60,000 tonne capacity.
4. Mine Assets
Current total mineral resource estimates for the Blue Beach North, Tarefare,
Blowout and Director deposits are 10.3 million tonnes at 53.3% CaF2. Potential
by-products include aggregate, dimension stone, and sulphides (silver,
lead and zinc) that have been identified within the geology.
5. Mine Life
Initial reserves based on just 2 deposits estimate a 10-yr life however
with additional underground development there is potential for extending
the mine life considerably.
6. Mill Assets
The mill, built in 1987 and designed for 85,000 tpa of concentrate, is
fully equipped and was professional mothballed in 1991. The mill assets
are valued at over $10 million (Can).
7. Location
North American chemical companies are some of the largest consumers of
acid-grade fluorspar and are interested in access to a high quality reserve
in a stable economic and political environment. North American demand
exceeds supply by a factor of 5. Burin’s production would be only 12%
of North American demand and less than 5% of the world demand. St. Lawrence
is conveniently located to service western European markets as readily
as North American markets.
8. Extent of Resources
Resources are estimated at 10 years based on 2 of 41 fluorspar veins identified
on property leased or staked by Burin. In 1999, 14,000 meters of new diamond
drilling were carried out on 2 of 3 veins and potential for 800,000 plus
tonnes of new resources in a 4th vein were identified. Burin plans to
drill additional meters.
9. Low Cost Producer
Combination of fluorspar and aggregate production will allow Burin to
be competitive with the world's low-cost producers.
10. Tax holiday
Burin has been granted a 10-year plus exemption from provincial corporate
taxes.
11. Available and trained workforce
Most of the required workforce is located within 2 km of Burin’s mine
site.
12. Advance marketing
Burin has secured the services of Minmet Financing of Switzerland to assist
in contract negotiations with North America and European customers many
of whom have already agreed in principle on a purchase agreement. Minmet
has over 40 years experience in worldwide fluorspar marketing.
13. Chinese Factor
Growth in the Chinese economy is putting pressure on prices and raises
concern about future availability as China re-directs exports to domestic
consumption.
Contact ：Phonce Cooper, P. Eng. General Manager
Add: Burin Minerals Ltd.
P. O. Box 337
St. Lawrence, NL
A0E 2V0
Tel：1－709-873-3331
Fax：1－709-873-3335
Email: pcooper@nf.aibn.com
