GL Energy and Explorations Inc.: Description of Ore Bodies, Tonnages, Grades, and Revenues.Business Editors 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 pave tr.v. paved, pav·ing, paves 1. To cover with a pavement. 2. To cover uniformly, as if with pavement. 3. To be or compose the pavement of. 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 sulphide: see sulfide. , thorium thorium (thôr`ēəm) [from Thor], radioactive chemical element; symbol Th; at. no. 90; at. wt. 232.0381; m.p. about 1,750°C;; b.p. about 4,790°C;; sp. gr. 11.7 at 20°C;; valence +4. , 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 rutile, mineral, one of three forms of titanium dioxide (TiO2; see titanium). It occurs in crystals, often in twins or rosettes, and is typically brownish red, although there are black varieties. , Zircon zircon Silicate mineral, zirconium silicate, ZrSiO4, the principal source of zirconium. Zircon is widespread as an accessory mineral in acid igneous rocks; it also occurs in metamorphic rocks and, fairly often, in detrital deposits. , Magnetite magnetite (măg`nətīt), lustrous black, magnetic mineral, Fe3O4. It occurs in crystals of the cubic system, in masses, and as a loose sand. , Ilmenite ilmenite (ĭl`mĕnīt), black mineral, iron titanium oxide, FeTiO3, crystallizing in the hexagonal system. It is sometimes found as tabular hexagonal crystals but occurs more commonly as small grains in igneous and metamorphic , Olivine olivine (ŏlĭv`ēn), an iron-magnesium silicate mineral, (Mg,Fe)2SiO4, crystallizing in the orthorhombic system. , Garnierite garnierite (gär`nēərīt'), pale apple-green mineral, chemically a hydrous silicate of nickel and magnesium. An important ore of nickel, it is found in New Caledonia, Russia, and S Africa. and Rare-Earth Oxides (REO reo Noun NZ a language [Maori] ) in a matrix of quartz.
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
Certain of these statements contained in the press release may be deemed forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and its Quarterly Reports of Form 10-Q Form 10-Q See 10-Q. . |
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