18th May 2016 08:07
LONDON (Alliance News) - FinnAust Mining PLC Wednesday said it has received the initial results from the analysis of the concentrate produced at the Pituffik titanium project in Greenland and said it has identified two markets that it could sell its product into.
FinnAust said the initial analytical results from of the ilmenite separated from the heavy mineral concentrate from the Pituffik project indicates the current "non-optimised" form of the ilemnite concentrate being produced is "well suited" for use in the suplhate production process of titanium dioxide pigment.
Ilmenite is the most important ore of titanium after surpassing rutile as the main ore mineral of the metal.
The miner said the final pigment product contains low amounts of deleterious elements, meaning it should be easily soluble in low strength sulphuric acid.
"This non-optimised ilmenite concentrate from Pituffik gives the company a high degree of confidence that with a very small amount of further purification on larger samples from the main zones at the project, the concentrate could also be suitable for chloride slag manufacture to produce either titanium dioxide pigment or titanium metal," said the miner.
TZ Minerals International Pty Ltd was also hired to analyse which markets would be suitable to sell its product from Pituffik into, and has confirmed that both the chloride slag and sulphate routes are both large and growing global markets with potential customers being identified in Europe and Asia.
"TZMI have identified increasing ilmenite supply deficits into the medium and longer term, it is these forecast supply gaps that are presenting the company with an excellent opportunity to deliver Pituffik product into this market shortfall, and the inclusion of chloride slag production as a second potential major market provides the company with increased optionality with respect to end-users," said FinnAust.
"Results continue to reinforce the view that developing a long-life operation at Pituffik is achievable and furthermore could result in the generation of a long-term source of globally traded mechanically eroded hard rock ilmenite," the company added.
FinnAust Chief Executive Roderick McIllree said the company;s focus remains on delivering a maiden resource for the project during this year, leading to a bulk sample being produced in 2017.
The CEO also said ilmenite prices have "stabilised" in the first quarter of 2016 due to increased demand from pigment manufacturers, which have 6.0% to 12% more pigment in the period than a year ago, according to McIllree.
"With what is turning into a large and high grade ilmenite deposit, close to established infrastructure, the positive pricing fundamentals and end markets identified, I believe that the Company is well positioned for future growth," he said.
FinnAust shares were down 1.4% to 5.50 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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