Shareholders in Gulf Resources (ASX: GLF) own perhaps the largest deposit of coarser grained vermiculite in the world.
Independent verification by SRK Consulting has confirmed the substantial size and grade of Gulf's 100% owned East African Vermiculite Project.
JORC inferred resource at the East African project is 54.9 m/t at 26.7% Vermiculite.
Scott Reid, Gulf’s Chairman said that ”independent verification of the size and grade of the East African Vermiculite Project deposit is a significant step for the company in confirming our intention to become long term players in the global vermiculite industry”.
For those not familiar, Vermiculite has numerous specialist uses including: lightweight form-stone / construction material (smooth pool bases prior to lining); Inert thermal insulation; Specialist kiln lining / brick material –enhances combustion efficiency; thermal construction boards and roof tiling.
Formerly owned by Rio Tinto, the project is capable of supporting a low cost, long life mining operation. With excellent local infrastructure and within 10kms of main international railway line.
The Namekara vermiculite deposit extends from near surface to a depth of between 45m and 55m and the can easily be dug using standard mechanical excavating equipment.
Andrew Johnstone, Gulf’s Chief Operations Officer, recently returned from the Ugandan operation, said “the independent SRK review included a new assessment of the complete drilling results, onsite geological investigations and resource modelling. The processing plant is operational and providing material for both ongoing test work and customer trials.”
Gulf aims to earn early cash flows within 12-18 months with only modest capital expenditure due to the advanced nature and funds spend by Rio Tinto.
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