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Thermal Fragmentation..a multi-billion dollar market
by Bernard Gauthier06-06-2007 |
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Article:
Since the time of conception surrounding the technology of a thermal
fragmentation process to exploit narrow high-grade precious metal veins,
Rocmec's objective has always been to implant it within the entire mining
industry, targeting the Canadian market first, followed by our neighbours to the
south.
The thermal fragmentation process is already at work at the Rocmec 1 mine,
located 35 kilometres west of Rouyn-Noranda in the Abitibi region of Quebec. The
technology has proven itself and a mine visit by mining industry representatives
is all it takes. Many have decided to see for themselves and were absolutely
amazed by the results. "What the representatives notice first and foremost is
that the technology is mechanized, an important cost savings advantage. Also,
the concept of a programmable automat replaces the physical work of a miner to
dynamite the rock, explains Donald Brisebois, president and CEO of the company,
he adds, that the thermal fragmentation process can operate in confined areas,
taking out only the mineralized ore, leaving behind the waste rock that would
otherwise be mixed with the precious metal."
Current negotiations
"We are currently in discussions with a few potential partners. We will also
be setting up a sales team and a subsidiary that will be named Rocmec
Technologies and wholly owned by Rocmec Mining Inc. Its mandate will be to
secure contracts that will offer services, supervision and thermal fragmentation
know-how", stated Mr. Brisebois.
Canada-United States
Rocmec is convinced that it will establish partnerships within a year or two.
Discussions are currently underway in the United States with a company that owns
five mining sites that are amenable to thermal fragmentati on. According to Mr.
Brisebois, during the 1930's-1940's many mining companies did a great deal of
exploitation work and later had to cease operations because of the huge
quantities of waste rock. With thermal fragmentation, the problem is solved, and
that is the reason why Mr. Brisebois strongly believes that many partnerships
will be created over the next two years.
Foreign markets
Once Rocmec signs its first partnership agreements with Canadian and American
mining companies, it will focus its attention on foreign markets. In one sense,
the process started last year when Rocmec was granted a patent for South Africa.
"After Canada, it is the second most important patent for the development of the
technology. There are numerous narrow-vein deposits in South Africa that can be
exploited with thermal fragmentation", asserted Mr. Brisebois.
Not only is gold abundant in South Africa, but also phenomenal quantities of
other precious metals such as palladium and platinum. South Africa is host to
the most important mining companies, representing a multi-billion dollar market
for Rocmec. "Each of these companies can have 30 mines operating with very
little mechanization, explains Mr. Brisebois. That is where thermal
fragmentation can play a very important role."
Australia and Mexico are two other countries where Rocmec plans on
establishing partnerships. Other countries located in South America where
patents have been filed, Brazil for example, are also on the list.
Resources doubled
Last year, Rocmec invested approximately 5.2 million dollars in exploration
at its mine located close to Rouyn-Noranda. It is the final phase of development
before entering into production. During last December, the company had already
poured a gold bar weighting 617 ounces. "We have doubled our mineral resources
from 277,000 to 534,000 gold ounces from within five different veins and we are
very proud of the results of the last 12 months", stated Mr. Brisebois.
When the mine was b rought into in production during the 1980's the
activities were uneconomical, in the literal sense of the term. In acquiring the
mine in October 2005, Rocmec's objective was to demonstrate to the mining
industry that thermal fragmentation was a cost-effective way to render the
operations profitable. It is a success. "Individuals involved in the industry
are somewhat conservative and need to see with their own eyes how they can
increase the return on their investments, mentioned Mr. Brisebois. Our
technology has been in operation for the past few quarters; the results speak
for themselves, reassuring everyone."
Rocmec 1 contains very important gold grades. There is no dilution. "All this
is very special to the mining industry because normally, companies spend
enormous amounts on development", added Mr. Brisebois.
Exclusive marketplace
Rocmec is the only company in the world to offer its technology. Patent
requests have been filed in countries where mining companies would be likely to
use thermal fragmentors. "Each unit takes about twelve weeks to build. However,
we are currently negotiating with a company specialized in building mining
equipment to reduce the delay to between eight and ten weeks. Considering that
the unit is quite simple to operate, there is no need for a specialized
work-force, training usually takes less than three weeks", states Mr. Brisebois.
Objective: Major Producer
According to Mr. Brisebois, Rocmec's growth is intimately tied to its
technology, its services and its revenues. "That is why it is so important to
transform a company with hardly any revenues into a company that is profitable.
Our objective is to further the development of the mining industry by increasing
its mechanisation", he said.
Rocmec employs about 40 people, and the Rouyn-Noranda mine operates 7 days a
week, 24 hours a day. Even though thermal fragmentation and partnerships are the
driving forces behind Rocmec, the company plans on remaining quite active in the
acquisition market. For Mr. Brisebois, when one takes into account the changes
within the industry over the past years, this vision is paramount. "In our
opinion, many deposits could be better developed by smaller companies, and that
explains our vigilance, mentions Mr. Brisebois. We are aware of the properties
that are available and on the look-out for another mine similar to Rocmec1 or
better, at a reasonable price."
For the moment, our objective at Rocmec 1 is to produce between 35,000 and
40,000 gold ounces per year, returning net revenues in the order of 5 to 6
million dollars. By acquiring two or three additional properties, Rocmec
estimates that would be able to increase production to attain 150,000 to 200,000
gold ounces per year, making it an important producer in the industry.
Rocmec Mining Inc.
1, Holiday Avenue, suite 501
East Tower
Pointe-Claire, Quebec, H9R 5N3
Ph: 514-428-4185
Fax: 514-630-6989
Toll Free: 1-888-576-2632
www.rocmecmines.com
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