Light Metals News - Metals Place

Major deal for iron ore minor Aurox

2010-02-09T19:06:55Z

Australian junior Aurox Resources says it has signed a binding but conditional deal with Metallurgical Corp of China to construct the $1.8 billion Balla Balla magnetite (iron ore) project near Port Hedland and help Aurox secure Chinese debt funding.
It is understood Aurox expects any Chinese banks that provide funding to also take a stake in the project.

Yesterday, Aurox said MCC had signed a binding heads of agreement to provide engineering, procurement and construction services. This was conditional on MCC helping to find Chinese debt funding on suitable terms.

Aurox shares fell 1.5c to 31c yesterday on a generally positive day for iron ore miners.

The market may have been expecting more from Aurox, which had gone into a trading halt on Thursday pending a material agreement on Balla Balla. Aurox previously expected the project to cost $2bn, but a new estimate from MCC reduced this to $1.767bn.

The cost estimate was non-binding, Aurox said.

Under Aurox's plan, Balla Balla is targeting 10 million tonnes a year of magnetite concentrate, with first production at a rate of 6 million tonnes a year from 2012.

The concentrate, which would have a grade of 57.7 per cent iron ore, would be piped 110km to Port Hedland.

From 2015, when iron ore production would ramp up to 10 million tonnes a year, the mine would also produce 7000 tonnes a year of ferro-vanadium at a grade of 80 per cent and 470,000 tonnes a year of ilmenite concentrate containing 45 per cent titanium dioxide.

Aurox has commitments to sell 6 million tonnes of magnetite a year to Chinese companies.

SIRIOS Resources discovers rubidium, tantalum, beryllium and cesium mineralization at its pontax-lithium property jointly owned

2010-02-09T19:01:30Z

SIRIOS Resources Inc. has released the assay results from several metals associated with its lithium discovery on the Pontax- Lithium property. The property is equally held with Exploration Dios Inc. and is located in James Bay, Quebec.

Highlights from the lithium pegmatite results showed grades of up to 4,980ppm g/t over 1.8 meters of rubidium (Rb), 484ppm over 3 meters in beryllium (Be), 204ppm over 4meters in tantalum and 480ppm over 2 meters of cesium.

The drilling and the channel sampling that took place last fall indicated a zone or swarm of pegmatites mineralized in lithium and other metals with a width of up to 50meters over a strike length of over 425 meters.

Sirios Resources Inc. (Sirios) is a Canada-based company. The Company is engaged in exploration of gold or base metals deposits in the James Bay region of Eastern Canada.

Vanadium continues to ride on the positive

2010-02-09T18:54:54Z

January 2010 can clearly be recorded in the books as a good month for vanadium and its associated alloys. The end of the month saw the price of ferro-vanadium ending up at US$ 6 per kg more than the opening price at the start of the month - from $24/$28 per kg to $26-$29 per kg.

Traders have explained the spurt as increased enquiries in this minor metal, leading, in turn, to a shortage in supply. February started off on a similar sentiment but towards the end of the first week, prices in almost all the 3 major markets have stabilised. The Asian markets, especially the Chinese, saw prices tail off as traders started winding down for the Chinese new year. European and the US markets, too, may not see much activity in the coming week.

The past week also saw some positive developments on the mining front. But before we get into that, as promised, here is an update on the political events in South Africa, where there is talk of nationalising its mines:

News agency Bloomberg reports that the youth wing of South Africa's ruling African National Congress (ANC) has been in contact with Anglo American Plc about its proposal to nationalize the country's mines. Quoting a ANC Youth League leader Julius Malema, the report says the league is more than convinced that the nationalization of mines would "happen in our lifetime," Malema told reporters after a weekend meeting to discuss the proposal. Malema is a member of the ANC's policy-making national executive committee.

South Africa is the world's biggest producer of platinum, ferrochrome, manganese and vanadium and the third-biggest supplier of gold. But Anglo American, one of the biggest investors in the South African mining business, has said any move by the government to "impair" the industry would have "serious economic costs", the report said. A company spokesman could not confirm nor deny whether whether the company has held talks with the league on the policy proposals.

In another dispatch on February 2, Bloomberg quoted South African Mines Minister Susan Shabangu as saying, "It won't nationalize mines in my lifetime." The same report carries on to say that traders, analysts as well as those in the actual business of mining in SA have, as of now, not shown any signs of panic by the treats of nationalization, perceived to be less of a risk to mining companies in South Africa.

At Vanadium investing news, we feel that nationalisation has its own set of problems but then again, it is the right of every nation to decide/change its policies to suit its own interests.

Speaking of SA, miningweekly.com reports from Johannesburg that Swiss-based diversified miner Xstrata that produces ferrochrome in a joint venture with Merafe Resources in South Africa, has reported that production had decreased by 30 per cent in 2009 compared to the previous year as a result of the venture's curtailment of up to 80 per cent of production capacity in late 2008 and early 2009, in response to the poor market conditions.

Ferrovanadium volumes fell by 37 per cent in 2009 owing to the suspension of production at Rhovan project - Xstrata's integrated vanadium operation in South Africa - during the third quarter for extended maintenance. The operation returned to full production in mid-October.

Moving on to other news… the past week saw the publication and announcements of several reports relating to several assays and initial surveys, most of them positive, likely to have an impact on vanadium prices.

Energizer Resources Inc (formerly Uranium Star Corp) (OTCBB: URST) announced that it had completed and filed its compliance technical report (SEDAR and EDGAR) for the explored portion of its Green Giant Vanadium Project in Madagascar.

The report was prepared by PEG Mining Consultants and confirmed that the exploration programs completed in 2008 and 2009 had established that at least two large-scale vanadium deposits exist on the Green Giant Property and that the Property merits an aggressive resource definition exploration program consisting of exploratory and infill diamond drilling over vanadium-bearing zones.

The company's recently reported and favourable assay results confirmed that the Manga zone has a high-grade core that is open along strike and at depth, and had been defined over a strike length of 500 metres. The 2010 drill program was expected to commence in May at the end of rainy season, and will focus on expanding the Manga zone over a strike length of 3,000 metres.

Energizer Resources Inc is an exploration company with assets in Madagascar (Vanadium) and Northern Quebec (Uranium).

Southern Uranium (ASX:SNU) has reported positive drill results as it found an outcropping of vanadium mineralisation at Calvert Hills in the Northern Territory. The Calvert Hills Joint Venture Project under tenement EL24837 is situated 100km west of the Westmoreland uranium field and has similar geological and structural ingredients for shallow-covered unconformity-style uranium deposits.

Southern Uranium has identified prospective locations similar to the Westmoreland setting but under cover by integrating modern geophysical techniques.

As previously reported, a four hole drill program was completed under collaborative drill funding from the NT Government at the end of the September Quarter.

The positive drill results encouraged the prospecting of similar geophysically delineated areas, resulting in the discovery of the Vanadis vanadium prospect.

Southern Uranium Limited is a listed resources company focused on copper gold and uranium exploration within its Australian tenements.

Cardero Resource Corp , listed on the Toronto Stock Exchange (CDU), as also on other stock exchanges, is commencing drill programs on both, its Longnose Iron-Titanium deposit and TiTac Iron-Titanium-Vanadium deposit, located in north-eastern Minnesota, USA. Previous work by BHP Minerals, a precursor to BHP Billiton (the world's largest mining conglomerate), had estimated that the Longnose deposit contained 27.57 million tonnes at 21.3 per cent titanium dioxide (TiO2).

This historical resource estimate is considered relevant by the company, both for the purposes of the company's decision to initially acquire the property and to guide the company in formulating its resource definition and exploration program for the project. The current drill program will seek to verify the historical resources and includes re-sampling, re-analysis and an independent NI 43-101 resource calculation, which will be completed by SRK Consulting (Canada) Inc.

Parallel with this work, planned metallurgical work will build on work previously completed by Pickands-Mather, Hazen Research and the Natural Resources Research Institute (NRRI). Results are anticipated by mid-2010.

A statement issues by the company said Cardero's focus through 2010 will be to realise the considerable value it believes is locked in its remaining iron ore assets in the Marcona District of southern Peru, the Baja district of Mexico and in Minnesota, USA, while continuing to progress its base and precious metal exploration projects in Argentina and Mexico and aggressively seek out and potentially acquire new advanced stage projects.

According to Marketwire, Apella Resources Inc (TSX VENTURE: APA) has reported that a further 1000 metres of diamond drilling on the Iron-t project had commenced. This program is a follow-up due to the positive findings from the previous round of drilling, results of which were released December 15, 2009.

Quoting Patrick D O'Brien, ICD.D, chairman, the report said Apella's recent mineralized drill intersects at Iron-T were suggestive of a significantly enriched Vanadium-Iron-Titanium system.

The Bell River Complex which hosts the Iron-t may be compared to the Lac Dore layered igneous complex (in part owned by Apella) in the Chibougamau district of Quebec, some 250 kms east, and to the Bushveld layered complex of South Africa, the world's most significant source of Vanadium.

At the Iron-T the Vanadium rich horizons are well defined on the ground and aeromagnetic surveys by their highly magnetic susceptibilities. Apella anticipates that at the Iron-T near Matagami the potential is excellent to substantially exceed the known mineralization of the Lac Dore deposit at Chibougamau of which Apella also controls a considerable interest.

Apella was in the news last week for another reason too. The company has been accepted as an associate member of the vanadium specific organization - The Vanadium International Technical Committee (VANITECH), headquartered in Kent, UK. VANITEC is a technical and scientific committee which brings together representatives of companies involved in the mining, processing and manufacture of vanadium-containing products for use mainly in the metals and materials manufacturing and chemical industries, world-wide.

Its objective is to promote the use of vanadium bearing materials and thereby to increase the consumption of vanadium. There are 16 current members of VANITEC.

PGE gains momentum in India

2010-02-08T02:05:10Z

"There is enough scope for exploration of Platinum group elements (PGE) in the country due to their extensive utility in high technology applications and commercial use," said Dr V Balaram of National Geophysical Research Institute, Hyderabad on the penultimate day of four-day 6th International Dyke Conference (IDC), being organised by department of Geology, Banaras Hindu University on Saturday.

Referring to the PGE exploration studies in the country, Balaram said not much progress has been made due to non-availability of sufficient number of laboratories capable of precise estimation of PGE at their natural abundance levels and other related mineralogical studies. However, he maintained that due to growing demand and increasing applications of PGE including Rubidium, Osmium, Iridium and Platinum, their explorations have gained momentum in recent years.

Speaking that so far the PGE exploration has centred around Baula-Nuasahi layered complex in Orissa, Hanumalapur complex in Karnatka, Sittumpundi complex in Tamil Nadu, Bundelkhand craton along UP-MP border and Naga-Manipur hills, he added that recent studies have shown that Deccan Volcanic Province (DVP) are emerging as potential sources of PGE along with nickel (Ni) and copper (Cu).

There are enough evidences based on dyke research to suggest that Khetri lineament, Dharwad and Singhbhum craton along with equatorial Indian ocean offer scope for continuing research on magmatic Ni-Cu-PGE deposits in the country, he said dykes and dyke swarms consisting of ultramafic rocks have proven to be hosts of magmatic Cu-PGE sulphide deposits.

Earlier, presentations on basic dykes of granite greenstone belt of Vellore, petrology and geochemistry of metamorphosed basic intrusives from Chilka Lake granulites and other developments in peninsular India were discussed.

Black Fire Minerals reveals encouraging lithium rock chip geochemical results

2010-02-08T01:57:59Z

Perth-based diversified resources company Black Fire Minerals has announced that assay results from the rock chip geochemical sampling program at the Karibib Project in Namibia have been returned with very encouraging lithium and tantalum results.

A total of 51 samples from Rubicon and 36 samples from the Helikon Projects were collected from the historic open pits, stockpiles and waste dumps during late December 2009 with the aim of establishing the tenor of the lithium, tantalum, rubidium, beryllium and cesium mineralisation within the various portions of the extensively zoned pegmatite bodies.

Following the announcement, shares in the company jumped 18.2% to 13c.

Although the Company has searched widely for historic mining information, very limited data has been found regarding the actual lithium and associated metals grades returned from the extensively developed petalite – lepidolite – tantalite mineralisation and thus this rock chip geochemical data is an important step in the final planning of the upcoming drilling programs.

Rock chip assay results for a geochemical sampling program at the historic Rubicon and Helikon lithium pegmatite mines at the 100% owned Karibib Project have been returned with very encouraging lithium and tantalum results.

The average lithium assay for the 87 samples was 1.88% Li2O with 57 (65%) of the samples returning assays above 1.00% Li2O. The highest lithium assay returned was 7.18% Li2O from a sample taken at Helikon.

The average tantalum assay for the 86 samples, excluding the highest grade sample that returned 14.55% Ta, was 415ppm Ta with 36 (41%) of the samples returning assays above 100ppm Ta. The next highest tantalum assay returned was 1.83% Ta.

The assay results for rubidium, cesium, niobium and beryllium are also considered of interest with peaks of 1.83% Rb, 0.74% Cs, 26.87% Nb and 3.98% Be.

Commencement of the Company’s first drilling program at Rubicon and Helikon is scheduled for the first week of March 2010.

Managing Director Simon Rigby said the assay results for lithium, the key target metal at Karibib, were considered to be very encouraging with both petalite and lepidolite mineralisation carrying grades competitive with other lithium pegmatite deposits around the world.

"Importantly, the Karibib Project would appear to have the potential for additional “credit metals” and Black Fire intends to investigate the potential economic significance of these metals as part of the evaluation of the Karibib Project," Mr Rigby said.

"The Company’s efforts are now focused on the commencement of a drilling program at Karibib which is scheduled for the first week of March."

The Karibib Lithium Pegmatite Project comprises two granted and adjoining Exclusive Prospecting Licences covering 765km2 and located approximately 25km east-southeast of the town of Karibib and 120km northwest of Namibia’s capital, Windhoek.

Metals prices heading for the roof

2010-02-08T01:19:06Z

Speakers at the Mining Indaba in Cape Town this week seemed as one in warning of a near-term supply-demand squeeze and some solid price increases for a swathe of metals.
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They made the point that China and India will be central to minerals demand growth. And among the so-called rare-earth metals that are crucial to many of today's high-tech products, China is the leading producer and is curbing exports unless they are already processed into manufactured products. As consultant Jack Lifton saw it, stronger demand has not (and cannot) lead to greater production.

Many of the metals that are needed for items such as solar panels, super-conductors and jet engines are produced as by-products of lead, zinc, copper, manganese or aluminium mining. There is no chance of increasing production of indium, gallium, germanium, rhenium, thorium and tellurium from primary mines.

It is not the same for copper, the metal showing the second-highest price increase over the past year - lead was first and zinc third. These are metals that better reflect the state of demand in the real economy.

Chinese demand is growing and, there are supply constraints. New mines cannot be brought on stream at the flick of a switch. Iron ore is in much the same boat. Price rises will be far more restrained than they were a year or two ago.

Chinese factor behind up and down of gold

2010-02-08T01:11:24Z

Currently, the metal markets are correcting as most pundits are calling for a bubble collapse in all commodities. The prices of metals both precious and base moved up rapidly throughout 2009 resulting in rapid gains.

The market needed a healthy correction from these fantastic gains and late January has been the time for it possibly compounded by the Chinese New Year holidays beginning February 14, 2010. Rising stockpiles in the LME warehouses have also contributed to the correction in base metals.

As usual, the drop in metal prices is accompanied by a strong U.S. dollar as the speculative funds and investors divest themselves of commodities and stocks to buy U.S. dollars, a well-established market play that continues to reward the big speculators regardless of the fundamentals.

The current slide in commodities and stock markets was ignited by China's announcement on January 13, 2010 that it would tighten the banks' reserve requirements by ½ of a percentage point which is perceived as a sign of further monetary tightening creating fear that the Chinese economy will slow further cutting off global recovery. China's economy grew at only 6% in 2009 furthering the belief that China's growth is slowing. The basic fundamentals of supply and demand argue for China and India to continue their modernization and put further pressure on demand for metals. Those same fundamentals as well as the following list are the basis for our continuing emphasis on a 30 year bull market:

Iron production and sales continue to escalate as major producers such as Rio Tinto Ltd./LLC, BHP Billiton and Fortrescue Metals Group step up the world production of iron in 2010 and 2011. China now consumes over 50% of all iron production.

Steel demand and prices continue to strengthen.

China Investment Corp., a Sovereign wealth fund, has invested approximately $50 billion in mining as the $300 billion dollar fund moves out of the financial sector.

Other Sovereign funds are shifting portfolios away from financials to commodities and natural resources. Vast sums of 10's of billions of dollars are and will be invested in mining related activities.

Gold continues to be the first choice by wealthy individuals (and now funds) as a safe haven. Commodities, especially metal, are now beginning to attract these same investors.

New mines can take up to eight years to develop which will restrict the supply side.

The Western world appears to be intent on stifling the development of new mines rather than encouraging investment. In today's world, mining companies have proven to be good corporate citizens concerned about the environment, the creation of jobs, and adding to the wealth of their jurisdictions. To continue to stifle the advancement of mining in the free world only makes us vulnerable and dependent on more hostile countries that are building their minerals wealth.

China will become more aggressive in securing mineral resources off shore for their decades of modernization. India will soon become a serious competitor with China in this regard.

Idled mine capacity has now been reinstated with existing brownfield operation (especially in iron and manganese) substantially maximizing production.

Large LME stocks of metals work well for the major consumer China to mediate the rise and volatility of base metal prices, otherwise China could purchase those stockpiles with ease.

If we monitor and follow the lead that China is adopting there should be little doubt that China is concerned about future supply and taking steps to secure the metals it requires offshore.

2009 has been the best year for commodities since the early 1970's as the vastly oversold sector from precious, base and specialty metals rapidly appreciated in price reversing the fortunes of some of our largest mining giants around the world as well as focusing attention on the continuing demand by China for all metals.

Gold

Gold, the leader of the metals pack, recorded a record high of $1,226/oz. in 2009. 2010 should see a breakthrough of $1,500/oz. on its way to $2,000/oz. Eventually as the world turns to a new gold backed currency the price of gold will be pegged at much higher prices. The realization that gold is the safest haven in these economic times has finally crystallized and will underpin the gold market for years to come. China is again taking the lead not only in world gold production but consumption as well. China narrowly beat out India in household consumption at 432 tonnes versus 422 tonnes. Now that China encourages its citizens to invest in precious metals as well as central bank purchases it will be a driving force in the future price of gold.

More and more central banks are increasing their purchases of gold as western banks are selling less. The fundamentals of supply and demand have had demand overpowering supply and only central bank selling has filled this short fall. There will come a time when the only gold available for sale will be from producers with receding production and reserves, who will want to sell their gold assets and for what? ...Paper? Dehedging of gold also will put upward pressure on the gold price as the total world hedge book drops to 11.5 million ounces.

Financing

North American gold financings came close to $20 billion in 2009, not accounting for base and specialty metal financings. This is the tip of the iceberg when you think of huge amounts of cash from individuals, institutions, sovereign funds and now China's mandate for their resource companies to invest offshore, all to be utilized by metal companies in exploration, development and production.

Although the metal prices have been correcting for the past few weeks with the indication the bottom has been reached, on January 29, 2010 the prices are all up with the exception of molybdenum since my last letter dated August 5, 2009.

Rare earths metals

China has been cutting exports of rare earth metals for several years and the threat of further reductions in rare earths could compromise the growth of the green economy. The western world is on notice that their reliance on China is coming to an end. As China builds out its own economy and requires more and more metals including rare earths one must assume those days are not too distant when strategic metals will no longer be available for export.

Not that China is trying to squeeze the West, but will no longer have the capacity to meet their own needs. The US Government has addressed the situation by providing incentives for industry (Restart Bill) to locate and develop their own resources of rare metals. In the U.S. the time it takes to permit and construct new developments may not coincide with the closing of the door to export from China. This will create a desperate scenario for crucial sectors of our economic advancement.

Are rare earths the only segment which could become affected if China's need for metal continues to grow? There are other strategic metals that are controlled by China that should also raise alarm bells with the rest of the world and could affect our standard of living, progression of manufacturing, the military and economy as a whole.

China depends on the rest of the world for their supply of iron, manganese, copper and oil just to name a few where they have inadequate production. Some of the metals that China exports and controls as well as rare earths are electrolytic manganese and magnesium.

The Chinese production of electrolytic manganese metal (EMM) from dwindling low grade domestic resources of manganese with a production cost of approximately US$0.95/lb. to produce. China produces 97.44% of the worlds' supply of 2.5 billion lbs. per year. Electrolytic manganese production and demand have grown 26%/year for six years up until 2008. Outside of China the rest of the world utilizes approximately 350,000 T's (770 million lbs. per year). The world is almost totally dependent on China for their EMM requirements. EMM's greatest use is in upgrading alloys of steel 47%, aluminum industry 32% and electronics such as batteries 14%.

Magnesium - China controls 78% of the worlds' magnesium utilized in strengthening and weight reduction in fabricating steel.
Rare Earths - China controls the production of rare earth metals required in hybrid vehicles and numerous high tech applications.

The Rare Earth metal scarcity shows how quickly the world could be turned into turmoil. We should be concerned about this and the other critical aspects of strategic metals that one country monopolizes.

The prices of these metals will obviously go much higher either through price increases or higher export duties.

It is now time for governments to pre-empt rather than be reactive to the situation with rare earth metals and develop alternative sources of supply.

The three "M's"

Earlier I talked about the increasing demand for iron for steel fabrication. As steel production increases it will create a demand for specialty metals thereby positively affecting the prices of all strategic metals including the three "M's", Manganese, Magnesium and Molybdenum as well as cobalt, niobium, tungsten, vanadium and titanium.

Production and prices of the three "M's" are:

The general direction for all metals, precious, base and specialty will continue upward as more money than we have ever experienced chases metal commodities and metal stocks while production and reserves dwindle.

Rusnano approves magnesium hydroxide project

2010-02-08T01:09:52Z

The project's goal is to organize production of a flame retardant (fireproofing additive) - ananostructured magnesium hydroxide with modified surface - and value added products of bromide and magnesium chloride. The budget for the project is 3.1 billion rubles. RUSNANO will contribute 167 million rubles to owners' equity of the project company and provide up to 1.11 billion rubles in credit.

The project will design and construct an environmentally safe, economically effective plant for production of nanostructured magnesium hydroxide. The plant will have capacity to produce 25,000 tons of the chemical per year. The plant will work in production facilities belonging to Kaustik, a NIKOCHEM Group company, in the city of Volgograd. The scientific-production centre of Kaustik developed the technology that the new plant will use. As part of the project, an EPC contract will be concluded with Andritz AG (Austria), one of the world's largest engineering companies. Project realization will begin in the first quarter of 2010. Pilot production of magnesium hydroxide is scheduled to start in the third quarter of 2011. Full-scale production will begin in 2013. Customers for the plant's output will be both Russian and foreign companies.

"According to official statistics from the Ministry of the Russian Federation for Civil Defense, Emergencies and Elimination of Consequences of Natural Disasters, during 2008 there were approximately 200,000 fire in which more than 15,000 people lost their lives. Fires cause 12 billion rubles in damages and losses annually. Therefore, it is a priority to reduce the flammability of articles and lower the smoke and poisonous gases of burning polymers that are used in construction, electronics, and many other sectors. Flame retardants will lower the death toll: during a fire, as most deaths are caused by poisoning from toxic combustion. At present Russia lacks it own production of flame retardants. The entire amount of aluminium trihydrate and magnesium hydroxide consumed each year, 5,000-6,000 tons, is imported. The volume of flame retardants consumed in the country is growing at a rate of 10 percent to 20 percent per year," said Managing Director and Member of the Executive Board of RUSNANO Dionis Gordin. "Realization of the project will ensure that Russian producers of polymer compounds can obtain high-quality raw materials - ananostructured magnesium hydroxide. Part of the output will be sold as exports. Stricter norms from the European Commission on discharge of hydrogen chloride from wires and cables are going to promote the use of flame retardants based on magnesium hydroxide."

In 2008 the Russian market in flame retardants was 9.900 tons. Over the last three years the domestic flame-retardants market has displayed steady growth of 11 percent to 13 percent annually. Federal Law ¹FÇ-123, dated July 22, 2008, on ensuring fire safety and new GOST certification for construction work and the manufacturing of cable stiffen requirements for fireproof and non-toxic products. The law and regulations will stimulate growth in this market. Russia's flame-retardants market is currently almost 75 percent dependent on imported goods. Many forms of flame-retardants are not produced in the country: bromine-based flame retardants, high-quality aluminium trihydrate, magnesium hydroxide, and several phosphorated flame retardants.

The global market for flame retardants is expanding. In 2008 there were 1.15 million tons sold, and analysts expect sales in 2009, despite the economic turndown, to be at a similar level. They forecast that growth will begin in 2010 and that by 2015 the world's market for flame retardants will reach 1.55 million tons. The European Union and the United States are the primary producers and consumers of flame-retardants. They make up 50 percent of the market.

Nortec Minerals Corp.: Rock chip sample returns 69.8g/t gold from Seinajoki Project, Finland

2010-02-05T06:25:14Z

Nortec Minerals Corp. is pleased to announce the excellent results from rock chip samples taken from the Seinajoki Gold Project in December last year.

High grade gold mineralisation was encountered in two lines of rock chip samples taken from outcropping bedrock on the Sikakangas prospect. A 0.5m chip line returned 69.8g/t gold hosted in quartz veins within altered metavolcanic rocks (mica gneiss). A second sample taken 25m to the south, returned 21.1g/t gold also hosted in quartz veins within altered mica gneiss.

Ian F. Laurent, Nortec's Executive VP commented, "We are very excited at these results. We are looking forward to drill testing these targets. We have always believed that Seinajoki has the potential to become a multi-million ounce gold district."

Nortec conducted a reconnaissance surface sampling programme over several prospects identified within the 10,000 hectare claim reservation covering the Seinajoki Gold Project. A total of 29 rock chip samples were collected from the Sikakangas, Marttalanniemi, Kalliosalo and Kaatiala prospects during a field visit by Nortec. The samples collected were representative of the several styles of mineralisation already identified within the Seinajoki Project, including:

1. Native GOLD in dacitic to rhyodacitic metavolcanic rocks and graphitic schists, associated with native antimony, minor arsenopyrite and pyrrhotite;
2. Disseminated stratabound antimony-gold mineralization associated with shear zones in metasediments;
3. Native GOLD in quartz-tourmaline veins in metavolcanic rocks;
4. Antimony mineralization in pegmatites and metavolcanic rocks; and,
5. Tin, tungsten, lithium, tantalum, beryllium, niobium and other REE mineralization in pegmatite dykes.

Anomalous gold mineralisation (>0.2g/t) was also returned from rock chip samples at the Marttalanniemi and Kalliosalo prospects. Both prospects lie along a 5km long, northwest trending "Shear Zone". One rock chip sample from the pegmatite dyke at Kalliosalo returned lithium mineralisation (1.47% Li) and another rock chip sample from the southern part of Marttalanniemi returned elevated values (0.04%) in rare earth elements ("REE").

The Company has already begun staking claims in the Seinajoki district and will complete staking the most prospective areas before the end of February. The Company has begun discussions with drill contractors in Finland with the aim of commissioning an initial small exploration drill programme targeting these high grade gold zones identified on surface.

US ITC to conduct magnesium anti-dumping duty review

2010-02-04T01:34:05Z

The U.S. International Trade Commission (ITC) will conduct a five-year sunset review on anti-dumping duty orders on magnesium metal from China.

VSMPO to up titanium output by 10%

2010-02-04T00:50:35Z

Russia's VSMPO Avisma plans to increase output this year to 21,000 tonnes, up 10% from 2009.

Mr Mikhail Voyevodin CEO of VSMPO Avisma said that to reach this volume the producer of the metal, which is widely used in aircraft building, planned investments of RUB 4.5 billion.

The company, a supplier to plane makers Boeing and Airbus has not yet published production results for 2009. It had planned to produce 19,200 tonnes of titanium last year after cutting output to 26,600 tonnes in 2008. The company had to postpone to 2014 a major output expansion plan to 44,000 tonnes to 46,000 tonnes initially targeted for 2012 due to the financial crisis.

Bonanza gallium assays from Michelle property in Yukon

2010-02-04T00:48:10Z

Bonanza grade gallium assays are a welcome bonus when crews drill for zinc-lead-silver mineralization, notably at the Michelle property belonging to Zinccorp Resources of Vancouver. The gallium assay - 1,170 g/t - was also accompanied by 60.3 g/t Ge and 24.1 g/t Ir. Previous core assays had been as high as 22.71% Zn, 17.39% Pb, 510 g/t Ag and 253 ppm Ga.

The mineralization at the Michelle project is Mississippi Valley Type, according to the company. It occurs in Proterozoic age dolomitic sediments, but the mineralization appears to be structurally, rather than stratigraphically, controlled. It is hosted by upper Cambrian to lower Devonian carbonate rocks of the Bouvette formation. Fifteen separate zones along a 12-km belt have been identified.

Zinccorp's 2010 exploration program will include at least 1,500 metres of drilling to test two or more previously undrilled zones. Further prospecting and a gravity survey will be conducted.

Korean govt strikes lithium deal with Posco

2010-02-03T23:50:13Z

The South Korean government signed a deal Tuesday with leading steelmaker POSCO to cooperate in extracting lithium from seawater, in a bid to secure a stable source of the material used in batteries for electric cars, mobile phones and other personal devices, government officials said.

Under the deal, the government and POSCO are to invest a combined 30 billion won (US$26 million) in building a lithium-extracting plant with the aim of completing the commercialization of the material obtained from seawater by 2014, according to the Ministry of Land, Transport and Maritime Affairs.

They also hope to produce around 20,000-100,000 tons of lithium annually from 2015. The ministry said, however, that it has yet to decide where to locate the plant.

The deal comes as the amount of lithium that can be obtained on land is quickly being depleted. The ministry said that it had sought to extract lithium from seawater over the past years and succeeded in securing related core technologies in May.

In 2008, South Korea imported around 11,000 tons of lithium batteries and other related products worth about 660 billion won to meet local demand, according to the ministry.

Cardero updates project development strategy

2010-02-03T02:15:41Z

Cardero Resource Corp. is pleased to provide an update on its corporate strategy and key mineral projects following the recently completed sale of the Pampa de Pongo Iron Deposit in Peru for total gross proceeds of USD 100 million. Cardero is now focused on utilizing these substantial funds to maximize shareholder value through advancement of its key development and exploration projects in addition to potential major acquisitions.

The Company continues to advance its Pampa El Toro Iron Sands deposit in southern Peru as ongoing discussions and technical reviews with potential strategic partners progress. Strengthening iron ore markets have triggered an increased interest in this iron deposit that is strategically situated in close proximity to substantial infrastructure including highways, power, a deepwater port and an operating iron ore mine.

Given the Company's current working capital of approximately $93.5 million (prior to payment of the as-yet unquantified taxes in connection with the Pampa de Pongo sale) and significant marketable securities portfolio (current gross market value approximately $31 million), Cardero is also actively reviewing potential mineral project acquisitions. Advanced-stage projects in both the base and precious metals sectors are currently being evaluated with the impetus to identify assets that will contribute significantly to increasing the market value of the Company.

"With the recent sale of Pampa de Pongo for USD 100 million, the Company is now endowed with a strong treasury to put to work on behalf of its shareholders," stated Hendrik van Alphen, Cardero's President and Chief Executive Officer. "We are excited to have the significant funds available for our growth plans but will remain very selective and diligent in their utilization."

"Over the past few years Cardero has also excelled in an 'incubator' role for a number of junior exploration companies within the Cardero Group," continued Mr. van Alphen. "The Company's shareholdings in International Tower Hill Mines Ltd. (TSX: ITH), Trevali Resources Corp. (CNSX: TV), Dorato Resources Inc. (TSX-V: DRI) and Wealth Minerals Ltd. (TSX-V: WML) have all garnered significant returns. The Cardero Group model has earned significant investor and industry interest - and has emerged as a highly-qualified, multi-disciplinary team of mineral explorationists and technical personnel that can boast a very successful track record."

An exploration drill program is currently underway on the Company's Baja Iron Oxide-Copper-Gold project in Mexico and a follow-up drill program is also planned for the Organullo Gold project in Argentina. A resource definition drill program has recently been initiated on the Longnose Iron-Titanium Deposit, as well as an exploration drill program on the TiTac Iron-Titanium-Vanadium Deposit, both in Minnesota.

Ongoing exploration and development efforts will focus on the following key projects:

- Pampa El Toro Iron Sands, Peru - advancing a large, bulk-tonnage, potentially low-OPEX iron-titanium-vanadium deposit. An initial independent resource estimate completed in mid-2009 indicates a substantial resource within only a fraction of the total concession area. Multi-phase melting tests have successfully been completed (producing pig iron) on iron ore concentrates produced from pilot plant operations at Pampa El Toro. Cardero is in preliminary discussions with major iron and steel groups and is considering both a strategic joint venture to production scenario and/or a potential sale.

- Iron-Titanium Deposits, Minnesota - The Company is undertaking a drill program to generate an independent NI 43-101 compliant resource estimate at the Longnose Deposit, Minnesota, USA. Previous work by BHP stated that Longnose is "the largest, highest-grade resource of ilmenite (FeTiO3) in North America". The independent resource estimate is anticipated in mid-2010. The Company is also carrying out a drill program on the TiTac Iron-Titanium-Vanadium project in Minnesota.

- Organullo Gold Project, Argentina - targeting multi-million ounce gold potential. Initial drill testing of the Organullo gold project is planned for Q1-2010. The Company believes that historic exploration failed to adequately test this large, pervasive gold-bearing system and that it has the potential to host a large bulk tonnage gold deposit. Recent geophysical surveys by the Company, which generated significant anomalies, substantiate this model.

- Baja Iron Oxide-Copper-Gold Belt - an aggressive drilling program is underway following-up previous drill intercepts, highlights of which include 260 metres @ 0.24% copper (within which 47 metres returned 0.74% copper and high grade replacement mineralization of 6.5 metres of 4% copper and 0.4 g/t gold).

Iron - Titanium - Vanadium Portfolio

Pampa El Toro Iron Sands Deposit - Peru

The initial independent NI 43-101 compliant resource estimate of the dune-field hosted Pampa El Toro Iron Sands Deposit by SRK Consulting (South Africa) (Pty) Ltd. (SRK) has identified an indicated resource of 241,831,000 tonnes grading 6.67% Fe2O3, 0.72% TiO2 and 172 ppm vanadium plus an additional inferred resource of 629,881,000 tonnes at 6.48% Fe2O3, 0.70% TiO2 and 166 ppm vanadium within only approximately 15% of the total 10,300-hectare concession area. SRK calculated the resource to a nominal depth of 30 metres as a conceptual mining depth to provide a 30-year life-of-mine resource. Drill testing of the dune sands has been undertaken to depths of up to 60 metres in certain drill holes, which have returned similar grades. The September, 2009 SRK report is available in full on SEDAR.

Metallurgical test-work undertaken at the US Department of Energy's National Energy Technology Laboratory's 'state-of-the-art' laboratory and testing facilities in Oregon, USA has successfully produced high-quality Pig Iron at a bench-scale level and according to design. Ongoing metallurgical testing at the Colorado School of Mines during 2010 is ascertaining the recoverability of vanadium and titanium from the smelter slag produced during the melting tests.

The Company continues preliminary discussions with several major iron and steel groups with respect to the Iron Sands project, although there can be no assurance that such discussions will lead to an agreement for the sale or joint venture of the project nor can the Company estimate a time-line for any such agreement to be reached. The Company believes that the combination of potentially low CAPEX and OPEX and a quick time to market - offering the potential opportunity to generate significant medium-term cash flow - make the projected economics of the project attractive. Accordingly, the Company will evaluate very carefully any sale or JV proposal with a view to determining the best way to create and enhance long-term shareholder value.

Iron-Titanium-Vanadium Deposits - Minnesota, USA

Cardero is commencing drill programs on both its Longnose Iron-Titanium deposit and TiTac Iron-Titanium-Vanadium deposit, located in north-eastern Minnesota, USA. Previous work by BHP Minerals, a precursor to BHP Billiton (the world's largest mining conglomerate), estimated the Longnose deposit contained 27.57 million tonnes at 21.3% titanium dioxide (TiO2), which it classified as a "probable reserve". BHP also estimated a global resource for the deposit of approximately 45.36 million tonnes, and noted that this remains open. During this period BHP stated that Longnose is "the largest known resource (grading over 46% FeTiO3) of ilmenite in North America with over 27 million tonnes identified".

This historical resource estimate is considered relevant by the Company, both for the purposes of the Company's decision to initially acquire the property and to guide the Company in formulating its resource definition and exploration program for the project. The current drill program will seek to verify the historical resources and includes re-sampling, re-analysis and an independent NI 43-101 resource calculation, which will be completed by SRK Consulting (Canada) Inc. In parallel with this work, planned metallurgical work will build on work previously completed by Pickands-Mather, Hazen Research and the Natural Resources Research Institute (NRRI). Results are anticipated by mid-2010.

The Company cautions that both the BHP report and the included resource estimate were prepared before the introduction of NI 43-101, and are therefore historical in nature and the Company is not treating such resources as a current resource under NI 43-101. Investors are further cautioned that a qualified person has not yet completed sufficient work to be able to verify the historical resources, and therefore they should not be relied upon.

Gold Projects

Organullo Bulk Tonnage Gold Prospect - Argentina

The 100% owned 6,100-hectare Organullo property is located in Salta Province, NW Argentina. The Company is evaluating a large gold-endowed system where the geological features share similarities with the deeper, structurally controlled, epithermal gold mineralization at El Indio in Chile. The Company believes historic exploration failed to adequately test this large, pervasive gold-bearing system and it has the potential to host a large bulk-tonnage gold (with accessory copper and bismuth) deposit.

Earliest recorded work in the area of the Organullo property comes from reports of small-scale production from the Julio Verne mine during the 1930's. Mining activity focussed on two high-grade, sub-parallel veins with concentrates reported to average between 10-20 g/t gold, 8.2% copper and 12.5% bismuth. Most recently, in 1994-1995, Triton Mining Corp. and Northern Orion Explorations, Ltd. jointly conducted a mapping and prospecting campaign and completed a 17-hole, 3,295-metre reverse circulation (RC) drill program. This was followed with a 6-hole diamond drill program in 1997 and an additional 12-hole RC drill program in 1999 by Northern Orion. Despite the aggressive historic drilling, it appears that most of those holes were oriented parallel to mineralized structures and consequently either missed completely the main target structure identified at the Julio Verne mine or provided intersections that are not representative. In addition, recoveries were very poor, on the order of 20-30%, due to loss of potentially mineralized clay rich zones and high groundwater saturation.

Potential remains open at depth below the Julio Verne workings, along strike of known mineralization and along postulated parallel structures that remain untested.

The Company successfully completed its Phase 1 exploration program in mid-December 2009, undertaking components of mapping, soil and rock sampling, and ground geophysics. Initial drill testing is scheduled to occur in late Q1-2010.

Textures, geochemistry, host rocks and alteration assemblages are consistent with the high-sulphidation styles of epithermal mineralization that host prolific gold mineralization elsewhere in the central Andes. Detailed structural and alteration surveys indicate significant hydrothermal fluid activity on the property associated with epithermal mineralization. Drilling will test the potential for large Bajo de la Alumbrera or El Salvador-style porphyry deposits at depth.

Copper - Gold Projects

Baja Iron Oxide-Copper-Gold (IOCG) Belt

Recent structural re-interpretation and analysis has successfully developed multiple bulk-tonnage copper-gold targets on the Company's Baja Iron Oxide-Copper-Gold project. Previous exploration by Anglo American and Cardero successfully intersected locally productive and large pervasive IOCG systems at the Picale and San Fernando prospects in addition to identifying several other large copper bearing IOCG targets. Technical reports with respect to the results of previous work by Anglo and the Company at the Baja IOCG project are available on SEDAR.

Drill highlights ranged from 260 to 280 metres @ 0.20% to 0.24% copper & 19% iron within which higher-grade intervals occur, ranging from 31 to 47 metres at 0.96% to 0.74% copper at San Fernando. At Picale previous exploration drilling by Cardero intersected high-grade mineralization in a flat lying replacement body - highlights include 6.5 metres @ 4% copper and 0.4 g/t gold. Current exploration drilling is testing the test bulk tonnage copper targets at the San Fernando, San Jose and Santa Maria prospects.

MagIndustries signs potash framework agreement in China

2010-02-02T04:55:35Z

Toronto-based MagIndustries Corp. has signed a framework agreement with a Beijing-headquartered construction company, which is negotiating to build the proposed Mengo potash project in western Africa.

The agreement provides for COMPLANT to be appointed contractor for the project and for it to source a construction loan of up to US$1.2 billion, repayable over 10 years or more.

COMPLANT would have the option to acquire 50.1 per cent of the project, if the two companies reach a definitive agreement.

If the Chinese company exercises its option, MagIndustries would see its ownership stake fall to 39.9 per cent from 90 per cent while the Republic of Congo would continue to own 10 per cent.

COMPLANT was formed in 1959 to build complete manufacturing plants in China and abroad. It's now a publicly traded company controlled by China's State Development & Investment Corp.

Baobab Resources intersects broad mineralisation zones at Tete iron-vanadium project

2010-02-02T04:16:11Z

Baobab Resources (AIM: BAO) said two of three diamond drill holes completed prior to the close of the 2009 field season at the South Zone prospect of the Tete magnetite-ilmenite project in Mozambique intersected broad zones of cumulate-style mineralisation similar to that of the 47.7 Mt (million tonnes) inferred resource at Chitongue Grande and massive magnetite-ilmenite intrusive dykes.

Significant concentrate intercepts from the TDH0016 hole included 14.7 metres grading 60.0% Fe (iron), 0.65% V2O5 (vanadium), 9.05%TiO2 (titanium) from 24.5 metres with a 28.3% mass recovery, 27.0 metres at 61.1% Fe, 0.72% V2O5, 7.15% TiO2 from 117.5 metres with a 22.7% mass recovery and 7.5 metres at 57.1% Fe, 0.49% V2O5, 14.57% TiO2 from 179.0 metres with a 59.8% mass recovery.

Concentrate intercepts from the TDH0018 hole included 55.0 metres at 62.9% Fe, 0.73% V2O5, 5.07% TiO2 from 25.0 metres with a23.3% mass recovery.

Results from the third hole, TDH0017, will become available later this month, while the continuation of the 12,000 metre scout drilling campaign at Massamba Group to assess the South Zone and Chimbala prospect areas is on schedule for March 2010.

"The results from the maiden drilling programme demonstrate the potential for substantial resources underlying the South Zone prospect and importantly, the regional continuity of mineralisation of the Massamba Group," said managing director of Baobab Ben James.

The project contains two areas of magnetite-ilmenite mineralisation, the Singore area to the south and the Massamba Group in the north, where the group has been focusing its exploration activities after their commencement in mid 2008. Independent scoping metallurgical studies and financial modelling have indicated positive project economics in the production of high quality magnetite (iron and vanadium) and ilmenite (titanium) concentrate commodities.

Baobab formed a strategic partnership with the International Finance Corporation in January 2009 whereby IFC earned a 15 percent direct interest in the Tete project.

Potash is a fertile ground to buy into

2010-01-31T22:39:00Z

Potash is a generic term for water-soluble compounds of the element potassium. They are used as agricultural fertilisers as they make plants hardier and increase crop yields.

Prices soared in 2007 and 2008, quadrupling to $1,000 a tonne. The gains were driven by expectations of strong demand from emerging markets with growing and gentrifying populations and the rush to biofuels as an alternative to oil.

Since then, producers have been cutting back and prices have been tumbling. However, it appears a bottom has been reached and corporate activity in the sector is increasing, with mining giants BHP Billiton and Vale announcing new acquisitions last week.

China settling a contract on January 5 also set a floor under the price. The country agreed to buy potash from Belarusian Potash Co at $350 a tonne. On January 17 another deal was stuck with Israel Chemicals at $355 a tonne. China is the world's largest buyer of potash, so this level is being regarded as a bottom.

China needs lots of fertiliser not only because of its massive population, but because of the quality of its agricultural land. It is very poor. China has about one fifth of the world's population but about 7pc of the world's arable land. Significant tranches of the land it does have are polluted with heavy metals and desertification is also a real problem.

As crop prices have been weak and as the economy seized up, farmers have not been making potash purchases. Indeed, the Chinese contracts announced this month should have been made months ago. This means that all parts of the supply chain are running out of stocks. When major planting in the northern hemisphere gets under way in April prices should start to recover. Many farmers have not applied fertiliser for a couple of years and soils need revitalising.

These prospects prompted William Doyle, chief executive of Canada's Potash Corp of Saskatchewan, to say last week that Belarusian Potash and Israel Chemicals should have negotiated a better deal with their Chinese clients.

However, Mr Doyle could have been trying to talk his own book.

Potash Corp supplies about 20pc of the world's potash. Shares in his company were hammered last week after the group unveiled a 70pc drop in quarterly profits and gave future profit guidance that was well below market expectations.

However, in the conference call after the announcement, Mr Doyle said the group was seeing an increase in North American potash demand. In the first three weeks of January, Potash Corp sold more potash in North America than it did in the first eight months of 2009.

Also on Thursday, BHP Billiton unveiled a major potash acquisition. The company bought Athabasca Potash Corp for C$341m (£200m). This is a neat purchase because it is adjacent to BHP's Jansen potash development in Saskatchewan, to which BHP recently pledged $240m (£150m) of funds.

Jansen, which could take up to $10bn to develop, is slated to start production in about five years. The project will have capacity
of approximately 8m tonnes a year - the same as current production from Potash Corp.

BHP is not the only mining group wanting to get into the agricultural market.

Also last week, Brazilian group Vale agreed to buy the South American fertiliser assets of Bunge, a US commodity supply chain company, for $3.8bn. It then announced the purchase of a 16pc stake in Fertilizantes Fosfatados of Brazil.

The moves by BHP and Vale certainly makes sense. China could consume as much as 26m tonnes of the fertiliser each year within the next 15 years, according to a forecast from the International Plant Nutrition Institute. Potash Corp forecasts China will consume 8m to 9m tonnes in 2010.

Demand for food in the rest of the world is also going to jump, so increasing crop yields is important.

The global population is expected to soar to 9.1bn people in 2050 from 6.8bn now, according to the United Nations. So, BHP and Vale's diversification into potash looks like a smart move. The industry is at a bottom - Morgan Stanley expects demand to jump 50pc in 2010 - and there is a long-term bull case for the agricultural sector.

Potash is one of the few commodities where the price is yet to recover. It appears to be at an inflexion point and the big boys want to get in on the act. All of this means that now looks like a good time to get back into the pure fertiliser producers, before the recovery takes hold.

Base metals take a hammering

Power demand is up 30pc amid massive industrial activity and fiscal policy is consequently tightening in China. All this is bad news for base metals, with fears growing that the Asian powerhouse's economy is overheating.

It was a bad sign that Russian aluminium giant Rusal's shares lost more than 10pc in their first day of trading in Hong Kong.

And by the end of this week, zinc and lead had fallen by 10pc, aluminium was off 7pc, and tin had dropped 5pc. Add to this the fact that global metal inventories are looking very well stocked.

"We continue to see a massive downside risk of price correction," said Commerzbank analysts.

Oil

The US economy might be powering ahead with 5.7pc growth in the last quarter, but why hasn't demand for oil returned with the emergence from recession?

Prices bounced down to $73 per barrel, as oil companies warned that energy consumption is not ticking up as expected - evident in the dire performance of their refining businesses. Economists took the opportunity to warn that the unresponsive oil price could be a sign of sluggish underlying recovery.

Allegheny's net down in 4Q

2010-01-28T08:41:08Z

Allegheny Technologies Incorporated recorded a net income of $37.8 million or 36 cents in the fourth quarter of 2009, down significantly from last year's net income of $110.9 million or $1.15 per share. Reported earnings, however, exceeded the Zacks Consensus Estimate of 20 cents and the management's guidance range of 20 cents to 25 cents. Earnings of $48.7 million or 49 cents for the full year 2009 were also ahead of the Zacks Consensus Estimate of 28 cents.

Revenues declined 27% year over year to $815.7 million in the quarter, representing lower shipments and raw material surcharges across all major segments.

High-Performance Metals

Sales in the segment declined 30% to $312.4 million on a 29% decline in shipments of titanium and titanium alloys and nickel-based and specialty alloys. The fall was primarily due to a lower demand from the commercial aerospace market. Shipments of exotic alloys improved 9%, primarily due to growing demand in the nuclear energy market.

Average selling prices declined 21% for titanium and titanium alloys and 11% for nickel-based and specialty alloys. Average selling prices for exotic alloys, however, increased 8% due to an increased demand for certain products and a favorable product mix.

Flat-Rolled Products

Sales in the segment were down 22% year over year to $438.5 million. Shipments of standard stainless products (sheet and plate) increased 24% while total high-value product shipments decreased 14%. Average transaction prices for all products, which include surcharges, were 25% lower due primarily to significantly reduced raw material surcharges.

Engineered Products

Sales of $64.8 million in this segment were 35% lower than the previous year. Demand for Allegheny's tungsten and tungsten carbide products, forged products and cast products remained weak while demand for its precision finishing business improved.

Allegheny has achieved gross cost reductions of over $173 million in 2009, exceeding its cost reduction target of $150 million. Cash in hand was about $709 million at the end of the quarter, and net debt to total capitalization was 15.3%.

Allegheny's new titanium and superalloy forging facility in North Carolina became operational in 2009. With the acquisition of assets worth $40.95 million from the New York-based Crucible Compaction Metals and Crucible Research, Allegheny has forayed into advanced powder metal products.

Allegheny expects a gradual and steady improvement in most of its global markets in 2010. The company plans to improve its cost structure further and targets cost savings of $100 million in 2010. We believe Allegheny's solid balance sheet, limited debt maturity and cost reduction efforts position it much better than in the previous downturns. Its growth projects will give it increased leverage in the next upturn.

IC Potash Corp announces tendering of contracts for its Ochoa potash project in New Mexico

2010-01-27T20:55:20Z

TORONTO, Jan. 26 /CNW/ - IC Potash Corp. ("ICP"or the "Company") (TSXV: ICP) announced today that the Company has commenced the tendering of contracts for the New Mexico Ochoa potash project pre-feasibility study, scheduled to commence by March 2010.

"This pre-feasibility study is an important milestone for ICP," said Mr. Sidney Himmel, President and CEO of ICP. "It is a critical element in our strategy as ICP strives to become one of the world's lowest cost producers of Sulphate of Potash. It will enable us to determine the lowest cost mining and processing methods to achieve our goals and will provide us with valuable market entry information."

Results to date from the exploration program are consistent with the Preliminary Economic Assessment published as part of the National Instrument 43-101 Compliant technical report filed on SEDAR, regarding the economic potential of the Ochoa Project polyhalite resource.

While MOP has the largest potash market share at present, it is not the most desirable source of potassium crop nutrient due to its high chloride content. SOP contains no chloride. SOP contains, in addition to potassium, sulphate which is one of the five most important plant nutrients. As such SOP has very strong demand from farmers in the production of fruits, vegetables, horticultural plants, tobacco and many other non-row crops. Many world agricultural soils are becoming salty due to atmospheric conditions and aridity. This is enhancing the demand for SOP because Sulphate of Potash has a lower salinity index than MOP.

About Intercontinental Potash Corp

ICP is developing its Ochoa New Mexico property with the primary purpose of using polyhalite as feedstock to produce Sulphate of Potash. Sulphate of Potash, "SOP" or Potassium Sulphate, is premium priced potash. The market for SOP is approximately 4 million tonnes per year. SOP is used as a significant alternative fertilizer to sylvite (Muriate of Potash or MOP) for agricultural products such as fruits, vegetables, tobacco, potatoes, and horticultural plants. SOP has low "salinity" compared to MOP, and therefore is also used in various saline soils in the world, which are found for example in China, India, the Mediterranean, and the United States. Polyhalite may also be developed as a slow release multi-nutrient fertilizer which contains the plant macronutrients Potassium, Sulphate, Magnesium and Calcium.

New nickel-cobalt resource upgrade boost for Metallica Minerals Nornico project

2010-01-27T20:48:46Z

Metallica Minerals Ltd (ASX:MLM) is pleased to announce that an updated independent resource estimate has been completed for the Kokomo Nickel - Cobalt - Scandium Laterite deposit, which is located 40 km north of the Township of Greenvale in North Queensland.

The combined Measured, Indicated and Inferred Mineral Resource for the entire Kokomo Ni - Co - Sc laterite project now stands at 16.3 Mt @ 0.67% Ni and 0.12% Co (using a 0.70% NiEq cut-off) this is an increase of 4.1 Mt from the 2008 resource estimate which had similar grades with a major increase in the Measured and Indicated categories, which have increased to 13 Mt (up from 5.2 Mt).

The scandium resource within the Kokomo Laterite deposit is subject to a Joint Venture (JV) agreement with Straits Resources Exploration Limited (ASX:SRL), under the terms of the JV all scandium resources are to be mined or stockpiled separately and kept for later processing by the Scandium JV. Laterite resources are classified as either Ni-Co ore or Sc ore under a formula laid out under the terms of the Scandium JV agreement. As a result of this the total Kokomo resource is separated into two mutually exclusive parts.

The Scandium resource as defined by the JV is currently owned 80% by Metallica and 20% by Straits. The Scandium resource does contain some isolated zones of higher grade Ni-Co resource excluded from the Ni-Co resource.

The Ni-Co and scandium resources are near surface (<50 m depth) and are appropriate for a selective open pit mining scenario studies; however the resources do not account for mining dilution.

The resource was completed using data from a total of 1,058 drill holes comprising 26,384 individual assays. The bulk of the deposit has now been drilled out on a nominal 50 m (North-South) by 40 m (East-West) grid that is sufficient to classify the resource as predominantly Indicated. Where the drilling has been completed on an approximate 25 m (North-South) by a 20 m (East-West) grid the resource has been classified as Measured.

Resource Estimate Methodology

Ordinary Kriging (OK) for 10 m by 10 m by 1 m blocks was carried out in the mineralised zones using unfolding techniques to represent the paleo-laterite surfaces between drill holes, the paleo laterite surfaces were wire-framed from sectional interpretations of the considered logged geology and nickel, cobalt, iron, magnesium and manganese assays. A nominal (0.30% Ni only) mineralised envelope was used to constrain the laterite mineralisation and grade estimates using a hard boundary.

The mineralised wireframe was then filled with 10m by 10m by 1m blocks, with the grades of the various elements estimated by ordinary kriging using a three pass search strategy and a maximum of 3 composites selected from any one drill hole.

Mineralisation was extrapolated a maximum of 25 m from drill hole intercepts, depending on supporting information.

Three areas of the Kokomo deposit have been subjected to close spaced drilling which have resulted in Measured Resources, these areas are referred to as Wild Honey (scandium rich zone), Mona (nickel-cobalt rich zone) and Blueberry (narrow nickel-cobalt rich zone.