LATIN RESOURCES LIMITED ACN: 131 405 144

Level 1, 173 Mounts Bay Road Perth Western Australia 6000 P 08 9485 0601 F 08 9321 6666 E [email protected]

16 August 2012 MINERALOGY UPDATE FOR THE GUADALUPITO IRON AND SANDS DEPOSIT, NORTHERN PERU.

Highlights

 The Heavy Mineral (HM) Assemblage (>S.G. 2.85) of the above water table portion of both the “Heldmaier” and “Tres Chosas” JORC Inferred Resource Estimates is very consistent and is dominated by “Magnetite”1 (26%) and Andalusite (25%), with ancillary presence of “ ” including , , Leucoxene and (4.4%), “Garnets”2 (1.7%), Apatite (0.6%), and Zircon (0.2%).

 The HM Assemblage (>S.G. 2.85) of the below water table portion of the southern half of the “Heldmaier” resource is similar, being dominated by “Magnetite”1 (21%) and Andalusite (17%), with ancillary presence of “Titanium minerals” including Ilmenite, Rutile, Leucoxene and Titanite (4.0%), “Garnets”3 (1.2%), Apatite (1.1%) and Zircon (0.3%).

 The two JORC Inferred Resource areas cover a strike length of 15 km parallel with the coastline and between 1 and 2 km wide. The above water table portion of both areas totals 84Mt @ 8.0% HM for a total of 6.7Mt of HM (>S.G. 2.96), and the below water table portion of both areas totals 308Mt @ 3.5% HM for a total of 10.8Mt of HM (>S.G. 2.96) (reported 06 August 2012).

 Magnetite concentrates obtained from 15 Heavy Mineral composites representing the above water table portion of the “Heldmaier” JORC Inferred Resource Area averaged 62.0% Fe in the range 59.4% to 63.6% which is high compared with other iron sands projects around the world (55% - 58%). The , Silica, Magnesium, Manganese, Alumina and Phosphorus levels are also well below those contaminant levels of comparable projects. Recovery relative to reported average “Magnetite”1 content from QEMSCAN on equivalent composites was 70%.

 Separation test work using pilot plant methodology by CPG-Mineral Technologies on the bulk sample composite representing above water portion of the southern half of the “Heldmaier” resource area also produced a magnetite concentrate grading 61.8% Fe with similar low levels of contaminants.

 The upgrading of an Andalusite concentrate is currently underway and initial indications from an independent marketing report by an Andalusite expert concur that there is a good probability that a high purity, marketable product could be produced from Guadalupito.

 Given the relatively high content of Iron (Fe) and low content of Titanium and other impurities, Guadalupito Magnetite should attract a premium over other Titanomagnetite sands in the market which generally sell at a discount to Pilbara Fines (61.5% Fe) recently ranging from US$125-$US135 per tonne in Chinese ports.

 Indicative price range for Andalusite between US$350/t and US$450/t, world’s largest producer Imery’s predicting continued growth in demand and price rises.

1 “Magnetite” is the QEMSCAN determined Combined Iron Oxides which includes Magnetite, Hematite and Fe-Oxyhydroxides which are dominantly present as part of Magnetite particles as intergrowths. 2 “Garnets” is the sum of all QEMSCAN determined Almandine, Grossular and Andradite. 1

Latin Resources Limited (LRS.ASX) is pleased to announce results from mineralogical studies undertaken on bulk composite samples and Heavy Mineral (HM) composites that are representative of the “Heldmaier” and “Tres Chosas” JORC Inferred Resource Estimate areas (A detailed summary of the results appears in Appendix 1 and 2). Of significance is that Latin prepared bulk samples for mineralogy and process test work using large numbers of samples from within the resource areas rather than relying on a “single point” bulk sample, making results much more representative of the overall material that would potentially be mined. Magnetite and Andalusite dominate the Heavy Mineral (HM) assemblage associated with the above water table portion of the “Heldmaier” and “Tres Chosas” resource areas constituting 26% and 25% of the HM respectively. A suite of Titanium minerals (Ilmenite, Rutile, Leucoxene and Titanite) make up an average 4.4%, with accessory minerals Zircon, Garnets and Apatite all with some potentially viable commercial significance to be determined by further metallurgical test work. The Heavy Mineral assemblage derived from the bulk composite that comprises samples from below the water table in the southern half of the “Heldmaier” resource area contained similar, but slightly lower proportions of the same minerals, although the composite includes samples to 17 m depth, while the resource averages 12 m depth, and thus includes some HM from material excluded from the resource by the 1% HM cut-off grade. In work undertaken to date, Latin has been able to confirm that a high Iron (62% Fe) and relatively low

Titanium (less than 4% TiO2) magnetite product can be produced from pilot plant style processing on bulk sample composites from Guadalupito, and has demonstrated that the laboratory processing of Heavy Mineral (HM) composites produce similar results. Relatively low levels of Titanium and other impurities is a function of the high level of natural liberation of Magnetite at Guadalupito and should allow for a premium price over that of other Titanomagnetite sands in the market. Work on producing a high purity Andalusite concentrate is nearing completion, and to date all indications are that such a concentrate should have impurities well below even the lower limits of Andalusite sold in existing markets which in turn promises to open up a range of favourable alternatives for the sale of an Andalusite concentrate from Guadalupito. Andalusite products are currently sold at between US$350 and US$450 per tonne into a range of markets. Evaluation of the production of Titanium mineral and other concentrates including Zircon is ongoing, as is the evaluation of gold recovery, all of which are expected to add further value streams to an eventual operation at Guadalupito. A brief description of the uses of the heavy minerals found at Guadalupito and their respective markets appears in Appendix 3. Latin’s Managing Director, Mr Chris Gale commented “We are very pleased with the advance of mineralogical test work at Guadalupito with these results aiding the valuation of our already considerable resource base at the project.” He went on to say, “As Guadalupito continues to grow the Company will be focussing more attention on mineralogical and process test work to prepare sample products for direct market evaluation which will in turn to allow for upgrading of inferred resources to higher confidence categories and allow us to better value this considerable asset”. In conclusion Mr Gale said “With these encouraging results from within our JORC inferred resource areas, we are very excited about the new Los Conchales area that is returning higher grades of HM to depths of over 40 metres.”

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For further information please contact:

Australia United Kingdom United States

Chris Gale finnCap (Broker) Allen & Caron Managing Director Ben Thompson Rudy Barrio Latin Resources Limited Elizabeth Johnson +1 212 691 8087 +61 8 9485 0601 +44 20 7220 0500

David Tasker PPR +61 8 9388 0944

About Latin Resources

Latin Resources Limited is a mineral exploration company focused on creating shareholder wealth through the identification and definition of mineral resources in Latin America, with a specific focus on Peru. The company has a portfolio of projects in Peru and is actively progressing its Guadalupito Iron and Heavy Mineral Sands Project and the Ilo Iron Projects.

Competent person statement

The information in this report that relates to Geological and Geochemical Data, Exploration Results, Mineral Resources and any Conceptual Exploration Target is based on information compiled by Mr Andrew Bristow, a full time employee of Latin Resources Limited’s Peruvian subsidiary. Mr Bristow is a member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralization and the type of deposit under consideration to qualify as a Competent Person as defined in the December 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr Bristow consents to the inclusion in this report of the matters based on his information in the form and context in which they appear.

[email protected]

www.latinresources.com

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APPENDIX 1 – SUMMARY OF MINERALOGICAL STUDIES The Composites A series of detailed mineralogical studies were made on bulk composite samples and Heavy Mineral (HM) composites prepared by Latin and CERTIMIN laboratories in Lima that were representative of the “Heldmaier” and “Tres Chosas” JORC Inferred Resource Estimate areas (Table 1) and Mapped in Appendix 2). Of significance is that Latin prepared bulk samples for mineralogy and process test work by compositing, in an appropriately weighted manner, large numbers of samples from within the resource areas rather than relying on a “single point” bulk sample, making results much more representative of the overall material that would potentially be mined. Table 1 – Number of Samples making up each composite sample subject of this report. Representing Shafts/Drill Number of Depth Weight of HM Holes: samples range of composite (S.G.>2.96) Sample composited samples in situ (%)1 Heldmaier Shaft Sth A SH-001 to SH-018 64 0-4.0m 100 kg 4.3% LR-C001.B SH-001 to SH-003 11 0-3.7m 138 g 3.2% LR-C002 B SH-004 to SH-005 7 0-3.7m 84 g 8.1% LR-C003 B SH-007 to SH-009 11 0-3.9m 129 g 2.2% LR-C004 B SH-010 3 0-2.4m 42 g 19.6% LR-C005 B SH-011 to SH-012 7 0-3.9m 74 g 3.6% LR-C006 B SH-014 to SH-016 11 0-4.0m 112 g 3.4% LR-C007 B SH-017 to SH-018 7 0-4.0m 67 g 4.6% Heldmaier Shaft Nth C SH-019 to SH-035 50 0-4.0m 500 kg 6.9% LR-C008 B SH-019 to SH-020 8 0-4.0m 96 g 4.7% LR-C009 B SH-021 to SH-022 5 0-3.3m 68 g 8.0% LR-C010 B SH-024 to SH-025 6 0-4.0m 67 g 4.3% LR-C011 B SH-026 to SH-027 5 0-3.2m 42 g 3.6% LR-C012 B SH-029 to SH-030 5 0-4.0m 66 g 4.7% LR-C013 B SH-031 4 0-4.0m 48 g 12.4% LR-C014 B SH-032 to SH-033 5 0-3.5m 63 g 5.5% LR-C015 B SH-034 2 0-1.5m 47 g 39.4% Tres Chosas Shaft Sth C SH-046 to SH-061 30 0-2.0m 250 kg 10.5% Tres Chosas Shaft Nth C SH-062 to SH-077 37 0-3.3m 250 kg 10.2% Heldmaier Drill Sth A GUA-BL-001 to GUA-BL-018 185 4m-17m 100 kg 2.6% 1 Calculated weighted average %HM in situ based on CERTIMIN (TBE, S.G. 2.96) results of all samples that make up each composite. A Samples were reconstituted proportionally from sub-samples of remaining laboratory sample fraction pairs (-1mm+52µm) and (-52µm) stored by CERTIMIN prior to being composited such that the composite represents the -1mm fraction of the ore in situ. B “HM composites” were made by combining the HM fraction (S.G.>2.96) separated from each aliquot of sand (-1mm+52µm) fraction from each sample by CERTIMIN and as such are not necessarily perfectly weighted. C Composites were prepared by combining weighted proportions of representative field rejects (-6.3mm) of each sample such that the composite represents the -6.3mm fraction of the ore in situ. Heavy Mineral Assemblage Head samples of four bulk composites representing the northern and southern halves of the above water table portions of both the “Heldmaier” and “Tres Chosas” resource areas were sieved to -1mm+38µm and subjected to a heavy liquid separation using Bromoform (S.G. 2.85) by CPG-Mineral Technologies (CPG-MT), in Carrara, Queensland. The resulting HM fraction was analysed by QEMSCAN at AMDEL laboratories in Adelaide (Table 2).

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The dominant minerals present were the “Combined Fe-oxides” including magnetite with intergrowths of other Fe-oxides averaging 25.5% of the HM and Andalusite which averaged 25.3% of the HM. The Titanium minerals present were Ilmenite, Titanite, Rutile and Leucoxene (in order of abundance) and which together total an average of 4.4% of the HM. The garnet group of minerals averaged 1.7%, Apatite 0.6% and Zircon 0.2% of the HM respectively. Previously reported Heavy Mineral assemblage data (released 7 July 2011) were single point HM samples from TBE (>S.G. 2.96) separations of the sand fraction (-1mm+52µm) of pit samples (1 m deep) and contained relatively higher proportions of Magnetite and Titanium minerals, and relatively lower Andalusite content, suggesting near surface enrichment of Magnetite and Titanium Minerals, possibly as a result of concentration by aeolian deflation processes. Table 2 – Heavy Mineral Assemblage (>2.85 S.G.) of four composites representing the above water table portion of the “Heldmaier” and “Tres Chosas” JORC Inferred Resource Areas.

JORC Inferred Resource Areas Heldmaier Tres Chosas Shaft North Shaft South Shaft North Shaft South HM1 in situ (%) 9.1 5.4 14.5 14.4 HM1 in sand (-1mm+38um) fraction (%) 19.9 17.7 23.0 16.8 Combined Fe-oxides (%)2 26.9 24.6 27.0 23.5 Andalusite (%) 25.9 27.1 24.2 24.0 Sum of Titanium minerals (%)3 4.4 5.0 4.3 3.7 Rutile (%) 0.5 0.5 0.4 0.4 Leucoxene (%) 0.1 0.1 0.1 0.1 Ilmenite (%) 2.7 3.1 2.9 2.6 Titanite (%) 1.1 1.3 0.9 0.7 Garnet Group minerals (%)4 2.0 1.0 1.9 1.8 Almandine (%) 0.8 0.5 0.8 0.7 Grossular (%) 0.3 0.2 0.2 0.1 Andradite (%) 1.0 0.4 0.9 0.9 Apatite (%) 0.5 0.7 0.8 0.4 Zircon (%) 0.1 0.4 0.2 0.1 Gangue (%)5 40.1 41.4 41.6 46.5

1 Heavy mineral based on dense liquid separation using Bromoform with a density of 2.85 g/cm3 2 “Combined Fe-Oxides” is the sum of all Iron Oxides (including Magnetite) which are dominantly present as part of Magnetite particles as intergrowths. 3 “Titanium Minerals” include Ilmenite, Rutile, Leucoxene and Titanite. 4 “Garnets” include Almandine, Grossular and Andradite. 5 Gangue Minerals form the balance of Heavy Minerals and include Quartz, Micas, Amphibole, Feldspar, Chlorite and other Silicates. A head sample of one bulk composite representing the below water table portion of the southern half the “Heldmaier” resource area was sieved to -1mm+38µm and subject to a heavy liquid separation using Bromoform (S.G. 2.85) by CPG-MT. The resulting HM fraction was analysed by QEMSCAN at AMDEL laboratories in Adelaide (Table 3). As with the above water table composites, the dominant minerals present in the HM from below the water table were the “Combined Fe-oxides” including magnetite with intergrowths of other Fe-oxides reporting 21.2% of the HM and Andalusite which averaged 16.8% of the HM. The Titanium minerals present were Ilmenite, Titanite, Rutile and Leucoxene (in order of abundance) and which together constituted 4.0% of the HM. The garnet group of minerals formed 1.2%, Apatite 1.1% and Zircon 0.3% of the HM respectively.

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Table 3 – Heavy Mineral Assemblage (>2.85 S.G.) of one composite representing the below water table portion of the “Heldmaier” JORC Inferred Resource Area.

JORC Inferred 1 Resource Area Heavy mineral based on dense liquid separation using Bromoform with a density of 2.85 g/cm3 Heldmaier 2 “Combined Fe-Oxides” is the sum of all Iron Oxides Drill South (including Magnetite) which are dominantly present as part of Magnetite particles as intergrowths. 1 HM in situ (%) 6.2 3 “Titanium Minerals” include Ilmenite, Rutile, HM1 in sand Leucoxene and Titanite. 4 (-1mm+38um) fraction (%) 7.2 “Garnets” include Almandine, Grossular and Andradite. 2 Combined Fe-oxides (%) 21.2 5 Gangue Minerals form the balance of Heavy Minerals Andalusite (%) 16.8 and include Quartz, Micas, Amphibole, Feldspar, Sum of Titanium minerals (%)3 4.0 Chlorite and other Silicates. Rutile (%) 0.7 Leucoxene (%) 0.1 Ilmenite (%) 2.3 Titanite (%) 0.9 Garnet Group minerals (%)4 1.2 Almandine (%) 0.6 Grossular (%) 0.2 Andradite (%) 0.4 Apatite (%) 1.1 Zircon (%) 0.3 Gangue (%)5 55.5

Magnetite Quality Fifteen HM composites of the heavy mineral obtained from routine TBE (S.G.>2.96) separations by CERTIMIN of the sand (-1mm+52µm) fraction of shaft samples from the “Heldmaier” resource area were prepared by Latin to represent sections through the above water table portion of the resource area. These composites were subject to 400 Gauss magnetic separations (to extract only the highly magnetic “magnetite” fraction) by Diamantina Laboratories, Perth and the magnetic fraction subsequently analysed by XRF at SGS Laboratories, Perth (Table 5). The average recovery of magnetite by this method was 17.9% of the HM, which represents a 70% yield to product (recovery) relative to the Combined Fe- Oxides as identified by the QEMSCAN mineralogical analysis. The average Iron (Fe) grade of the recovered magnetite was 62% within a range of 59.4% to 63.6% which is quite high compared with other Iron Sands products (normally in the range 55%-58% Fe). Corresponding impurities in the magnetite

were low with Titanium Dioxide (TiO2) averaging 3.9% and Phosphorus (P) averaging 0.1%. The “Heldmaier” Shaft South composite, which was prepared from samples of the same shafts from which the 15 HM composites were prepared, was subject to pilot plant style processing at CPG-MT to produce a magnetite concentrate. The Fe grade and low impurities were similar to the average Fe grade and low impurities of the 400G magnetic separations of the fifteen HM composites (Table 4). Table 4 – Comparison of XRF analyses of the CPG-MT pilot plant test Magnetite Product and the average XRF analyses of the magnetite fraction of the HM composites LR-C001 to LR-C015.

Fe SiO TiO Al O MnO MgO CaO K O Na O P S V O XRF Analysis 2 2 2 3 2 2 2 5 (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) Magnetite product from pilot plant test of 61.8 5.7 3.6 1.6 0.4 0.5 0.9 0.2 N/A 0.1 0.02 0.41 “Heldmaier” Shaft South Composite 400G Magnetic Fraction from LR-C001 to 62.0 4.7 3.9 1.5 0.4 0.6 1 0.2 0.2 0.1 0.02 0.41 LR-C015 Average Grade

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Table 5 – XRF Analysis of the magnetite fraction of 15 HM composites of the heavy mineral obtained from routine TBE (S.G.>2.96) separations by CERTIMIN of the sand (-1mm+52µm) fraction of shaft samples from the “Heldmaier” resource area. Shafts represented by each composite are listed in Table 1 and mapped in Appendix 2.

“Heldmaier” Inferred Resource Area (South) “Heldmaier” Inferred Resource Area (North)

Composite Number LR-C001 LR-C002 LR-C003 LR-C004 LR-C005 LR-C006 LR-C007 LR-C008 LR-C009 LR-C010 LR-C011 LR-C012 LR-C013 LR-C014 LR-C015 Weighted Avg HM (%) in situ of Shafts 3.1 8.1 2.2 19.6 3.6 3.4 4.6 4.7 8.0 4.3 3.6 4.7 12.4 5.5 39.4

Weighted Avg HM (%) in sand fraction (-1mm+52um) of Shafts 16.4 13.5 12.5 20.7 13.4 12.2 11.1 13.4 14.9 13.5 10.3 15.3 14.3 19.7 39.9 400 Gauss Magnetite as % of HM 18.5 16.3 17.7 15.3 25.1 14.5 18.5 18.0 16.1 14.4 19.4 17.6 14.1 24.5 18.1

Fe (%) 63.6 59.4 63.3 61.9 62.4 62.3 61.0 62.9 61.7 62.0 62.2 62.5 59.8 63.0 62.0

SiO2 (%) 3.6 6.7 4.2 4.7 4.3 4.6 5.4 4.1 5.1 5.0 4.7 4.5 6.4 3.7 4.4

TiO2 (%) 3.7 4.1 3.7 3.9 4.1 3.9 4.3 3.8 3.8 3.8 3.8 3.7 4.2 4.0 4.2

Al2O3 (%) 1.2 1.9 1.3 1.5 1.4 1.4 1.6 1.3 1.5 1.5 1.5 1.4 1.9 1.2 1.4 MnO (%) 0.3 0.4 0.3 0.4 0.4 0.3 0.4 0.4 0.4 0.4 0.4 0.3 0.4 0.3 0.3 MgO (%) 0.5 0.9 0.5 0.6 0.6 0.6 0.7 0.5 0.7 0.6 0.7 0.6 0.8 0.5 0.6 CaO (%) 0.8 1.3 0.9 1.0 1.0 1.0 1.1 0.9 1.0 1.0 1.0 0.9 1.2 0.9 1.0

K2O (%) 0.1 0.2 0.1 0.2 0.1 0.2 0.2 0.1 0.2 0.2 0.2 0.1 0.2 0.1 0.1

Na2O (%) 0.1 0.2 0.1 0.2 0.2 0.2 0.2 0.1 0.2 0.2 0.2 0.1 0.2 0.1 0.2 P (%) 0.09 0.11 0.09 0.10 0.11 0.10 0.11 0.10 0.10 0.10 0.10 0.09 0.11 0.09 0.10

XRF Assay of Magnetic Fraction Magnetic of Assay XRF S (%) 0.02 0.02 0.02 0.03 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.03 0.03 0.04

V2O5 (%) 0.41 0.39 0.41 0.41 0.41 0.41 0.41 0.41 0.41 0.41 0.43 0.41 0.39 0.43 0.43

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Andalusite Quality On 29 November 2010 Latin reported the results of mineral characterisation work using a combination of Scanning Electron Microscopy (SEM) and Energy Dispersive X-Ray Spectrometry (EDS) analysis which was undertaken by Dr Gladys Ocharan of MyAP, a specialist mineralogy consultancy in Lima, Peru. This showed Andalusite to be sub-angular, separate mineral grains of a variety of sizes. Of greatest significance was the very low iron content of the grains (<1%) as demonstrated by consistent EDS spectra of point analyses of a number of grains. More recent MLA (ALS) and QEMSCAN (Amdel) work has shown the Andalusite to be one of the more liberated of minerals (around 80%) and can be rated as "high grade" in this respect. The particles contain only very minor inclusions of other minerals, such as ilmenite, rutile, and zircon. Evaluation of data produced to date by an independent Andalusite processing and marketing expert with both operating and marketing experience in the Andalusite mining and downstream processing industries, confirms that Latin’s Andalusite shows good potential to be able to produce a high-purity Andalusite concentrate that may be marketable for a variety of end uses. An intermediate product from pilot plant style testwork on the “Heldmaier” Shaft South and Drill South Composites at CPG-Mineral Technologies was used as a starting point for further test work to produce an Andalusite concentrate for a marketing study. This test work has recently produced a near final Andalusite product consistent with the minimum requirements of marketable Andalusites. Final cleaning using flotation is underway and is expected to further improve the concentrate to a high quality Andalusite product that will be used directly for market evaluation in the coming months.

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APPENDIX 2: MAPPED DATA – COMPOSITE SAMPLE KEY FOR THE TRES CHOSAS and HELDMAIER RESOURCE AREAS (and the LOS CONCHALES TARGET AREA). Locations of the Shafts and Drill Holes that make up the composites subject of this release have been mapped on the next page within the corresponding “Heldmaier” and “Tres Chosas” resource areas. The extent of the map compared with Latin’s concession holding and the “Heldmaier” and “Tres Chosas” resource areas, and the “Los Conchales” target area are shown on this page:

Map Area

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APPENDIX 3 – MINERAL USES AND MARKET INFORMATION Magnetite Magnetite comprise about 40-50% of the iron ore consumed by the worlds steel industry and are steadily increasing in market share as high quality Hematite resources become depleted. Titaniferous magnetite ores are a sub-category of the traditional magnetites because of a slightly higher content of Titanium and Vanadium and form a niche market segment of the larger iron ore industry. Titanomagnetite is used in pellet and sinter production, typically as a blend with ores containing less titanium. The typical use of titanomagnetite is as a secondary feedstock to hematite or magnetite ores and the proportion used is dictated by the chemical analysis of the primary feed. Technological advancements particularly in the field of Direct Iron Reduction (DRI), a replacement technology for the Blast Furnace has enabled companies to use lower grade feed sources such as the titanomagnetite as the primary input into iron making with no economic impact from the higher titanium content. The adoption of DRI technology in the developing nations, notably in India and recent legislation changes in China favouring the installation of DRI capacity as a result of its environmental advantages over Blast Furnaces has potentially opened up new markets for magnetites derived from iron sands. Technologies such as DRI processes are expected to continue to enhance titanomagnetite demand as steel manufacturers become increasing capable of using lower grade feed sources. Steel manufactures that use DRI processes can use titanomagnetite as a direct primary feed making it an ideal feed source. Taharoa Iron Sands ( Blue Scope Steel) having been one of the longest running commercial iron sands producers in the world and can be considered a benchmark in terms of pricing. Titanomagnetites are generally indexed against the Pilbara High Grade (HG) Fines (61.5% Fe), recently ranging in price between US$125 and US$135 per tonne in Chinese Ports. Magnetite from Guadalupito is expected to command a slight premium against those lower grade titanomagnetites currently produced due to its relatively higher Iron content and lower Titanium. Andalusite

Andalusite, together with the polymorphs Sillimanite and Kyanite share the composition Al2SiO5 which makes them highly refractory. Sillimanite group minerals are mainly used in the production of mullite or high-alumina refractories and 95% of the world's consumption of these minerals is used for this purpose in the manufacture of steel, other metals, glass, ceramics, aluminium and cement. The refractory industry is the main primary user with Andalusite being a component of both shaped and unshaped refractories and hence developed countries with significant steel, aluminium, foundry and glass industries are all users of Andalusite. Andalusite prices have shown a steady increase since 2000 as demand by the steel industry has increased. On USGS figures the steel industry uses 10 to 14kgs of refractories (including Andalusite) for each tonne of steel. Besides refractories, Andalusite is used in the production of high alumina, wear resistant tiles and recently as a replacement for opacifier grade zircon in the production of certain types of wall and floor tiles. Other uses include foundry coatings, foundry sands, fine ceramics using low iron Andalusite and technical/laboratory ceramics. The long term forecast for the Andalusite industry is particularly good thanks to its potential as a substitute for bauxite. With the supply of Chinese bauxite becoming increasingly unreliable due to export restrictions, and greatly increasing prices, non-Chinese Andalusite is seen as a stable and freely available substitute in high alumina refractories. Insecurity of bauxite supply has permeated the industry, and this bodes well for the Andalusite suppliers who have, almost without exception, started new operations or expanded existing operations. Andalusite mineral pricing varies significantly depending on quality factors such as sizing, purity, packaging and shipment. Indicative pricing suggests a range between US$350 and US$450 per tonne.

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Imerys, one of the world’s largest suppliers of refractory materials predicts ongoing price rises in 2012 and beyond due to continuing strong demand. Titanium minerals Rutile, Ilmenite & Leucoxene About 95% of all titanium-bearing mineral products produced in the world are used in the titanium dioxide (TiO2) pigment industry. Titanium dioxide is used predominantly as an opaque white pigment to impart whiteness, brightness and opacity. Titanium dioxide pigment is the premier white pigment and is used in UV-resistant paint and plastics, high-quality paper, rubber, ceramics, fabric, toothpaste, soap, cosmetics, food and sunscreens. Other important properties of titanium dioxide include its chemical inertness, resistance to UV degradation and thermal stability over a wide range of temperatures. The three minerals are differentiated by their varying titanium dioxide content with Rutile having approximately 95% TiO2, Luecoxene 75-90% TiO2 and Ilmenite 45-65% TiO2. Rutile, Ilmenite (and Leucoxene) are also used as sources of titanium metal and in flux coatings on welding rods. Titanium metal is used mainly where lightweight, strong and corrosion-resistant materials are required. It is used to form surgical components, such as heart pacemakers and artificial limbs/joints, as it is the only metal not rejected by the body, or as a lightweight metal for aerospace components. Rutile and Ilmenite have increased in price dramatically over the past two years and prices are expected to remain high for the foreseeable future. Rutile prices have increased from long term averages of US$650 per tonne rising in the last year to over US$2200 per tonne and are expected to stabilize longer term at between US$1200 and US$1400 per tonne. Historical long term prices for Ilmenite has been between US$90 and US$110 per tonne but in the last few years have risen to between US$300 and US$400 per tonne. Post 2015, Sulphate Ilmenite is expected to stabilize in the range of US$170 and US$200 per tonne. Zircon Zircon is generally considered a by-product or co-product in the extraction of Ilmenite or Rutile. About half the world’s zircon production is used in the ceramic industry in glazes (to provide opacity) and to whiten ceramic bodies — including wall tiles, dinnerware, sanitary ware and decorative ceramics. Zircon is widely used in TV screens and computer monitors to prevent radiation leakage. Industrial ceramics containing Zircon are used in refractory applications requiring resistance to heat and abrasion. Other uses of zircon include: the production of zirconium metal for use in pollution-control equipment and camera flash-bulbs; cubic zirconia crystals as a synthetic gem; rapidly rechargeable lightweight batteries; zirconium hydride in flares and fuses; and stannous hexafluorozirconate as an ingredient in toothpaste to prevent tooth decay. Zircon prices have increased dramatically in the last two years from a long term average of US$800 per tonne to more than US$2400 per tonne over the past year or so and are expected to stabilize in the range of US$1600 to US$2000 per tonne over the next several years. Garnets Garnets are being increasing used in multiple applications as an abrasive due to their sharp sub rounded to sub angular chisel-edged fracture planes, little or no free silica content, high bulk density, and high resistance to physical and chemical attack. Various applications for Garnet as an abrasive include coated and bonded abrasives (e.g. sandpapers and derivatives), airblast abrasives (used in shipbuilding and repair, industrial painting, powder coating, pipe and tank cleaning), precision powders (used in specialty grinding and finishing, abrasive cleaners and tumbling media), and waterjet cutting (highly pressurized water with a garnet abrasive is used as a highly efficient and precise cutting tool in cold cutting applications). Additional uses for Garnets are in filter beds in water and wastewater treatment, and as an adhered coating for non-skid surfaces. USGS estimates global production of Garnets have increased 10 fold over the last 20 years to over 1.4 million tonnes per annum with prices in this period ranging from US$230 to US$330 per tonne.

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