Recovery & Treatment of Apatite & Titaniferous
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63.5*55 4t014SEea48 63.5455 MCNAUGHT 010 RECOVERY AND TREATMENT OF APATITE AND TITANIFEROUS MAGNETITE BY CONCENTRATING AND SMELTING November 22, 1974 L L Sources Inc. file V. fc* S 4IOMSee848 63.5455 MCNAUGHT 010C TABLE OF CONTENTS SUMMARY CONCLUSIONS RECOMMENDATIONS Section 1. INTRODUCTION 2. MERTEC RESOURCE DEVELOPMENT LIMITED 3. MARKET STUDY 3.1 Steel 3.2 Pig Iron 3.3 Phosphate Fertilizer 4. PROPERTY 4.1 Location 4.2 Claims 4.3 Topography 4.4 Geology 4.5 Ore Bodies 4.6 Mineralogy l l Sections. DIAMOND DRILL REVIEW 5.1 Resume 5.2 Anomaly No. 6 5.3 Anomalies Nos. 3 and 4 5.4 Anomaly No. 8 5.5 Anomalies 1, 5, 9 and 10 5.6 McVittie Anomaly 5.7 Tooth Anomaly 5.8 Pyrochlore Fracture Zone 6. MINING 6.1 Anomaly No. 6 6.2 Mine Area 6.3 Tonnage and Grade Estimates 6.4 Mining Method 6.5 Anomalies Nos. 3 and 4 7. PROCESS r t Section 8. CONCENTRATOR 8.1 Crushing 8.2 Grinding 8.3 Sulphide Flotation, Magnetic Separation and Regrinding 8.4 Apatite Flotation 8.5 De watering and Drying 8.6 Engineering and Construction Schedule 8.7 Cost Estimate, Concentration Agglomeration and Services 9. AGGLOMERATION 10. ENVIRONMENTAL PROTECTION - (mine and concentrator) 11. SERVICES AND UTILITIES 11.1 Introduction 11.2 Road 11.3 Rail Facilities 11.4 Oil Supply 11.5 Electric Power 11.6 Water Supply 11.7 Telephone Section 12. SMELTER 12.1 Introduction 12.2 Metallurgical Requirements and Process Description 12.3 Environment 12.4 Equipment Requirements 12.5 Site Requirements 12.6 Building Descriptions 12.7 Utilities 12.8 Drawings 12.9 Cost Estimates 12.10 Construction Schedule i 12.11 Operating Costs 12.12 Labour Requirements 13. ORGANIZATION (summary) 14. ESTIMATE OF CAPITAL COST (summary) 15. ESTIMATE OF OPERATING COSTS (summary) 16. CONSTRUCTION SCHEDULES (summary) Section 17. FINANCIAL EVALUATION 17.1 General 17.2 Financing 17.3 Capital Costs 17.4 Operating Costs 17.5 Summary SUMMARY The mineral property owned by Multi Minerals Limited situated near Nemegos, Ontario, and comprising 51 contiguous patented mining claims totalling 2,369 acres, has been leased on a long term basis by Mertec Resource Development Limited, for the purpose of mineral recovery, A review of prior data has been carried out including exploration, drilling, metallurgical testing and technical analysis, dealing with this property. However, time available to complete this preliminary feasibility study has not allowed for the expansion of previous drilling or geological knowledge. Additional data will be required before substantial commitment of capital funds. Some of this work has already been contracted. The locations of the mine/concentrator and the smelter have been examined and no extraordinary site difficulties are apparent. The locations are close to populated communities which will provide a source of labour and housing facilities. The topography lends itself to provision for transportation and access requirements. Climatic conditions in the area are not subject to extremes which would make for impossible working conditions during any signifi cant part of the year. The geology of the mining property has been subject to intensive examination over the years. There are several known anomalies of interest and others which, while indicated, have never been investigated. The so-called Anomaly No. 6 will be the ore source for commencement of mining operations. It contains about 4.2 million tons of recoverable ore containing about 69.ff/o titaniferous magnetite and about 21.8P/0 apatite. It is proposed to mine and separate these minerals, to sell the apatite and convert the titaniferous magnetite to iron or steel and titania-bearing slag. This ore body will have a life of about 9 years and, prior to exhaustion, it is proposed to open up Anomalies Nos. 3 and 4. These anomalies are estimated to contain some 13 million tons of recoverable ore which carries about 15.7& titaniferous magnetite and about 21 .fP/o apatite. The ore in Anomaly No. 6 will be recovered by ramping into the ore and will be by contract. It is anticipated Anomalies Nos. 3 and 4 will also be mined by this method. SUMMARY Concentration of the ore has been demonstrated at pilot plant scale at the Department of Mines and Technical Surveys, Ottawa and by International Nickel Company, Copper Cliff. Concentrator design is in accordance with the results achieved in these investi gations. About 66,000 net tons of apatite concentrate per year grading about 7SVo B PL will be dispatched by rail to consumers in the fertilizer industry. Titaniferous magnetite concentrates, amounting to about 300,000 net tons per year will be pelletized, indurated and shipped by rail to the smelting facility. After mixing with coal and fluxing agents, this material will be charged into an electric furnace and converted into metallic iron. The iron may be processed through a pig machine and sold to consumers of pig iron or alternatively, it can be further treated in a refining furnace and converted to steel. The steel could be passed through a continuous billet casting machine and sold to the trade as steel billets. A market survey has been carried out and it has been determined that there are serious shortages of pig iron, steel billets and apatite, not only in Canada, but world-wide. Several reputable companies expressed serious interest in contracting for periods of five or more years for the total output of these products, subject to quality and reliability of delivery. Pricing of the various products of the operation has been treated conservatively for purposes of the financial study. Pig iron, considered equivalent in quality to contemplated production, is manufactured and sold by Quebec Iron and Titanium Corporation at SI60.00 per net ton. This study uses a figure of Si50.00 per net ton. Billets are not regularly offered or quoted for sale, but price indications of from Si50.00 to S200.00 per net ton have been secured from reputable buyers. For the purposes of this study, a figure of Si60.00 per net ton has been used. Apatite concentrates have been valued at S45.00 per net ton against a published price list indicating S48.00 to S55.00 as applying to phosphate rock of similar quality originating in Florida. Capital requirements for the entire complex, inclusive of mine, concentrator, briquetter, smelter, services, land, engineering and project management fees, are estimated at S49 million for steel production and S38 million if pig iron is the end product. TIMMINS MERTEC RESOURCE DEVELOPMENT LIMITED L KEY MAP MILES RECOMMENDATIONS 1. Confirm financial support anticipated from Federal and Provincial Governmental agencies. 2. Ensure suitable outside financing, as may be required, for the total project. 3. - Obtain approval of environmental protection plans and water diversion from Ontario Ministry of the Environment. 4. Construct adequate dam facilities to divert the stream ~~"© flowing over Anomaly No. 6 5. Conduct a modest diamond drill programme at Anomaly No. 6 to confirm ore and rock competence at a cost of about S50,000.00. 6. Obtain confirmation of cost of rail spur from Canadian Pacific Railway. 7. Obtain confirmation of costs of power line from Ontario Hydro Electric Power Commission or private contractor. 8. Observe and review smelting test work to be carried out on titaniferous magnetite concentrates by United States Bureau of Mines, Albany, Oregon; Lectromelt Corporation, Pittsburgh, Pennsylvania, to assist in monitoring the process. 9. Proceed with smelting facilities to production and sale of pig iron, but lay out plant for future addition of steel billet facilities if technically or financially advantageous. 10. Acquire technically trained and capable management personnel early in the building programme, to ensure avail ability of competant operating staff and to enable familiar ization with all details of plant design and construction. r CONCLUSIONS l . An extensive diamond drilling program carried out several years ago has revealed the existence of numerous anomalies on claims leased by Mertec from Multi Minerals. 2. One ore body known as Anomaly No. 6 contains some 4.2 million net tons of recoverable titaniferous magnetite-apatite ore, high in iron content. 3. Two additional ore bodies known as Anomalies Nos. 3 and 4 contain some 23 million net tons of titaniferous magnetite- apatite ore but substantially lower in iron than Anomaly No. 6. 4. A process for concentrating the mineral components and a ; -method to produce pig iron or steel have been examined and ^ ©©S vare considered to be technically viable. 5. A net capital investment of about S38 million will be required to provide facilities to recover apatite and pig iron. This figure escalates to S49 million if a decision is taken to convert the pig iron to steel billets. 6. Financial studies based on capital required and including capitalization of debt interest, indicate a satisfactory return on investment. 7. The project may qualify for financial assistance from Federal and Provincial Government agencies. 8. Market surveys reveal all of the products contemplated for manufacture are in short supply and can be readily absorbed in Canadian or foreign markets well into the foreseeable future. 9. Price indications for products arising from the proposed operations are presently firm and are indicated as being under upward pressure during the remainder of this decade. 1. INTRODUCTION A test program to establish and confirm metallurgical and chemistry controls for purity of metal and slag in the pyrometallurgical separation of iron and titanic in the titaniferous magnetite will be carried out at the research facilities of the U.S. Bureau of Mines at Albany, Oregon. This work will be supervised and observed by metallurgists of Scrivener Engineering Limited and Lectromelt Corporation, Pittsburgh, Pa., the latter company a subsidiary of Pennsylvania Engineering Corporation.