Resource World Magazine

48 www.resourceworld.com F E B R U A R Y / M A R C H 2 0 1 4 MINING In addition to its plans to explore, develop and build antimony mines in Turkey and Canada, Tri-Star Resources PLC [TSTR-AIM] has entered a non-binding Memorandum of Understanding with Oman Investment Fund and Castell Investments to construct and operate an antimony roasting facility in the Sultanate of Oman. Tri-Star is also working with its partners in the Gulf to assist in financing. Emin Eyi, Managing Director, told Resource World, "At our Goynuk antimony property in Turkey, a past-producing mine, we have conducted scout drilling on either side of the old mine workings in areas where we could see some structure and formation. The drill holes were 30 to 70 metres from surface where we encountered the same stib - nite mineralization seen in the mine along a 1.4-km strike length." Stibnite is the ore of antimony. "The next step," said Eyi, "is to conduct infill drilling. The former mine owners were high grading visible veins from surface, so we want to systematically develop the geo - logical model and delineate resources over the next year or so. The mine is so old that there were no resources developed to today's NI 43-101 standards. The dump from the old workings grade 2% to 2.5% Sb." Eyi explained that Tri-Star has completed an internal feasibility study and will even - tually engage independent consultants. The mine site is permitted and serviced with power and water. Skilled workers are also available. "Subject to an environmental permit, we plan to build a small-scale concentrator," said Eyi. "We would then ship the concentrate to our planned roaster in politically stable Oman which we expect to be completed sometime in 2016. The location of our proposed roaster is at the Port of Sohar in the free-trade zone. This site is affordable and has great infra - structure and favourable taxes. The plan is to export ingots and finished antimony trioxide products to the main growth markets of Asia and Japan, Taiwan and Korea which are easy to access from Oman." Eyi remarked that Oman was chosen as the site for an antimony roaster as that locale would be convenient to receive Tri-Star's concentrate as well as concentrate from other antimony mines that are coming into production. These mines were closed in the 1980s and 1990s due to depressed antimony prices which led to China handling roasting operations. "With antimony prices starting to recover in 2005, we could see the Goynuk Project in Turkey becoming economic again as well as other antimony mines," said Eyi. "We expect to see antimony mines operating in Peru, Bolivia, Thailand, Myanmar, Australia, Canada, South Africa and Mexico." The total capital cost of the Oman roaster project is estimated at US $342 million, including contingencies and working capital. Construction is expected to start in the latter part of 2014 with 2016 forecast to be the first full year of production. Tri-Star is also looking into treating refrac - tory gold ores (gold trapped in sulphide minerals) in the Oman roaster. At this pre- liminary stage, a gold roasting facility would be technically feasible with an estimated NPV of US $532 million and an IRR of 31%. In Canada, Tri-Star acquired Portage Minerals in September 2013 which owned several antimony and gold projects. As outlined in a NI 43-101 report, the flag - ship project is the Bald Hill Project in New Brunswick that has the potential to host a deposit in the 725,000 to 1,000,000-tonne range grading 4.11% to 5.32% antimony, making it one of the largest undeveloped antimony projects in North America. Exploration at the Bald Hill deposit is ongo - ing as well investigations into its extension. "We see this as a district-scale opportunity because a mineralized belt came with the acquisition," said Eyi. "Our ambition is to get rapid access to the near-surface deposits at Bald Hill to generate a concentrate prod - uct for the antimony roaster in Oman. The shipping cost is about $450 a tonne compared to ingot and trioxide prices of US $11,000 to $13,000 per tonne, so shipping is not a big proportion of the price." Eyi said he likes to see a stable market for antimony. He notes that China has restric - tions on antimony exports. Antimony is used as a flame retardant in printed circuit boards and as an additive in the chemical industry, making the market favourable for antimony which is considered to be a critical metal. America, Europe, Japan, Taiwan and Korea are 100% dependent on antimony imports from China. Tri-Star also acquired two gold deposits in New Brunswick from Portage – the Golden Pike and Golden Ridge that have NI 43-101 compliant resources. n Tri-Star Resources plans to be integrated antimony supplier By Ellsworth Dickson Rock samples showing examples of stibnite crystals, the ore of antimony, from the Goynuk antimony project in Turkey. Photo courtesy Tri-Star Resources PLC.

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