Issue link: http://resourceworld.uberflip.com/i/612354
46 www.resourceworld.com d e c e m b e r / j a n u a r y 2 0 1 6 mINING A dvancing a resource project along the value curve requires commitment and planning, but it doesn't hurt to have a measure of good fortune too. Consider that a small Canadian explorer, Uragold Bay resources [UBR-TSXV], acquired its Roncevaux Project in Québec as part of its staking rush into quartz when multinational companies enquired about the potential for high-grade quartz from properties next to its Beauce Gold Project to be used in silicon metal production. With the emergence of an exciting new technology it now appears the project could be on track for development. Quartz is extremely common and there- fore is usually of low value. However, high purity quartz deposits are rare. A sampling program of the outcropping Roncevaux vein yielded grades in excess of 99% pure quartz, with very low impurities. A major producer has confirmed that the quartz samples from the project have successfully passed their rigorous test- ing protocol. This means the quartz sourced from Roncevaux may be used to produce silicon metal and interest has been expressed to purchase a significant quantity. Meanwhile, work has also been com- pleted at Roncevaux to validate historical quartz reserves. A near surface resource that is remarkably uniform in grade, above 99% purity, has been outlined across vein widths of 3-12 metres and a strike length of up 400 metres. The company has not encountered any significant environmental issues that could impair a positive out- come, and permitting is not expected to be a problem in mining friendly Québec. Demand for silicon has been rising due to its use in solar panel manufacturing, a market estimated at more than $6 billion worldwide with strong growth potential. Pure silicon metal, suitable for solar pan- els, can sell for upwards of US $12,000/ton, and about 3 tons of high purity quartz is required to produce each ton of silicon. The biggest issue at hand for silicon processing is that it requires high energy and high temperatures to refine the metal from quartz, and it is therefore extremely expensive both in operating costs and cap- ital expenditures to build a plant. This has served to limit the number of processing plants that can supply the metal. About 350,000 tons/year is the upper range for production. The key advantage for a smaller player like Uragold Bay comes down to its abil- ity to access low cost, high purity quartz. As well Uragold is working on developing a new refining process that could enable much cheaper production; the company has partnered with Pyrogenesis Canada Inc. to commercialize a technology that vaporizes raw quartz in a plasma furnace. This opens the door to enable smaller scale silicon production with a huge advantage in efficiency and costs com- pared to conventional processing options. Pyrogenesis has granted Uragold Bay exclusive worldwide marketing rights to its patented PUREVAP Quartz Vaporization technology and will be paid a royalty of 10% on all sales from the process. Metallurgical testing and validation of this patented process is currently under- way and results are expected early in 2016. The industry is watching and if the pro- cess is proven effective, the next step will be establishing a demonstration plant that could commence smaller scale production with positive economics. This would be a huge leap forward for a small Canadian niche player in a sector where more than $1 billion in capital expenditure is the norm to achieve production. The biggest challenge in the short term is navigating a very difficult market for smaller resource companies. Uragold Bay management has been proactive in considering a variety of options to move the company ahead and work towards their goal of establishing production. In a market dominated by large companies, Uragold Bay may be part of a success story that changes the way silicon metal is pro- duced, and may open the door for smaller producers. n Sample material of high purity quartz from the Roncevaux vein. Source: Uragold Bay Resources file photo. URAGoLD BAY ReSoURCeS focuses on silicon metal production plans