Moina, Tasmania

Moina fluorspar, tungsten and magnetite, Tasmania

The Moina skarn hosts a very large poly-metallic resource accumulation in skarn bodies.  Based only on higher grade and relatively shallow fluorspar (also known as fluorite) intersections, suitable for an open-cut operation, previous explorers estimated mineralization at 26.5Mt @ 18% fluorite, 0.1% tungsten and 0.1% tin in a magnetite host.  In that restricted resource alone is a contained $2-3 billion of metal.   That in-ground metal value equates to about a 5g/t gold equivalent open cut deposit. 

This is the largest known fluorspar deposit in Australia, containing about 1% of the world’s known resources.  Based on the limited drilling beyond that estimated mineralization, Minemakers believes there is potential to double that mineralization tonnage. There is considerable potential for additional recovery of tungsten and tin, zinc, magnetite, molybdenum, bismuth and gold, as well as for the discovery of sheeted tungsten and tin deposits below the main skarns.

It occurs about 50km by bitumen road south of the export port of Burnie on the Tasmanian north coast.  It has excellent infrastructure being close to a hydro power station and is in an area of relatively low conservation stature.

Minemakers has an option to purchase an initial 80% equity in the tenement RL8810 which contains the deposits.  

Commentary on fluorspar

Also known as fluorite, fluorspar is predominantly used in the production of hydrofluoric acid and aluminum fluoride.  The acid is the primary feedstock for the manufacture of almost all fluorine-bearing chemicals and is an essential ingredient in the processing of aluminium and uranium, and in the manufacture of all refrigerant and air-conditioning gases.  The remaining production is used in steelmaking, foundries, glassmaking and other areas.

China dominates world supply and, until recently, exports.  However, in late 2007 it became evident that it was struggling to meets its own needs and export availability has been curtailed.  It seems that further export restrictions are likely in the future.

This has caused a strong fluorspar price increase to over US$300/tonne, compared to US$130 in early 2007.  Fluorspar consumers are now looking at alternative sources of supply

Metallurgy

There is a considerable body of metallurgical testwork for Moina which dates as far back as the 1970s.  Minemakers commissioned a world fluorspar expert to assess those historic reports to determine if the project was fatally flawed metallurgically.

In essence, the project is not fatally flawed, although it is unlikely to be able to produce fluorspar to match the premium Chinese grades.  It is currently considered that the new demand for non-Chinese fluorspar sources is likely to overcome any relative quality difficulties.

A comprehensive metallurgical testwork programme has been initiated in Europe which is concentrating upon a mix of flotation and gravity techniques aimed at recovery of fluorspar, tungsten, tin and base metals.

Results are anticipated in the first quarter of 2008.

Potential size perspective

To give an idea of the potential of Moina, if it were to go into production at 3Mtpa into the mill, it may produce, based on 2006 world production figures:

• At 75% recovery, 15% of the world's non-Chinese fluorspar output.
• At 100% recovery, 25% of the non-Chinese tungstate production.

Minemakers' aims

• Drill out the main deposits to at least JORC-compliant Indicated Resource status and to allow open-pit design optimization.
• Concurrently, undertake the necessary metallurgical testwork for optimal circuit design.
• Assess the potential to market the bulk commodities magnetite and garnet, which would be in the tails after extraction of the fluorite, tungsten etc.
• Look to marketing the tungsten and fluorite to consumers who are seeking to gain independence from the erratic Chinese supply and cost situation.
• Complete BFS and commission an open-cut mining and processing operation.

Figures

Mineralization and Target Overview at Moina 109 kb PDF enlargement