Uganda vermiculite mine to start

Jan. 29, 2010
East African Vermiculite's (EAV's) operation in Uganda is moving towards recommissioning its pilot project and production is expected in the first quarter of this year, the company says.
EAV is a subsidiary of Australian mining junior Gulf Resources. The manufacture of new screens, a hopper feeder and a jaw crusher is complete and the items are now en route to the East African country.
A 20-t bulk sample of vermiculite has been received by Grace Specialty Vermicu-lite, part of US industrial corporation WR Grace. Initial discussions on the potential to distribute product from the project has been positive.
WR Grace's speciality vermiculite division is one of the largest vermiculite exfoliators and distributors in the US, accounting for at least one-third of vermiculite sales in North America.
An agreement has been reached with East Africa-based freight and logistics company SDV Transami for the management and logistics of all concentrate production to and from the project in Uganda.
Gulf Resources COO Andrew Johnstone reports that, given the size and reach of this logistics group, Gulf Resources is jointly investigating options to reduce freight costs for its operation.
The group also offers sea freight management for potential customers, enabling a fully integrated freight solution from mine to any customer in the world.
The EAV tenement package, including the mining lease, covers a large portion of the Bukusu Complex, one of Africa's largest carbonatite complexes.
Johnstone adds that, during a recent data review, the Gulf exploration team identified historical information relating to a phosphate mine operated on the complex from 1944 to 1963. Further investigation has revealed the mine was located only 3 km from its existing vermiculite operations. Gulf has conducted a preliminary assess- ment of the phosphate location and found a large excavation and some remnants of concrete footings from old mine and plant buildings. A independent assessment has been commissioned and the results are pending.
He notes that early indications from historical documents suggest phosphate grades were economic, supporting a profitable operation for nearly 20 years.
The Bukusu Complex also has potential for a number of other commodities, including rare earth elements and plans are being made to reprocess a recent Rio Tinto geochem survey and collect new data to assess the complex for other mineral potential.
The EAV operation is situated in eastern Uganda, near the towns of Mbale and Tororo, close to the Kenyan border.
The vermiculite deposit extends from near surface to a depth of between 45m and 55m and is excavated using off-the-shelf mechanical excavating equipment in a standard shallow openpit operation.
EAV currently anticipates production for the first year of steady-state operations will be 10,000t/y, building up to 16,000t/y.
Gulf has already signed an offtake agreement for 5,000 t of production and is currently negotiating with a number of other potential customers.
Vermiculite's main commercial uses include high-temperature insulation, refractory insulation, and fireproofing of structural steel and pipes.