Feb. 15, 2011 - Geovic Mining Corp. announces that its subsidiary Geovic New Caledonia SAS (GNC) has been granted exclusive exploration licenses in New Caledonia, a French overseas island territory in the South Pacific. These licenses will enable the Company to evaluate the quality and extent of promising chromite-rich heavy mineral beach sand deposits in a program expected to commence later this year.
In the past year, more than 400 samples were collected from areas covered by the PMAs, and the prospects were ranked according to development potential. Based on these results, GNC submitted exploration license applications for areas deemed to be the most prospective, and was recently awarded a total of 31 licenses: 12 exploration licenses comprising 40 square kilometers in North Province and 19 Licenses comprising 60 square kilometers in South Province.
The onshore prospecting program carried out thus far has resulted in the discovery of several potentially large-tonnage high-grade chromite accumulations. In some of these areas, chromite concentrations exceed 50% of the total sand grains present.
In preliminary metallurgical test work, the chromite was found to be easily concentrated by conventional gravity, magnetic and electrostatic separation, and many concentrate assays exceeded 54% Cr2O3, well above global averages. Additionally, bulk sample test work indicates that premium grade chromite can be produced from multiple sites tested thus far.
The principal source of chromium metal is chromite. The world chromite market consumes over 22 million tonnes of chromite per year (2008), greater than 90% of which is consumed as ferrochrome, mostly dedicated to stainless steel production. Chrome content in stainless steel ranges from about 13-20%. Demand for stainless steel is expected to increase significantly. Premium quality foundry grade chromite sand is the preferred casting media for production of metal castings.
Environmental baseline studies are being initiated to establish site specific impacts and mitigation requirements prior to drilling. Subsequently, following regulatory approval to commence exploration, onshore and offshore drill campaigns are planned to assess the quality and extent of chromite deposits on the exploration licenses. The initial drilling program is targeted to commence in the second half of 2011 and continue into 2012, at which point we anticipate that resources will be estimated.
John Sherborne, President of Geovic New Ventures, comments: "The award of exploration licenses culminates several years of prospecting work in New Caledonia. We believe the potential exists for an economically viable, world-class chromite deposit, and the upcoming work program will be an important first step in establishing the parameters for such a project."
In the past year, more than 400 samples were collected from areas covered by the PMAs, and the prospects were ranked according to development potential. Based on these results, GNC submitted exploration license applications for areas deemed to be the most prospective, and was recently awarded a total of 31 licenses: 12 exploration licenses comprising 40 square kilometers in North Province and 19 Licenses comprising 60 square kilometers in South Province.
The onshore prospecting program carried out thus far has resulted in the discovery of several potentially large-tonnage high-grade chromite accumulations. In some of these areas, chromite concentrations exceed 50% of the total sand grains present.
In preliminary metallurgical test work, the chromite was found to be easily concentrated by conventional gravity, magnetic and electrostatic separation, and many concentrate assays exceeded 54% Cr2O3, well above global averages. Additionally, bulk sample test work indicates that premium grade chromite can be produced from multiple sites tested thus far.
The principal source of chromium metal is chromite. The world chromite market consumes over 22 million tonnes of chromite per year (2008), greater than 90% of which is consumed as ferrochrome, mostly dedicated to stainless steel production. Chrome content in stainless steel ranges from about 13-20%. Demand for stainless steel is expected to increase significantly. Premium quality foundry grade chromite sand is the preferred casting media for production of metal castings.
Environmental baseline studies are being initiated to establish site specific impacts and mitigation requirements prior to drilling. Subsequently, following regulatory approval to commence exploration, onshore and offshore drill campaigns are planned to assess the quality and extent of chromite deposits on the exploration licenses. The initial drilling program is targeted to commence in the second half of 2011 and continue into 2012, at which point we anticipate that resources will be estimated.
John Sherborne, President of Geovic New Ventures, comments: "The award of exploration licenses culminates several years of prospecting work in New Caledonia. We believe the potential exists for an economically viable, world-class chromite deposit, and the upcoming work program will be an important first step in establishing the parameters for such a project."
