InterStar plans to build African manganese mine

Toronto-based Starrex Mining (TSE) and Phoenix Canada Oil, through their jointly owned affiliate InterStar Mining Group (CDN), have signed a deal with the Burkina Faso government to develop the high-grade manganese deposit in west Africa.

The Tambao deposit contains over 13 million tons of proven and developed reserves grading 49.85% manganese oxide per ton, according to InterStar which has provided for a 20% dilution and mining losses in its calculations. The company says about 50% of the reserves within the 18,000-acre contract area grades over 55% manganese. Located about 90 miles from a railway constructed with financial assistance from the Canadian International Development Agency (CIDA), the Tambao deposit is predicated on a massive exposed outcrop rising from the level regional and local terrain. InterStar says it plans to use selective mining techniques to extract higher-grade mineralization from benches cut into the exposed outcrop. According to the company’s feasibility study, a capital investment of $15 million is needed to mine and transport the ore at a rate of 75,000 tons annually to the coast.

If another $94 million was spent to extend the railroad for another 85 miles, the operation could be expanded to 400,000 tons annually by 1995-96, the company says.

Manganese is used as a strengthening ingredient in the manufacturing of steel. Due to a drop in production within the Soviet Union, the market price for manganese has risen to around US$3.95 per long ton unit from US$1.32 (a unit consists of 1% manganese). InterStar says earth moving and transportation equipment is already on the project site and work crews are ready to begin processing trial shipments of talus ores for market specification tests.

Starrex President Donald Moore described the development process as “a transportation logistics problem which is being worked on.” He expects the project to be in production early next year.

InterStar Mining is held 32.82% by Starrex and 30.63% by Phoenix Canada Oil.


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