Mineral Resources revs up Cassiar asbestos plant

After a 6-year production hiatus, the Cassiar asbestos project in British Columbia is ready to begin producing chrysotile fibres once again.

Operator Mineral Resources (MIC-T), which holds a 100% interest in the project, anticipates startup in July, at a rate of 1,000 tonnes per month. A total of 4,000 tonnes of chrysotile fibre is expected to be produced before the wet processing plant is shut down for the winter (the plant is currently unequipped for winter weather).

The Cassiar mine was christened in 1953 as an open-pit operation and continued as such until 1990, when reserves were exhausted. In 1990, then-owner Princeton Mining (PMC-T) elected to switch to underground mining at the adjacent McDame deposit, but was unable to raise the necessary development capital to make the transition an economic success. The operating company, Cassiar Mining (a subsidiary of Princeton) was forced into receivership by the provincial government in 1992.

The rights to the deposit and tailings dump were acquired by Cliff Resources (which became Mineral Resources in a share-for-share name change in 1995) at a liquidator’s auction in 1992. Mining and exploration licences, as well as certain property and equipment, were also part of that deal.

Tailing resources at the site are estimated at 16 million tonnes grading 4.4% chrysotile fibre, while underground resources are pegged at 30 million tonnes grading 15% chrysotile. Only the former resource is factored into Mineral Resources’ current production plan.

To treat the tailings, the company will use wet processing technology adapted from Australian coal and Newfoundland asbestos reclamation projects.

Commissioning of a pilot plant took place last October, but the late-season start meant the plant could only operate for one week. In the ensuing months, technical problems were overcome at the Centre de technologie minerale et de plasturgie at Thetford Mines, Que. by project management and Kilborn Engineering.

Currently, the company is processing the tailings from the reclaim pipe.

Equipment designed to expand the pilot plant to 1,000 tonnes per month is expected to arrive at the site shortly.

The processed asbestos fibers will be shipped to Southeast Asia by way of a previously arranged marketing agreement with the Japan-based trading company Kakiuchi. The agreement originally covered two years but was recently extended to five, with possibilities of further extensions.

It is hoped that the new arrangement will facilitate future financings for a $22.9-million expansion aimed at boosting annual production to 50,000 tonnes by 2000. Construction of the expanded plant is scheduled for September of this year.

Mineral Resources has a working capital deficit of $1.6 million. For the three months ended March 31, the company lost $700,000, compared with a loss of $800,000 in the corresponding period of 1997.

In June, the company expects to complete a share offering worth between $2 million and $3 million. This will add to a $2-million offering closed earlier this year.