A proven, high grade magnesite ore deposit on and adjacent to the Deer Trail mine property in Stevens Cty., Wash., has been rediscovered, L. George Reynolds, chairman of Cortez International, has announced. He says mining of the magnesite is expected to begin this year.
Magnesite reserves of 2.2 million short tons containing more than 48% of magnesia and less than 5% lime have been drill-proven, he says. The magnesite orebody was core-drilled and described in 1943 by the department of conservation, division of geology, state of Washington. Kevin O’Flaherty, Cortez’ geological engineer, explains that this represents about 800,000 tons of magnesia, or about 500,000 tons of metallic magnesium.
At current U.S market prices of $1.53 per lb of metallic magnesium, the drill-proven orebody has a gross value exceeding $1.5 billion(US) and an estimated minimum net value of $450 million. The geologically inferred reserves of an additional 20 million tons would have a net value of $400 million if used for agricultural purposes only, the company says.
Magnesite is used in medicine, animal feed, the chemical industry, fertilizers, fire bricks, steel manufacture, magnesium metal, alloys and many other uses.
Cortez International trades on the Alberta exchange and on NASDAQ.
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