Orleans starts study of wollastonite play

A feasibility study has been commissioned for Orleans Resources’ (ME) St. Onge Twp. wollastonite property near Lac St. Jean, Que.

The decision was made following the release of a prefeasibility study by Kilborn Tecsult, which estimates capital costs at $22-25 million. The payback period is calculated to be 4.5 years, with an expected rate of return of 20%. Although the deposit has more than 100 years of reserves, the study only covers a 20-year period and assumes that Orleans’ market penetration will average 3.5% of world wollastonite consumption. At present, most major wollastonite producers have a market share ranging from 8% to 20%. At the pilot plant, work is aimed at increasing the recovery of wollastonite concentrates with a high purity and aspect ratio. The plant is expected to start producing specific products within the next few weeks. The feasibility study, which will also be carried out by Kilborn, is expected to be completed by the end of the summer. Orleans hopes to have the deposit in production by 1996.

Probable and possible reserves are estimated at 27 million tonnes grading 37% wollastonite.