Atacama speeds up expansion

Vancouver — With its Aguas Blancas iodine mine in Chile running smoothly, Atacama Minerals (AAM-V) is arranging a US$3.5-million revolving credit facility to boost production.

The credit facility will cover the first phase of the iodine expansion program and initial production of nitrates and sulphates.

The expansion calls for an increase in annual production to 1,100 tonnes this year, increasing to 1,500 tonnes by the first quarter of 2003.

The expansion phase will entail replacing diesel-generated power with electricity from the Chilean national grid in order to slash long-term operating costs.

Already, construction has begun on a series of evaporation ponds. The result will be the production, starting in 2003, of 50,000 tonnes of nitrates and 50,000 tonnes of sulphates.

In January, just short of a year after construction began, annual production reached 720 tonnes of iodine.

Minable reserves total 44.6 million tonnes grading 512 grams iodine per tonne, 2.87% nitrate and 22% sodium sulphate.

The project is in the Atacama Desert, 100 km from Antofagasta. Atacama Minerals has a half-interest in the project; ACF Minera, the operator, has the remaining half.