Fluorite benefits from ozone fears

The planned phasing out of chlorofluorocarbons (CFCs) by the year 2000 or earlier has prompted a number of companies to begin exploring and developing fluorite deposits.

Fluorite, also known as fluorspar, has a number of uses depending on its grade. Fluorite ore is generally concentrated using flotation, yielding 60% to over 97% calcium fluorite depending on metallurgy.

Acid grade fluorspar, containing a minimum of 97% calcium fluoride, is of principal interest because of its use in the manufacture of hydrofluoric acid. Hydrofluoric acid is used in the manufacture of hydrofluorocarbons (HFCs) and hydrochlorofluorocarbons (HCFCs), both of which have similar properties to CFCs, but do not contribute to ozone depletion.

The manufacture of HFCs and HCFCs requires about twice the amount acid-grade fluorspar, and as a result, producers are predicting a big jump in fluorite demand.

The market for acid-grade fluorspar in the U.S. totalled about 600,000 tons in 1991, about half of which was supplied by Mexico.

Du Pont expects to be producing about 125 million lb. of HFC compounds by 1993, principally for use as refrigerants.

Silverspar Minerals (VSE) is developing a large acid-grade fluorite deposit in La Paz Cty., Ariz.

Reserves on the property were last estimated at about 1.8 million tons grading 14% fluorite contained in a larger reserve of 4 million tons grading 5 oz. silver per ton.

Recent stepout drilling on the property returned a number of wide, high-grade intersections and Silverspar expects reserves to increase as a result. The company is currently conducting metallurgical testing and is in the process of raising US$10 million through the issuance of one million shares to fund additional feasibility work.

Peter Fox, a director, said the company hopes to be in production by 1994. Both Verdstone Resources (VSE) and American Bullion Minerals (VSE) recently announced unrelated acquisitions of fluorite properties.

American Bullion can earn a 100% interest in the Clearwater property north of Kamloops, B.C., by making staged option payments totalling $210,000 over 24 months. The vendor is also entitled to a 1.5% production royalty. Previous drilling in 74 holes outlined a preliminary open pit reserve of about 2.3 million tons grading 21.3% fluorite.

American Bullion sees additional reserve potential in a number of other mineralized zones on the property as well as in a lower fluorite horizon intersected by a single hole which encountered 54 ft. grading 20% fluorite. The company reports that the fluorite appears to be capable of producing acid-grade fluorspar.

John Brock, president, said the company plans to do further drilling to the north and downdip, to fully delineate reserves. In addition, he said a bulk sample from drill core and trenching will be compiled for metallurgical testing.

The company also hopes to extract celestite as well as rare earth oxides from the fluorite zone. The two products are used by the high technology, electronics and ceramics industries.

Brock said baseline environmental studies, as well as marketing and prefeasibility studies, should be completed by year-end at an estimated cost of under $1 million.

American Bullion currently has about $300,000 in working capital which Brock said is enough to get started while additional financing is arranged. Verdstone purchased two fluorite properties in British Columbia and is negotiating to acquire a past producer in Nevada.

The company purchased a 100% interest in the “Fluorite” claims south of Chase, B.C., for 25,000 treasury shares and a 100% interest in the Gloria Rose property near Vernon, B.C., for 45,000 treasury shares. The known fluorite occurrence at the Fluorite claims is in late-stage hydrothermal veins over a strike length of about 1,600 ft. The veins are reported to grade up to 80% fluorite.

Fluorite mineralization on the Gloria Rose property is described as widespread, with two recently discovered zones grading up 60% fluorite. The former producing fluorite mine in Nevada produced more than 180,000 tons grading 46% fluorite and Verdstone is now seeking joint venture partners to explore the properties.