Calgary-based Siam Trading (ASE) has signed a joint venture agreement to develop and mine a kaolin deposit situated about 150 km east of Bangkok, Thailand. The company has obtained a 10% working interest and an option to acquire a further 5% interest in the project from Liam Pichai Mining, a buying agent for Siam City Cement. Reserves for the deposit stand at five million tons of kaolin based on 30 test holes. Land acquisition and the first stage of development will cost Siam $80,000 for its interest in the joint venture.
The project will be developed in three stages over 18 months with an initial mining rate of 20,000 tons per month, increasing to 30,000 tons per month. This will be followed by construction of a washing and treating plant and mining of 40,000 tons per month. Treated kaolin currently sells for $95 per ton, and the company expects combined revenue of nearly $3.8 million from the project.
John Woods, president of Siam, said “the joint venture holds substantial profit potential considering the booming construction industry in Thailand and Southeast Asia.”
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