Suppliers News (October 09, 2006)

BioteQ signs development deal with Codelco

Vancouver-based BioteQ Environmental Technologies (BQE-V, BTQNF-O) will develop water treatment and metal recovery technology with Chile’s Institute for Innovation in Mining and Metallurgy, a subsidiary of Chile’s Codelco.

If laboratory test work proves that the metal recovery technology works on an industrial level, Codelco will put it to work in its Andina copper mine, situated near Santiago, Chile.

The same metal recovery technology is being used at a plant in Bisbee, Ariz., where Phelps Dodge (PD-N) once operated a copper mine.

At Andina, BioteQ’s technology would recover copper from both heap-leach solutions and acid mine drainage. In this case, BioteQ will look at using ion-exchange technology to reduce concentrations of sulphate discharged into the environment. Chile’s environmental regulations require that wastewater released into the environment contain less than 1,000 milligrams of sulphate per litre.

The Andina copper mine produces about 250,000 tonnes of copper concentrate per year and also recovers copper from low-grade stockpiles using leaching, followed by solvent extraction- electrowinning.

Codelco Chile is the world’s largest copper producer, with about 20% of global copper reserves. Codelco shipped 2 million tonnes of copper in 2005 from its four divisions.

Aber buys more Harry

Aber Diamond (ABZ-T, ABER-Q) has completed the US$157-million buy-out of its minority partners in famed jeweller Harry Winston, boosting its ownership to 100% from 53%.

Aber is financing the purchase through its existing cash and an extended credit line. Aber’s borrowings now include a term loan of US$100 million, which has a final maturity date of June 2008.

The diamond miner bought its initial 51% stake in Harry Winston in April 2004 for US$85 million. That original deal had included an option allowing Aber to buy the rest of Harry Winston in 2010.

Since Aber’s initial investment, Harry Winston sales have grown from about US$128 million for the full 12 months of fiscal year 2004 (including two months prior to Aber’s acquisition), to US$191 million for fiscal 2006.

“The past two and half years have demonstrated the tangible benefits of linking the marketing of rough diamonds to a high-end diamond retailer in the form of improved margins at both ends of the business,” said Robert Gannicott, Aber chairman and CEO in a statement.

“We are now able to expand at a pace consistent with the opportunities of the marketplace,” added Thomas O’Neill, Aber’s president and CEO of Harry Winston. “This enables us to open new stores at an aggressive pace, as well as refurbish our existing store network. We plan to strengthen our product development, increase our manufacturing capabilities, and improve management efficiencies across the businesses.”

Aber is enjoying considerable cash flow these days thanks to its 40% ownership in the rich Diavik diamond mine in Canada’s Northwest Territories.

Cancor goes with SNC for Explo-Zinc study

The engineering arm of SNC-Lavalin (SNC-T) will conduct a feasibility study on the Explo-Zinc deposit, part of the Kistabiche project, which is 50% owned by Montreal-based Cancor Mines (KCR-T, CAOMF-O).

The feasibility study will examine ways to get the most out of the deposit.

Explo-Zinc was discovered in 1963 by Consolidated Northern Exploration. The company drilled the deposit and determined it contained geological resources of 1.06 million short tons, grading 7.13% zinc, 0.69% copper and 31 grams silver per ton. The estimate does not comply with National Instrument 43-101.

Cancor has since drilled three more holes and sent the core samples for metallurgical and geomechanical tests. The company says the samples confirmed the deposit’s historical grades and data.

Kistabiche covers 17.3 sq. km, located near Joutel, Que., in the Abitibi region.

The property includes a 389-metre deep shaft and drifts on three levels. The company says it would process any ore at existing mills in the area.

Soquem, a wholly owned subsidiary of Socit gnrale de financement du Qubc, owns the other half of the Kistabiche project.

SNC-Lavalin has offices across Canada and in 30 other countries.