Orocobre Limited: Borax Plant Relocation Update
March 18 2014 - 8:27AM
Marketwired
Orocobre Limited: Borax Plant Relocation Update
BRISBANE, AUSTRALIA--(Marketwired - Mar 18, 2014) - Orocobre
Limited (ASX:ORE) (TSX:ORL) ("Orocobre" or "the Company") is
pleased to advise progress on the relocation of the borax chemical
plant.
- Dismantling of existing equipment at Campo Quijano is 92%
complete
- Installation of new equipment at Tincalayu is 85% complete
- The project continues to progress on time and within budget
with 70% of the budget spent or committed
The project is about to enter into the final quarter of the
relocation and construction programme with the target completion
date being the end of June 2014.
To view an image of the Tincalayu Site, please visit the
following link: http://media3.marketwire.com/docs/933980A.pdf
The following is a summary of what has been achieved to
date:
- Complete Engineering Design
- Repair and maintenance of existing equipment at Tincalayu, 73%
complete
- Civil work at Tincalayu, 89% complete
- Dismantling of existing equipment at Campo Quijano, 92%
complete
- Repair and maintenance of equipment at Campo Quijano commenced
in January and is 44% complete
- Construction and installation of new equipment is 85% complete
which includes the installation of the:
- Dissolver (86%)
- Overflow tanks (92%)
- Hot air generator (57%)
- Decanters (82%)
- Generators (93%)
- Centrifuges (86%)
- Electrical works (86%)
- The flocculant plant is 54% complete
The project continues to progress on time and within budget with
70% of the budget spent or committed.
To view the images accompanying this section of the
announcement, please visit the following link:
http://media3.marketwire.com/docs/933980B.pdf
The relocation of the borax plant to the Tincalyu mine site will
have significant benefits through both the reduction of operating
unit costs and also increasing overall mineral recovery from the
mine. Historically, run-of-mine ore at 17% B2O3 has been
concentrated at Tincalayu using dry magnetic separation to produce
a 21% grade which is then transported 350 kms from Tincalayu to
Campo Quijano for production of borax chemicals. Recovery through
the dry magnetic separation plant has previously been only
approximately 60%. When the borax plant relocation to the Tincalayu
mine site is complete the borax plant will treat run-of-mine ore
without the use of the magnetic separation plant. This will result
in:
- no loss of mineral content prior to the borax plant as there
will be no concentration stage
- removal of the operating costs of the dry magnetic separation
concentration stage
- improvement in the freight cost profile by cartage of finished
products with grades between 37% and 49% B2O3 as opposed to a 21%
grade concentrate.
The capital budget for the project is US$3.7m net of existing
plant and equipment.
About Orocobre Limited
Orocobre Limited is listed on the Australian Securities Exchange
and Toronto Stock Exchange (ASX:ORE) (TSX:ORL), and is building a
substantial Argentinian-based industrial minerals company through
the construction and operation of its portfolio of lithium, potash
and boron projects and facilities in the Puna region of northern
Argentina. The Company is building in partnership with Toyota
Tsusho Corporation the first large-scale, "greenfield" brine based
lithium project in 20 years at its flagship Salar de Olaroz
resource, with projected production of 17,500 tonnes per annum of
low-cost battery grade lithium carbonate scheduled to commence at
the end of Q2, 2014. The Company also wholly-owns Borax Argentina,
an important regional borate producer. Orocobre is included in the
S&P/ASX 300 Index and was named 2012 Mining Company of the Year
by Argentine mining magazine Panorama Minero and the Fundacion para
el Desarrollo de la Mineria Argentina ("Fundamin" or Foundation for
Development of Argentina Mining). For further information, please
visit www.orocobre.com
Caution Regarding Forward-Looking Information
This news release contains "forward-looking information"
within the meaning of applicable securities legislation.
Forward-looking information contained in this release may include,
but is not limited to, the draw down of finance for the Olaroz
Project, the completion of construction at the Olaroz Project and
the timing thereof, the commencement of commercial production at
the Olaroz Project and the timing thereof, the cost of construction
relative to the estimated capital cost of the Olaroz Project, the
design production rate for lithium carbonate and potash at the
Olaroz Project, the expected brine grade at the Olaroz Project, the
expected operating costs at the Olaroz Project and the comparison
of such expected costs to expected global operating costs, and the
ongoing working relationship between Orocobre and the Province of
Jujuy.
Such forward-looking information is subject to known and
unknown risks, uncertainties and other factors that may cause
actual results to be materially different from those expressed or
implied by such forward-looking information, including but not
limited to the risk of further changes in government regulations,
policies or legislation; the possibility that required concessions
may not be obtained, or may be obtained only on terms and
conditions that are materially worse than anticipated; the risk
that the conditions precedent to draw down the project financing
with Mizuho Corporate Bank will not be met; that further
funding may be required, but unavailable, for the ongoing
development of the Company's projects; fluctuations or decreases in
commodity prices; uncertainty in the estimation, economic
viability, recoverability and processing of mineral resources;
risks associated with weather patterns and impact on production
rate; risks associated with construction and development of the
Olaroz Project; unexpected capital or operating cost increases;
uncertainty of meeting anticipated program milestones at the Olaroz
Project; general risks associated with the feasibility and
development of the Olaroz Project; as well as those factors
disclosed in the Company's Annual Report for the year ended June
30, 2013 filed at www.sedar.com.
The Company believes that the assumptions and expectations
reflected in such forward-looking information are reasonable.
Assumptions have been made regarding, among other things: the
timely receipt of required approvals and completion of agreements
on reasonable terms and conditions; the ability of the Company to
obtain financing as and when required and on reasonable terms and
conditions; the prices of lithium and potash; and the ability of
the Company to operate in a safe, efficient and effective manner.
Readers are cautioned that the foregoing list is not exhaustive of
all factors and assumptions which may have been used. There can be
no assurance that forward-looking information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such information. Accordingly,
readers should not place undue reliance on forward-looking
information. The Company does not undertake to update any
forward-looking information, except in accordance with applicable
securities laws.
Australia and AsiaDavid HallBusiness Development ManagerOrocobre
Limited+61 7 3871 3985 or M: +61 407 845 052dhall@orocobre.comNorth
AmericaJames CalawayChairmanOrocobre Limited+1 (713) 818
1457jcalaway@orocobre.com
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