In connection with planning of efficient mineral processing related to Nordic Mining's rutile project (TiO2) at Engebøfjellet, beneficiation tests have been executed at NTNU in Trondheim and at Outotec. Outotec is a leading international supplier of technology for minerals processing. The tests indicate that it will be possible to produce high quality garnet concentrate in addition to titanium feedstock (TiO2 concentrate) based on the Engebø mineral resource. The garnet at Engebø is almandine which is considered the most attractive in the market.

 

Garnet is an industrial mineral mainly used for sandblasting and water-jet cutting of metals and other materials. The market for garnet products is growing, and the global market is estimated to about 1 million tons per year. The price of high quality garnet for industrial use in Northern Europe is in the range of NOK 2,000 - 3,000 per ton. Special qualities can reach a price level of NOK 8,000 per ton.

 

Preliminary tests have demonstrated production of 96% garnet concentrate from the Engebø mineral resource. Nordic Mining's target for further optimization of the beneficiation process is to reach a level of 98% for the garnet concentrate.

 

"Provided satisfactory market terms, production of high-quality garnet concentrate will add positively to the profitability of the Engebø project", comments VP Commercial Ottar Nakken, project manager for the Engebø project. "The quality of the garnet mineral, the potential for concentration to attractive levels as well as the size of the mineral deposit might give Nordic Mining a significant position in markets for industrial garnet. Consequently, we will onwards include garnet products as an integrated part of the project. Preliminary market contacts indicate significant interest for garnet of the quality we can produce at Engebø", says Ottar Nakken.

 

For questions please contact VP Commercial Ottar Nakken on telephone +47 - 928 91 780.

 

 

Oslo 23 April 2008