Interesting read - our time is slowly approchingThermal Fragmentation..a multi-billion dollar market
Article:
Since the time of conception surrounding the technology of a thermalfragmentation process to exploit narrow high-grade precious metal veins,Rocmec's objective has always been to implant it within the entire miningindustry, targeting the Canadian market first, followed by our neighbours to thesouth.
The thermal fragmentation process is already at work at the Rocmec 1 mine,located 35 kilometres west of Rouyn-Noranda in the Abitibi region of Quebec. Thetechnology has proven itself and a mine visit by mining industry representativesis all it takes. Many have decided to see for themselves and were absolutelyamazed by the results. "What the representatives notice first and foremost isthat the technology is mechanized, an important cost savings advantage. Also,the concept of a programmable automat replaces the physical work of a miner todynamite the rock, explains Donald Brisebois, president and CEO of the company,he adds, that the thermal fragmentation process can operate in confined areas,taking out only the mineralized ore, leaving behind the waste rock that wouldotherwise be mixed with the precious metal."
Current negotiations
"We are currently in discussions with a few potential partners. We will alsobe setting up a sales team and a subsidiary that will be named RocmecTechnologies and wholly owned by Rocmec Mining Inc. Its mandate will be tosecure contracts that will offer services, supervision and thermal fragmentationknow-how", stated Mr. Brisebois.
Canada-United States
Rocmec is convinced that it will establish partnerships within a year or two.Discussions are currently underway in the United States with a company that ownsfive mining sites that are amenable to thermal fragmentati on. According to Mr.Brisebois, during the 1930's-1940's many mining companies did a great deal ofexploitation work and later had to cease operations because of the hugequantities of waste rock. With thermal fragmentation, the problem is solved, andthat is the reason why Mr. Brisebois strongly believes that many partnershipswill be created over the next two years.
Foreign markets
Once Rocmec signs its first partnership agreements with Canadian and Americanmining companies, it will focus its attention on foreign markets. In one sense,the process started last year when Rocmec was granted a patent for South Africa."After Canada, it is the second most important patent for the development of thetechnology. There are numerous narrow-vein deposits in South Africa that can beexploited with thermal fragmentation", asserted Mr. Brisebois.
Not only is gold abundant in South Africa, but also phenomenal quantities ofother precious metals such as palladium and platinum. South Africa is host tothe most important mining companies, representing a multi-billion dollar marketfor Rocmec. "Each of these companies can have 30 mines operating with verylittle mechanization, explains Mr. Brisebois. That is where thermalfragmentation can play a very important role."
Australia and Mexico are two other countries where Rocmec plans onestablishing partnerships. Other countries located in South America wherepatents have been filed, Brazil for example, are also on the list.
Resources doubled
Last year, Rocmec invested approximately 5.2 million dollars in explorationat its mine located close to Rouyn-Noranda. It is the final phase of developmentbefore entering into production. During last December, the company had alreadypoured a gold bar weighting 617 ounces. "We have doubled our mineral resourcesfrom 277,000 to 534,000 gold ounces from within five different veins and we arevery proud of the results of the last 12 months", stated Mr. Brisebois.
When the mine was b rought into in production during the 1980's theactivities were uneconomical, in the literal sense of the term. In acquiring themine in October 2005, Rocmec's objective was to demonstrate to the miningindustry that thermal fragmentation was a cost-effective way to render theoperations profitable. It is a success. "Individuals involved in the industryare somewhat conservative and need to see with their own eyes how they canincrease the return on their investments, mentioned Mr. Brisebois. Ourtechnology has been in operation for the past few quarters; the results speakfor themselves, reassuring everyone."
Rocmec 1 contains very important gold grades. There is no dilution. "All thisis very special to the mining industry because normally, companies spendenormous amounts on development", added Mr. Brisebois.
Exclusive marketplace
Rocmec is the only company in the world to offer its technology. Patentrequests have been filed in countries where mining companies would be likely touse thermal fragmentors. "Each unit takes about twelve weeks to build. However,we are currently negotiating with a company specialized in building miningequipment to reduce the delay to between eight and ten weeks. Considering thatthe unit is quite simple to operate, there is no need for a specializedwork-force, training usually takes less than three weeks", states Mr. Brisebois.
Objective: Major Producer
According to Mr. Brisebois, Rocmec's growth is intimately tied to itstechnology, its services and its revenues. "That is why it is so important totransform a company with hardly any revenues into a company that is profitable.Our objective is to further the development of the mining industry by increasingits mechanisation", he said.
Rocmec employs about 40 people, and the Rouyn-Noranda mine operates 7 days aweek, 24 hours a day. Even though thermal fragmentation and partnerships are thedriving forces behind Rocmec, the company plans on remaining quite active in theacquisition market. For Mr. Brisebois, when one takes into account the changeswithin the industry over the past years, this vision is paramount. "In ouropinion, many deposits could be better developed by smaller companies, and thatexplains our vigilance, mentions Mr. Brisebois. We are aware of the propertiesthat are available and on the look-out for another mine similar to Rocmec1 orbetter, at a reasonable price."
For the moment, our objective at Rocmec 1 is to produce between 35,000 and40,000 gold ounces per year, returning net revenues in the order of 5 to 6million dollars. By acquiring two or three additional properties, Rocmecestimates that would be able to increase production to attain 150,000 to 200,000gold ounces per year, making it an important producer in the industry.
Rocmec Mining Inc.
1, Holiday Avenue, suite 501
East Tower
Pointe-Claire, Quebec, H9R 5N3
Ph: 514-428-4185
Fax: 514-630-6989
Toll Free: 1-888-576-2632
www.rocmecmines.com