Leader Mining Selects Contractors for Cogburn Magnesium Production Feasibility Study
VANCOUVER, British Columbia--Feb. 13, 2002-- Leader Mining (CDNX:LMN)(OTCBB:LDRMF) has selected well qualified and experienced independent contractors to advance the Cogburn Magnesium Project through a Production Feasibility Study.The Study, which has commenced, is to be completed by mid-December 2002 for a quarry and integrated processing plant to produce 120,000 metric tons per year of high-quality magnesium metal. The Study contractors will report directly to John A. Chapman, B.Sc., P.Eng., FCIM, Acting Project Manager, under a time and budget schedule approved by Leader Mining's Cogburn Magnesium Project, Senior Advisory Group. HATCH Associates Ltd. will conduct a substantial portion of the Study engineering and metallurgy. HATCH will also sign-off on the final Production Feasibility Study.
-------------------------------- ------------------------------------ Deposit Drilling Programs Crest Geological Consultants Limited, Coquitlam, B.C. -------------------------------- ------------------------------------ Resource & Reserve Determination Geospectrum Engineering, Abbotsford, B.C. -------------------------------- ------------------------------------ Plant Site Selection Merit Consultants International Inc., Vancouver, B.C. www.meritconsultants.net Melvin Smale, Mission, B.C. -------------------------------- ------------------------------------ Quarry Mining & Ore Emil Anderson Construction Co. Ltd., Transportation Hope, B.C. www.eac.bc.ca Geospectrum Engineering, Abbotsford, B.C. -------------------------------- ------------------------------------ Environmental & Permitting Lorax Environmental Services Ltd., Vancouver, B.C. www.lorax.bc.ca -------------------------------- ------------------------------------ Geotechnical Jacques Whitford Group of Companies, Vancouver, B.C. www.jacqueswhitford.com -------------------------------- ------------------------------------ Power Lines & Power Sub-Station Ian Hayward International Ltd., Surrey, B.C. -------------------------------- ------------------------------------ Ore Processing & Metal HATCH Associates Ltd., Montreal, Quebec Production www.hatch.ca -------------------------------- ------------------------------------ Tailings Facilities Knight Piesold, Vancouver, B.C. www.knightpiesold.com -------------------------------- ------------------------------------ Infrastructure HATCH Associates Ltd., Vancouver, B.C. -------------------------------- ------------------------------------ Socio-Economic Impacts Sveinson Mineral Services Inc., Vancouver, B.C. Jo Harris & Associates, Victoria, B.C. -------------------------------- ------------------------------------ Marketing & Off-Take Contracts Butterfield Mineral Consultants, West Vancouver, B.C. (not independent as Jack Butterfield is a Member of the Senior Advisory Group) -------------------------------- ------------------------------------ Electric Power & Natural Gas Intuit Strategies Inc., Contracts Vancouver, B.C. -------------------------------- ------------------------------------ Economic Valuation Glanville & Associates, Vancouver, B.C. HATCH Associates Ltd., Vancouver, B.C. -------------------------------- ------------------------------------ Owner's Designated Merit Consultants International Representatives Reviewing all Inc., Aspects of Proposed Capital Vancouver, B.C. and Operations www.meritconsultants.net Melvin Smale, Mission, B.C. -------------------------------- ------------------------------------ Monitoring of all Feasibility HATCH Associates Ltd., Study Sub-Contractors and Vancouver, B.C. and Montreal, Quebec Compilation and Delivery of Final Study -------------------------------- ------------------------------------
The Cogburn Magnesium Deposit is a large ultramafic intrusive body containing consistently high-grade magnesium silicate (+25% magnesium). The discovery, made in June 2001, is located 115 kilometres east of Vancouver, British Columbia, Canada near the town of Hope. The deposit has a significant infrastructure advantage in that high-capacity grid electric power, high-pressure mainline natural gas, mainline rail, provincial highways and barge access to nearby deep-sea ports are all adjacent to the property. In addition, the project is located in a historic mining and forest products extraction region with extensive supporting skilled labour and a broad spectrum of service industries.
The enriched Emory Zone (approximately +26% magnesium) extends over a one kilometre square area, within the ten kilometre by two kilometre surface exposure of the main ultramafic intrusive body. A composite surface sample, extracted from outcrops exposed along new logging road cuts within the Emory Zone, was tested for hydrochloric leach extraction of magnesium followed by purification and filtration by Process Research ORTECH Inc. under the direction of HATCH. Successful testing resulted in scoping level activities during the summer of 2001, culminating in the completion of a Scoping Study by HATCH in October. The Study determined that the Cogburn deposit because of its large size, high magnesium grade, low impurity levels, favourable metallurgy, and proximity to infrastructure has the potential to be developed into a world-class, long-life magnesium operation.
To fast-track Cogburn development, Leader Mining appointed a Project Senior Advisory Group in December. In January the Company commenced a Production Feasibility Study for a 120,000 mtpy high-purity magnesium metal operation for completion mid-December 2002. Management has also commenced, in lock-step with the Feasibility, development permitting, negotiations for options on electric power and natural gas and will soon be approaching major automobile manufacturers for long-term off-take contracts.
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