Nov 11 2015
Iberian Minerals Ltd. (the "Company" or "Iberian") announced today that its 100% wholly owned Spanish subsidiary Solid Mines Espana, S.A. ("SME") has entered into a binding option agreement with Explotaciones Aroche, S.L. (the "Optionor") pursuant to which it acquired the option to purchase the mining rights of the Aroche Wollastonite Concession ("Aroche") consisting of five (5) mining grids totaling approximately 150 hectares or 370 acres, located 2 kms south of the town of Aroche in the province of Huelva, south western Spain.
Under the terms of the three-year option agreement, ending November 6, 2018, Iberian Minerals will be responsible to pay all exploration, G&A plus capital expenditures and governmental fees on Aroche. The Company will make a onetime cash payment of EUR100,000 to the Optionor once the exploitation permit for Aroche has been obtained. Iberian Minerals has the right to terminate the agreement at its discretion at any time with no penalties. The Optionor will maintain a 10% interest in Aroche. The option agreement allows for an extension of the three-year term in the event of unintentional causes of delay relating to Iberian completing its due diligence, investigation of mineral extensions, confirmation of historical estimates and exploitation permitting of the wollastonite.
Aroche was previously investigated by the National Mining Investigations Company Adaro, S.A. ("ENADIMSA") between 1983 - 1988, which included mechanical drillings, trenching, blasting and mineralogical studies determining the existence of an important marble quarry and wollastonite. At the time wollastonite was not a target mineral.
An Exploitation Permit for the marble resource was granted for Aroche on January 23, 1991 for a period of thirty (30) years that can be extended ninety (90) years until 2081. Marble was exploited on the property by the Optionor from 1991 to 2003. Recognizing the importance of the wollastonite deposit during this period, the Optionor designed and planned a conceptual concentration system and mineralogical plant for the processing of the wollastonite which included crushing, grinding, flotation, dense media and High Intensity Magnetic Separation ("HIMS").
Upon application to the local mining authorities, the current Aroche Exploitation Permit could be authorized to include wollastonite due to the previous extensive investigation, with an estimated cost of over EUR3 Million in relative value today, to prove the deposit.
About Wollasonite
Wollastonite can be used in various important industrial applications, its commercial value ranging from US$80 to US$1,900 per ton depending on the final commercial characteristics of the product pertaining to its various applications.
Commercial uses for wollasonite include:
- Glass and ceramics: 30%-40%, which is unique to Europe
- Polymers (plastics & rubber): 30%-35%
- Paints and Coatings: 10%-15%
- Construction materials, friction products and metallurgical applications: 5%-10%
"The Aroche Wollastonite project is an excellent late stage addition to our current Spanish mineral assets. Engaging our Spanish network and technical teams to identify high interest projects throughout the Iberian Peninsula has created a beneficial pipeline of opportunities for us in the acquisition new assets such as the Caurio Gold project and now Aroche," stated Greg Pendura, President and CEO. "Europe is a major consumer of wollastonite, but a very minor producer, importing it from North America, China, India and Mexico. We will be developing a work program on Aroche to allow Iberian to seek an application for the inclusion of the wollastonite into the current active exploitation permit on Aroche."
The Company's Spanish technical team are currently evaluating the historical data on Aroche and will release additional information on the potential of the project in the near future.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and has been reviewed and approved on behalf of the Company by Fernando de la Fuente Chacon, M.Sc., PGeo, "qualified person."