Winnipeg Free Press

Winnipeg Free Press (Newspaper) - April 15, 1981, Winnipeg, Manitoba 12 Winnipeg free press. Wednesday april 15, 1981 mine development hinges on new processing technique by Paul Moloney mining of Large chromite deposits located near Lac Dubonnet could be come feasible if experiments on a new processing technique prove successful according to Calgary based dynamic mining exploration Ltd. The company headed by former Winnipeg Ger Gordon Travis is hopeful the experiments will justify investment of up to million in mine develop ment and processing facilities employ ing up to 200 people by late 1984. The new process under development by the Ontario research foundation indicates the potential commercial viability of these deposits for the first Travis said. City dynamic recently acquired an option on the 511-acre property containing confirmed Ore reserves of about 13 million tons from the widow of pros Pector Albert Zee Mel. Or. Hans Brandstatter of the missis Sauga based research foundation cautioned that Success of the venture awaits Large scale testing of his patented extraction technique. But if it really works and does what we think will happen it will be a significant Brandstatter said. The Manitoba deposits in the Bird River area about 200 Kilometres North East of Winnipeg were discovered by Zee Mel 40 years ago but could t be economically exploited because the Ore contains a Low ratio of Chrome to Iron. Brandstatter s technique however could change the picture by using Low Cost Coal from Saskatchewan instead of electricity to extract the Metal. Chro me is used to make stainless steel. Rough initial calculations show production costs of perhaps. 39.5 cents per Pound of ferr chromium Alloy compared to a Market Price of about 50 cents . A Pound Travis said. The research foundation has begun a project funded by dynamic mining to test whether the technique can be used on a Large scale to produce the Alloy. No predictions the project will take several months to Complete Brandstatter said adding he was t prepared to predict Success or failure. We need to do these tests to confirm verify and gain Confidence. If you have a Bench scale process that works but you can t scale it up for commercial you Haven t really got any Brandstatter added that finding a Way to utilize the Manitoba Ore was important because the major sources of Supply now Are South Africa and Zim with questionable political stability. However a Winnipeg based mining analyst told the free press there s currently no shortage of the product and dynamic mining might have Trou ble luring customers away from established producers. Assuming the thing was technically viable they d still have to find a mar Ket for said David James of Richardson securities. The major Canadian user of Ferro chromium Atlas steels co. Ltd. Of Wei land ont. Said it would buy from Manitoba if the product was usable in steel making and was competitively spokesman Donald Knight said Atlas was following the Ontario research experiments with interest but it s too Early to assess the commercial viability. Things might work quite Well in the lab but when you get into a 60-ton or 100-ton commercial Furnace the pro Cess might not stack he said. James said recent increases in the Stock Market Price of dynamic min ing s shares were based on speculation. He said investing in the company would be risky at this Point. "1 regard dynamic mining As a highly speculative situation at this june James said. While the precise method of raising capital has t yet been decided on we Don t at this juncture envisage a need for any government Travis said. The 12-year-old company with about shareholders and 4.1 million shares issued is also engaged in Oil Gas and uranium exploration and solar Energy research. 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Model vet-650 shop til 9 . Mon., thurs., Fri correction Beaver lumber Spring spectacular flyer in tues. April 14 paper All Gas barbeques should have read propane tank is extra and not included in Price of barbeque. Fertilizer spreader the retail Price should have read not Redwood club chair should not have read de luxe Cedar Fence kit should have read 1 Fence Post per 8 it Section. Economy link Gale should have read mesh Only co Vered in Vinyl. Window Wells should have read galvanized window Well. Creosote Wood preservative is not suitable Lor use on decks As described in flyer. We apologize Lor any inconvenience this May cause our customers. 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