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Rocmec Mining Inc. – Set to revolutionise mining with a patented technology

Published: 02:45 08 Jul 2009 AEST

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Even though markets have seen some revival since March, the recession worries are yet to recede. Commodity prices including oil remain low except for few selected metals. It is not easy for mining companies to raise funds these days to finance their exploration endeavours. Those who successfully raise funds however are the companies that really have good properties in safe jurisdictions and a strong investment case.

It is against this backdrop the recent financing by Canadian Venture and Frankfurt listed Rocmec Mining (TSX.V” RMI, Frankfurt: D5O) caught our attention. Rocmec is markedly different from the companies that you usually come across in the mining business. The company’s patented “thermal fragmentation” process is ideal for narrow high grade precious metal vein deposits. The company also has its own gold exploration properties in Abitibi–Témiscamingue region in Quebec, Canada and a memorandum of understanding (MOU) with the owners of MINERA OFIR S.A. to operate a small-scale traditional mining operation covering 1100 hectares located in Caraveli, Peru.

First about the “thermal fragmentation” process. The technology utilizes the heat generated by a powerful burner, powered by diesel fuel and air, to create a thermal stress to break the rock into small fragments.  As the method enables the direct extraction of ore bearing vein it reduces he dilution factor and the inefficiencies associated with traditional mining methods which extract large amounts of waste rock. With this method, it's now possible to extract a narrow mining corridor with widths of 30 cm to 1 metre. The broken material produced during this process ranges in size from fine-grained to 4 cm. A portion of the material is ejected out of the hole as burning progresses and the rest can either be blown out of the hole by compressed air or aspirated.

Until recently, the use of chemical explosives was the only effective way of breaking hard rock and was the method widely used by mining companies around the world. Thermal fragmentation is on its way to replace this environmentally harmful and expensive process. With some 30-50% saving in production cost and a 60% saving in the cost of explosives, Rocmec’s thermal fragmentation technology is set to make its mark in the mining industry.

The industry appears to be warming up to this technology and Rocmec has already secured contracts from some mining heavy weights. Following a mine site visit by Fresnillo plc (LSE: FRES) operations personnel to view the thermal fragmentation mining method at the Rocmec 1 mining property located in Rouyn-Noranda and the subsequent visit by Rocmec’s management to Fresnillo’s La Ciénega mine located in Mexico, Fresnillo has entered into an agreement with Rocmec to conduct work using Thermal Fragmentation. Fresnillo Plc is the world’s largest primary silver producer and Mexico’s second largest gold producer.

The company has also made inroads to South Africa and has commenced discussions with major precious metal mining companies. Rocmec already has a South African client in Great Basin Gold Limited (TSX – GBG) (Amex – GBN) which has employed Thermal Fragmentation Mining Method at its Hollister mine located in Nevada.

In anticipation of the potential glut of orders Rocmec has increased its fleet of thermal fragmentation units. The company has mandated Pro-Ab Equipments, an official Kubota distributor in Quebec, to assemble 5 thermal fragmentation units and also to modify two of the existing fragmentation units to increase their flexibility.

Those who seek blue sky potential, Rocmec has its own projects as well. The company’s Russian Kid Gold Mine property in Quebec includes 11 claims totalling an area equivalent to approximately 84 hectares and is located in the Dasserat Township, some 36 kilometres west of Rouyn-Noranda in the Abitibi region. A previous feasibility report prepared by ABBDL – TECSULT, in March 1984 for Metalor Inc., estimated the Russian Kid Gold Mine current in-situ mineral resources at 1,124,532 short tons grading 7.8 g/t gold (equating to 281,133 ounces of gold). This historical resource is not compliant with current standards as outlined in the National Instrument NI 43-101. Other Canadian properties include Montauban, Courville-Maruska and Vauquelin. The recent agreement in Peru has brought 40% interest in 6 mining concessions to Rocmec’s fold.

Following our conversations with the management and its customers, Rocmec appears to warrant a closer look. We will be following Rocmec and will keep you informed of its developments.

About Rocmec Mining

Rocmec Mining Inc., (“Rocmec”) (TSXV: RMI) (formerly Mirabel Resources Inc (TSXV: RMB) is a Canadian junior mining and exploration company actively involved in the acquisition, exploration and development of gold projects. The Company’s exclusive thermal fragmentation process combined with its growth strategy place it as the partner of choice for the development of narrow high-grade precious metal vein deposits.

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