4. BMAG
Western Australia’s Significant Cryptocrystalline Magnesite Deposit
Developing a new local source of Magnesite and CCM for Western Australia
Logistical advantages-access to eastern goldfields and agricultural districts
Decrease the reliance on external monopolistic suppliers
Small scale niche development; batch production proposed
Pilot trials and product development in progress
Scope to increase resource significantly – geophysical channel targets
We are private with low overheads and can adjust output depending on demand
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5. BMAG
Introduction
BMAG was a historical production centre for beneficiated Magnesite product.
Magnesite is the precursor to CCM.
Project owners have an association with the project dating back to 1961.
Located immediately adjacent FQM Ravensthorpe Nickel Operations (RNO) near
Ravensthorpe.
Metallurgical evaluation has shown the ability to produce CCM that is compatible with
nickel hydrometallurgical applications and agricultural applications.
Historical tonnage and grade estimates based on bulk sampling and drilling suggest
sufficient material to support >10 years @ 30,000tpa CCM production.
Paleochannel targets provide upside for delineation of additional Magnesite
tonnages. Several square kilometres of untested Magnesite channels.
Existing 200,000 tonne fines stockpile and bulk sample stockpiles available for re-
processing to generate kiln feed for CCM – trials are in progress
Granted Mining Leases, ability to leverage off historical feasibility studies and fast
track development.
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6. BMAG
Magnesia pricing
Calcined, 90-92% MgO, lump FOB China $275-320
European calcined, agricultural grade CIF Europe €240-350
Dead-burned, Lump, FOB China 90% MgO $270-290
92% MgO $300-380
94-95% MgO $350-400
97.5% MgO $450-485
Fused, Lump, FOB China 96% MgO $600-630
97% MgO $850-950
98% MgO $980-1050
Magnesite Greek, raw, max 3.5% SiO2 FOB East Mediterranean €65-75
Source: Industrial Minerals, January 2015
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7. BMAG
Mine 100- 200ktpa
Magnesite Ore
Beneficiation
Screen +/- DMS
Calcination
700C
30ktpa CCM for
WA Market
Trial reclamation from stockpiles of crude Magnesite fines at BMAG
Resource confirmation
Update historical engineering & feasibility studies
Recommence open pit mining zero stripping
Mobile plant and equipment, campaign operation
Install small calciner
Batch operation
Reagent supply security
Process overview
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14. BMAG
Magnesite economic evaluation factors
One tonne of mined Magnesite ore can generate 150kg of CCM.
Typical in-ground crude Magnesite values ~30% MgO
Screening at -6mm removes most of the contaminants
The oversize fraction grades >45% MgO and is highly pure cryptocrystalline Magnesite
Typically, approx. 30% of the ROM feed (crude ore) is sized >6mm which is of a suitable
grade as kiln feed for calcination and production of CCM
The -6mm fines can be further upgraded by HMS to improve overall MgO yield.
Resources can be stated at various screen size cut-offs to show how much kiln feed
(“Recoverable Magnesite”) can be recovered, and the assays of that screened material.
Calcination at 700C reduces the mass by approximately 50% to generate reactive CCM
Beneficiation can be a water intensive process due to sticky, swelling clays
Calcination rule of thumb: 3.1GJ/tonne of kiln feed – THE LARGEST COST ELEMENT
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15. BMAG
Deposit
Tonnes in
situ
+6.35mm
+6.35mm
-50mm
+50mm
-6.35mm
(reject)
1 313,420 90,946 24,995 65,952 222,474
2W 294,887 123,454 49,211 74,243 171,433
2E 219,690 50,904 21,388 29,516 168,786
3 839,864 174,557 63,757 110,800 665,308
4W 310,992 78,998 29,262 49,736 231,994
4E 1,421,287 483,410 167,734 315,676 937,877
Totals 3,400,140 1,002,269 356,347 645,922 2,397,871
plus 6.35mm
-50mm
10%
plus
50mm
19%minus
6.35mm
71%
In-situ Magnesite tonnage estimate
Original estimate by Thomas 1972, adjusted for tonnes mined after
1972. Originally reported as “Inferred and Indicated Reserve”. The
deposit was tested by percussion drilling, bulk sampling and screening
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16. BMAG
“Recoverable” Magnesite tonnage & grade +6.35mm (CCM kiln feed estimate)
Original estimate by Thomas, 1972 classified as “indicated reserves”. A reported 245,000 tonnes crude ore was mined from Deposit
2W and 4E after 1972, which has been subtracted from the estimate. The deposits were extensively tested by bulk sampling and
screening which is an appropriate assessment method for the style of mineralisation. Grade and contaminants are highly dependent
on size fraction. In the table above, the finer -6.35mm fraction is discarded. The fines can be further beneficiated by dense media
separation.
Deposit Tonnes MgO% SiO2% CaO%
1 85,714 45.5 0.98 0.60
2W 98,104 46.5 0.62 1.15
2E 47,297 45.2 1.31 0.53
3 129,495 46.4 0.81 0.88
4W 67,516 45.1 1.87 0.59
4E 474,062 46.1 0.77 0.64
Totals 902,188 46.0 0.89 0.68
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A large area of paleochannels represent excellent targets for additional tonnages
17. BMAG
EM model paleochannel depth – exploration target
Average 28m depth to
base of paleochannels
Good geophysical targets
for additional magnesite
tonnages
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19. BMAG
Proposed processing route – Minproc 1980
Reprocess existing 200,000t
stockpile of fines
Recommence mining, beneficiate to
provide new kiln feed for CCM
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21. BMAG
Stockpile of -50mm fines at BMAG Deposit 2W available for re-processing
Based on historical studies,
approximately 15% of the mass
of this stockpile could be
recoverable as suitable kiln feed
for CCM
Pilot trials are in progress
21
22. BMAG
Calcination – major cost of CCM production
Dead Burned Magnesite (DBM): fire at 1600C = refractory applications
Caustic Calcined Magnesite (CCM): fire at 700C = hydrometallurgical applications
Rule of thumb: 3.1GJ/tonne of kiln feed for calcination (6.2GJ/tonne CCM)
With low overheads and no public shareholders, BMAG can campaign-mine and batch
process according to market conditions
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25. BMAG
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Contact Us
Terry Butler-Blaxell BSc GDipApFin MBA MAUSIMM MAICD FFin
Project Manager, Owner’s Team
Phone +61 41 893 7740
Fax +61 8 9291 5760
Email terrybb@iprimus.com.au
“We do weird minerals and stuff like that.”
