atacama ANNOUNCES START-UP OF New Agitated Leach Plant
May 7, 2008… Atacama
Minerals Corp. (“Atacama” or the “Company”) (TSX
Venture: AAM) is pleased to announce the start-up and commissioning of a new
mechanical agitated leach plant designed to replace the current heap leaching
operations at its Aguas Blancas iodine mine in northern Chile.
The new plant is expected to
fully replace the current heap leaching system during the second quarter,
allowing for an increase in annual production of high quality iodine from
current levels of 1,000 metric tonnes to 1,500 metric tonnes.
The new plant offers several
advantages over the previous heap leaching system as seen from pilot plant
operations conducted by the Company in 2006. It will allow for recovery of
iodine from the caliche ore at levels in excess of 75%, compared to the current
heap leach recoveries of approximately 55%. The processing time for leaching
the ore in the new plant will be reduced from months to less than 24 hours,
reducing the need for continuous construction of new heap leach pads.
Importantly, the water requirements for the new plant will be reduced by an
estimated 25%. The Company anticipates these advantages will result in
long-term lower costs of production, reduced working capital requirements and
an extended life of mine.
The new plant was completed
at a cost of $26.5 million, an overrun of less than 4% - an excellent result in
light of current industry conditions.
Accompanying the new agitated
leach plant, a sediment containment pond is under construction at an estimated
cost of $4.4 million.
The Company is also pleased
to announce the successful completion of a new power line system hooking up the
Aguas Blancas mine with the local power grid. The connection point is located 28 kilometers
northeast of the Aguas Blancas mine and consists of two new substations and a
69 kilovolt transmission line at an estimated cost of $8.6 million. The new
power line will replace the current diesel powered generators and provide for a
reliable, long-term source of energy for all future operations.
Atacama Minerals has
established itself as a long-term, reliable supplier of high quality iodine to
the world market. The anticipated increase in iodine production will take
advantage of the current strong world demand for iodine driven by increased
medical uses and a growing market in the use of LCD technology in flat screens
for computers and televisions. The current contract price of iodine is in the
range of $24/kg or $24,000 per tonne, an increase of more than 35% over the
last four years.
On behalf of the Board,
Edward F. Posey
President
For further
information, please contact:
Sophia Shane,
Corporate Development (604) 689-7842
The TSX
Venture Exchange has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.
