Iofina Share Discussion Threads

[orslega] 12/8/2014 12:13

boggle - good effort indeed, pulling sg1 digging together (thanks sg1) - sets the scene very clearly.

I agree with bocker - once all these forces come into play, Iofina will be in play. I really hope that is not for another year by which time they should be doing well over 1,000MT annualised production.

[superg1] 12/8/2014 11:38

Bog

Having re-read that I recall some old 'stuff' I think Weil were keen to ID who held leases in the Sweetgrass arch area, surrounding the leases owned by Brainstrom energy.

After a bit of digging it appeared it was IOF, IOF and IOF, but under various retained old names on the original leases.

They seem to own many of the lease blocks around Brainstorm and all the way north to the Canadian border which is where the sweetgrass arch goes.

Good helium concentrations need deep fault systems for the right chemical mix for helium to develop, I guess the Sweetgrass arch deep fault provides that.

The weil 1 well was at least 1% helium which makes it commercial and a mentioned resource of 2 billion CF. They had 2 billion MCF (streuth) on the website to start but I pointed out that error to Weil.

I recall Linde doing an MOU with Gazprom in Russia which I think relates to a few years time, but most of that is .3% which is a higher cost. I imagine that deal is off under the current circs.

The US will end up importing the stuff at high cost in a few years, Bo recognises that and has been a lead on the subject in the US.

The only other one I recall was Spyglass (something like that) drilling a helium well 10,000 feet deep somewhere.

If Sweetgrass arch holds a helium secret it's a handy lease section for IOF to be holding.

Certainly Weil are going to press on with it as Brainstorm mention it on their website, including a helium processing facility to be built.

[awolagain] 12/8/2014 11:17

Great doc Bog...puts the current situation in a largish nutshell.

[bocker01] 12/8/2014 10:52

I cannot see IOF remainig independent in the scenario compiled by Boggle. Those close to the situation may well make their move as soon as IOF achieves some consistant and decent production numbers.

[che7win] 12/8/2014 10:46

Bogg1e,
truly excellent post!

[senden11] 12/8/2014 10:38

Many thanks Bogg1e - that's refreshed my memory nicely as we await further context from IOF, hopefully tomorrow or Thursday.

[1madmarky] 12/8/2014 10:16

Good one Bog. Think that pretty much somes up the situation.

[superg1] 12/8/2014 09:52

Mr Big

I note your reference once more to Lithium iodide batteries. Previously you have mentioned British involvement in research and indications that it's closer than we think.

Is that information you can share?

I've not looked for a while but know Japan are leading the research.

It seems to be many years off.

Although that puzzles me as they have had lithium iodide batteries around for years in pacemakers, so why can't scale them up for mobile devices etc?

I'll dig once more. I think it's potentially huge for iodine in the future if it happens, but it could be many years away on the commercial side.

One would think Tesla would be jumping on that idea, if it was viable.

[bogg1e] 12/8/2014 09:51

Cheers SG. Firstly Im going to send you an email. I approached a helium company in the states enquiring about general costs. I got a response (to my surprise) from a decent chap called Bo Sears. I approached them because they are NOT Weil resources, only to find when he responded that they are actually a part of Weil resources and he gave some interesting data. I thought he may be a good chap to send some research to, regarding Iofina and their potential helium assets, but thought that you would have a better understanding than myself.

[superg1] 12/8/2014 09:16

Thanks Bog
That's two days in a row that you have prompted searches producing info (as below)

So that would explain 1500mt ALP and 1000 mt heap leach, the recovery rate on heap leach is 55% which explains the 30% difference

Actual plant cost $26 mill but that doesn't include the other bits added, mobile slurry units. They did plan mill($15m) for this year, which I think is money spent but they haven't built it.


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.

[superg1] 12/8/2014 09:02

Agitating leaching plant

As opposed to piling it up and just letting water seep through leaching out iodine, I assume it's a crusher, sorter, shaker, chucking loads of water on it type leaching method.

I understand it cost around $60 mill. The vast majority of Chile production is heap leach. Pile it in a heap, pump loads of water over it, then collect the exiting water which is then full of iodine.

I hear others tried ALPs in the past but iodine is full of corrosive ions which loves to eat metal.

Note how Sirocco kept going on about 'wear'. The exiting CEO Tim (I think that's his first name) who understands iodine, said it was corrosion.

The world conquering Red back mining team, came along without the first clue about iodine and keep saying it's wear. They have spent a load on grinding kit for the 'rough pebbles' and it's sitting idle at the moment.

Everyone in the industry besides RB says it's corrosion, some have the T shirts to prove it.

An ALP needs a lot of power too, that may be why their opex pre shut down was 35, 38 then finally $41 per kg.

News 14th August, re Q2, which should see the lower end of the opex for them, Q3 should be higher opex as the colder weather naturally slows thinks up (as reported by them previously)

On their website they give a range of 27 to 35 opex. I don't know if the 35 relates to thoughts of future ALP use or heap leach current methods.

[19bells] 12/8/2014 09:00

Price goes upVolume goes upAnd also the spread at 2.25p

[bogg1e] 12/8/2014 08:49

Its ok, found it Agitated Leach Plant

[bogg1e] 12/8/2014 08:46

SG - regarding RB energy, what excatly is an ALP? Thanks.

[rogerbridge] 12/8/2014 08:22

Nice start to the day. Interestng times.

[che7win] 12/8/2014 08:18

Thanks CK,
certainly seems a strong market.

Superg, cheers for updates.

[captain_kurt] 12/8/2014 08:13

Certainly looks that way che7win. L2 getting stacked at 60p on the bid.
Plus our regular 25k LSE on the bid yet to show too

[che7win] 12/8/2014 08:01

175k bought at 60p?

[awolagain] 12/8/2014 07:56

60p is a major line of resistance....just need to look at the chart at the top of this page and glance over to June and April...once well broken it will be our support for a while, but we need to really push through it...maybe this week.

[superg1] 12/8/2014 07:48

Finally a hit on the 3 forks much further west than the Bakken.

LGX Oil, just over the Canadian border on the Southern Alberta play report this in results yesterday.

Big Valley and Banff (news yesterday)

The Company continues to generate drilling locations and acquire surveys on its emerging Alberta Bakken play, following the success of the 14-2-9-24W4 ("14-2") Big Valley (Three Forks) discovery well on the Blood Reserve. Approval on the first follow-up well has been received and the Company expects to receive approval shortly for the second follow-up location. Spudding of the two horizontal development wells targeting the Big Valley formation is expected to take place in the third quarter with first production anticipated in the fourth quarter of 2014


We know the 3 forks travel all the way under IOF. Nice to see what appears to be commercial oil in that level so far West. Canada have the Bakken above ND too.

[superg1] 12/8/2014 07:21

Mr B

re

'Price stubbornly around 60 p with someone picking up - alternatively institution buying a stake but I think they will come in when the production seems stable or on the back of news'

The stubborn 60p has been helped by a seller I hear, but if the rumblings are right, one main source should be gone very shortly.

On the institutions, yes there is a general consensus of returning interest when solid consistent production is apparent. Probably when all 6 are running smoothly with 600 to 700 mt annual rates.

That excludes whoever is picking them up now.

[superg1] 11/8/2014 22:16

Che

The original story (April 2012) behind that recent comment

Minera Copiapó has submitted an EIA for a US$5.5mn project to transport 250l/s of seawater from a holding pool currently under construction to the Negreiros-Chinquiquiray iodine operation owned by local non-metallic miner Cosayach.

The project is the phase II of a larger initiative to supply seawater to non-metallic operations in northern region I.

The US$13mn phase I part of the project already received environmental approval at the beginning of this year. Construction of phase I is currently under way and it consist of a pumping system to transfer 250l/s of seawater from the coast through 14km of pipeline to a holding pool some 1.19km above sea level in the region's Tamarugal province.

Construction of phase II, involving a 20km pipeline and two pumping stations, will commence once phase I begins operating.


Cosayach, owner of the Negreiros-Chinquiquiray iodine mine, is currently working in regularizing its operations before the environmental evaluation service, following the discovery of irregularities in fresh water extraction last year.