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Market: ASX
Sector: General Mining - Rare Earth Minerals
EPIC: GLF
Latest Price: A$0.01  (14.29% Ascending)
52-week High: A$0.06
52-week Low: A$0.01
Market Cap: A$7.20M
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Gulf Industrials
www.gulfresources.net.au

GGulf Resources is a resource development company that creates value for shareholders through the identification, acquisition and valorisation of resource focused projects, with a particular emphasis on regions where Gulf maintains relationships that provide a strategic advantage.

With a team of experienced engineering, project management, legal, financial and resource specialists, Gulf fosters and seeks to develop projects of major significance to both the company and the countries in which Gulf operates.

Full Gulf Industrials profile here
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Gulf Industrials increases vermiculite footprint and kicks off drilling in East Africa

15th Apr 2011, 7:40 am

Gulf Industrials (ASX: GLF) has increased the current mining lease on the Namekara Vermiculite Mine in Uganda by adding additional exploration licenses enabling the company to take advantage of supply side deficits in vermiculite.

The expanded mining lease held by Gulf is now 19.5 square kilometres which includes an old phosphate mine and extended vermiculite and phosphate showings. 

Namekara has an JORC Inferred Resource of 55 million tonnes - one of the largest vermiculite resources in the world - with the coarser nature of the mineral output attracting a price premium.

Gulf has planned an aggressive diamond drill program for 2011 of 8,000 metres which will commence in the current quarter.

Exploration is aimed at increasing output from Namekara to 130,000 tons per year.

Vic Fitzmaurice, chief executive officer, said expansion of the mining lease ensures that Gulf is strategically placed to become a leading vermiculite producer during the current period of supply side deficits.

Production at Namekara is expected to increase to 30,000 tpa during 2011.  The company will drill another 14,000 metres at the site in 2012.

Exploration will also cover work on the Carbonatite complex and surrounding leases.

Gulf chairman, Sir Sam Jonah, said he was excited about the potential for vermiculite as well as copper, phosphate and other related minerals.

In a Veritas Securities report published last year, the broker noted that increased vermiculite production to 115 ktpa by 2014 would allow Gulf to capitalise on the natural demand increase for the resource and to replace a shortfall of mine production from Rio Tinto’s (ASX: RIO) Palabora mine in South Africa.

Namekara is located within a 40 kilometre radius of the cities Tororo and Mbale, as well as the Kenyan border.

 

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