SEPTEMBER 17, 2007
NEWS
RELEASE
FREEPORT ADVANCES HUTTON GARNET SANDS PROJECT
VANCOUVER, CANADA
TSX Venture Exchange: FRI
Shares Issued: 13,266,232
FREEPORT RESOURCES INC. (TSX-V: FRI) is pleased to provide an update on
the status of its Hutton project, including its Request For Proposals
(RFP) which closed this past spring. The Hutton consists of several
high-grade alluvial garnet deposits located on tidewater in northern Labrador now moving towards the development stage.
Current work is focused on export market development, site logistics and
environmental planning, as summarized below.
1. EXPORT MARKET DEVELOPMENT
Request for Proposals
The Hutton Request for Proposals (RFP) garnered much interest from North
America, Europe and SE Asia. It was an
open-ended proposal call to evaluate the Hutton Garnet Beaches as a potential
development opportunity, closing January 17, 2007.
Freeport was prepared to evaluate “... a range of options, including
proposals with a limited role for the RFP Proponent (i.e. marketing, sales or
distribution); a significant role in project development and operation (i.e.
option, joint venture, contractor etc.), outright sale of a portion of all of
the project (with or without a residual royalty to Freeport), or any
combination of the foregoing”.
Proponents could respond to “… permitting (mining lease and
other required permits), site work (garnet extraction, and on-site processing
if applicable), shipping/transportation of bulk or upgraded material to a
processing site, and mineral processing, as well as marketing and distribution
of the Hutton garnet product on the world market”.
The RFP states, “Freeport Resources Inc. wishes to see the Hutton
project developed in a way that maximizes the value to its shareholders,
respects the interests of the Labrador Inuit, and minimizes its environmental
footprint. It is important to understand the seasonal nature of this
project.” It may be viewed at sedar.com
as a public company document of Freeport Resources.
To date, Freeport has been in discussions with many of the major players
in the garnet industry, from suppliers to distributors, and from service
providers to garnet consumers. Several groups visited the site last
summer, testing bulk sample material provided as part of the RFP process.
Freeport is currently involved with a number of parties interested in
advancement of the project as a whole, while others are focused on specific
aspects such as transportation, processing, marketing and distribution.
Further details will be released at a later date.
Waterjet grade garnet is in high demand. Many suppliers have
advised that they cannot keep enough material in stock to meet this demand, and
have expressed interest in a new North American product, especially a
high-quality product such as the Hutton garnet.
Waterjet Concentrates & Testing
As part of the ongoing Export Market Development (EMD) Plan,
commercial-quality waterjet concentrates were prepared from Hutton
garnet. Different separation techniques were used at a number of
independent commercial laboratories. The concentrates have been tested by
groups in the US, Europe and Canada.
One US waterjet manufacturer which recently conducted an industry-wide
study of commercially available waterjet products advised that Freeport should
be confident in the Hutton product, which performed “really
well”. Another major North American supplier/distributor testing
its own products and Hutton garnet advised that it performed equal or better to
a hard-rock product imported from China. As all waterjet tests to date
have met with strongly positive responses, Freeport believes that the Hutton
garnet will command a respectable place in the market once it becomes
commercially available.
Our next step is to test the Hutton garnet at a pilot plant level in
order to prepare larger amounts of product for broader market testing.
Processing methods are straightforward with limited equipment required and
therefore minimal capital costs. This work is just commencing and will
make use of bulk sample material previously collected from both the South and
North Beaches.
Transportation Analysis
Freeport is conducting in-depth transportation analysis as part of the
export market development plan, in order to evaluate possible locations for a
pilot plant. Several under consideration have already been visited.
The location will be finalized once container vs. bulk shipping rates to and
from various locations in North America and Europe are better understood.
2. SITE LOGISTICS
C-Core, the Centre for Cold Ocean Research, part of the Memorial
University of NL (MUN) in St. John’s, recently completed an independent
review of various ways to extract garnet. This work is moving to a
second, more detailed stage, to determine what approaches will be most
effective and also most environmentally friendly.
At this time, the Hutton project is generally being considered as a tug
and barge operation. It is possible that long-term alternatives may be
developed, such as backhaul arrangements with arctic supply vessels returning
empty to major ports in eastern Canada. These ideas require a better
understanding of loading time and logistics.
Methods under consideration include pumping sand from shore to a barge
or ship offshore, or possibly a tandem barge arrangement where a smaller barge
could be beached and used as a portable dock, thereby limiting need for infrastructure
on site. In this option, small earth-moving equipment could be used to
move bagged or bulk material across the landing barge to a larger vessel in
deeper water. Spud barges could also be considered.
Freeport plans continued work with C-Core on logistics-related issues,
such as upcoming tests of pumps on Hutton garnet sand. Tests will be
planned to simulate site conditions, to be followed up in summer 2008 once the
loading strategy is more fully resolved. Over 100 tonnes of Hutton sand
is currently available for logistics planning as well as for pilot plant
tests.
Further work will include cost analysis for on-site and off-site
processing alternatives, including uses for by-products such as quartz sand,
magnetite and ilmenite. Site contouring and reclamation will also be
considered in conjunction with production and processing strategies.
3. ENVIRONMENTAL
Site Documentation & Monitoring
Freeport has commenced a compilation of site documentation which will be
used as a basis for long-term monitoring. The site may also be visited at
key times in different seasons, such as prior to winter freeze-up, to study
year-round conditions. Several beach formation and environmental
consultants are involved in this work.
A photographic record of site conditions over the past 10 years will be
used to study any possible changes. Several observation points have been
established to photograph the sites on an annual and ongoing basis. High
resolution imagery, both air and satellite photos, will also be used to assist
in mapping the beaches and shoreline, and to study any changes over time.
As part of site documentation, the 1999 Legal Survey was repeated last
summer. The South and North Beaches were accurately mapped in 3 dimensions,
with a high degree of precision in plan as well as in elevation. The two
sets of topographic data will be analyzed and compared to evaluate any natural
changes over the 7 year period between the surveys.
The 2006 topographic survey was conducted as part of an archeological
study which is nearing completion. It accurately pinpointed sites such as tent
rings on rocky headlands approximately 6m (20 ft) above the beaches. This
work was important as publicly available maps of northern Labrador are largely
based on air photos and do not reflect actual site conditions.
Offshore Studies
Last summer, detailed underwater surveys were carried out by divers in
the vicinity of the South Beach, confirming that the ocean floor is
predominantly flat and sandy for kilometres. Sampling of the sea bottom
confirmed elevated garnet content as seen in previous results, proving that the
offshore sediments are the source of the heavy minerals composing the Hutton
garnet beaches.
Over the past 2 years, the Canadian Hydrographic Service (CHS) has
conducted offshore mapping in northern Labrador. This work will greatly
assist in improving site access for large-scale commercial vessels, thereby
expanding the range of companies able to provide marine services. Information
from CHS, including side-scan sonar data, will be analyzed once available to
plan how marine vessels could best approach the beaches. The data may
also be very helpful in understanding of beach formation processes.
CONCLUSION
In closing, Freeport is now assembling a technical team to assist with
a) North American and European marketing; b) mineral processing and
product development; c) pilot plant design; d) transportation
analysis; e) site logistics, and; f) environmental and site monitoring.
This work will form the foundation for a full-scale Feasibility Study.
Zdenek Hora, P.Geo., is the Qualified Person who has reviewed this
release.
Freeport Resources, founded in 1981, is a junior mineral exploration
company listed on the TSX Venture Exchange. Freeport has landholdings in
Labrador and B.C., with a special focus on industrial minerals, precious and
base metals, and gemstones.
Freeport Resources Inc.
Brenda Clark, MAIBC
President & CEO
1-888-275-7335 (toll free)
(604) 275-7335 (tel.)
freeportresources@shaw.ca
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