Titanium
Corporation Inc. quarterly update
conference
call scheduled for 10:00am EST on Tuesday, December 11, 2007
Toronto, Ontario�December 10,
2007�Titanium Corporation Inc. [TSX.V:TIC] (the �Company�) is pleased to provide
an update on the progress of its oil sands tailings project following the filing
of its quarterly and annual financial statements for the year ended August 31,
2007.
The past year culminated more than
two years of process design, testing and on-site piloting. The results include a
new expanded opportunity to integrate bitumen and heavy mineral recovery from
mined oil sands tailings as well as some new challenges. Processing fresh
tailings has proven complex and is taking more time than originally
anticipated. After an extensive
review of these results, the Company reports as
follows:
- Recovery of minerals and bitumen
from tailings goes hand-in-hand due to technical and economic factors
- Our concentrator technology
achieved high levels of mineral recovery during the on-site
pilot
- Zircon and high grade leucoxene
are the primary valuable minerals in the
concentrate
- Further removal of bitumen from
minerals is required for effective mineral separation
processing
- The base technology needs to be
enhanced and new technology developed to recover more bitumen from the tailings stream
The
Company�s operations during fiscal 2007 focused on mineral concentration,
bitumen removal and recovery and mineral separation as discussed
below.
Mineral
Concentration:
Utilizing bulk sample material from the prior year�s on-site program, the
Company designed a pilot mineral concentrator which was deployed at the oil
sands site in the first quarter of fiscal 2007. The pilot concentrator achieved heavy
mineral recoveries, as a concentrate, of between 98 and 99 per cent from the
tailings stream. The $3 million
program was completed on time and within budget.
Bitumen
Removal and Recovery:
Froth treatment
tailings from mined oil sands extraction processes generally contain bitumen
losses in the range of 3 % of the total bitumen mined. Bitumen adheres to the
mineral sands and is also present in the finer sand fraction throughout the
tailings stream. The pilot concentrator was designed to remove
bitumen from the heavy minerals and a separation vessel was utilized to collect
the bitumen and solvent mixture. It has been determined that the removal of a
fine coating of bitumen is necessary for effective minerals processing. Work is underway aimed at improving the
removal of bitumen during the concentration stage, reducing solvent usage,
recovering solvent, and separating and recovering bitumen from the tailings
stream. The Company has engaged industry experts including the Alberta
based research unit of CANMET Energy Technology Centre �CANMET� to assist with
the necessary research and development work.
Mineral
Separation:
Heavy mineral concentrates from the on-site program were transported to the
Company�s Regina facilities for analysis and zircon separation testing during
fiscal 2007. Technical analysis and
market testing during 2007 indicate that the oil sands mineral suite is comprised of two grades of zircon: standard grade zircon which is typically
supplied to the ceramics industry; and a lower grade of zircon utilized by the
zircon chemicals industry. Zircon
testing to-date indicates a potential for recoveries of approximately 55,000
tonnes per year of the two grades of zircon at current oil sands production
levels at the test site. Work is
ongoing to increase recovery levels and grades. Potential markets for high grade
leucoxene is also being investigated. This high grade product represents a
potential of approximately 20,000 tonnes per year at current oil sands production levels at the test site.
Markets:
In
the prior year, the Company had announced a strategy to focus on zircon recovery
due to strong worldwide demand and pricing. The zircon market remains strong,
growing and has attractive pricing. Zircon sand prices doubled in value over
2 to 3 years reaching approximately US$800 per tonne where they remained stable
during 2007. We expect that
worldwide demand will continue to be robust, particularly in China, and that the
supply situation will continue to be tight. In contrast, markets for titanium
minerals are not prospective. Prices for varying grades of titanium
minerals are well below US$100 per tonne. The significant decline in value of the
US dollar in local currencies has also negatively impacted the minerals industry. Titanium mineral markets have been oversupplied. As well, a number of expansions and new
projects are coming on stream and are under development. Accordingly, we continue to focus on zircon and high grade leucoxene. The Company has been active in Asia
working with relationship partners and potential industrial consumers, market
testing zircon and leucoxene product samples.
Outlook
for Fiscal 2008: The
Company�s oil sands tailings project has progressed to an integrated project to
develop technology to recover both bitumen and minerals directly from fresh oil
sands tailings. The recovery of a portion of the bitumen currently lost in these
tailings streams represents an expanded opportunity with the potential for
environmental and economic benefits. In management�s view, the potential market
for tailings processing is significant with three major oil sands mining sites
currently in operation, one to be commissioned in 2008, and several others
planned for the ensuing years.
Over the
next 18 to 24 months, the Company plans to execute programs directed at developing integrated processes for bitumen and mineral recovery. These programs will be conducted in
stages and it is anticipated that the work will initially focus on laboratory
and bench scale activity, later advancing to pilot operations. Additional work on minerals will also
occur, with a view to improving the quality of lower grade zircon and evaluating
upgrading processes and potential for downstream value added
processing.
The
Company plans to assess and pursue all available options to resolve the technical areas outlined above. The
Company is in the process of: partnering with expert research organizations;
adding oil specialists to the organization; working with Government to gain
support in areas of research and potential funding; and executing a staged
research program with milestones. The Company is also investigating new business
opportunities that would leverage its expertise and assets, expand activities
and diversify risk.
Titanium Corporation continues to
maintain a strong balance sheet with a cash position of $20 million at the end
of the quarter, no debt and expenses controlled to budget.
Titanium Corporation�s financial
statements and MD& A for the fourth fiscal quarter of 2007 are available on
SEDAR at www.sedar.com and on Titanium Corporation�s
website at www.titaniumcorporation.com
.
Titanium Corporation Inc. will host
an update conference call at 10:00 am Toronto/NewYork time (EST) on December 11,
2007. The North American toll-free
conference call dial-in number is 1-866-585-6398 and the international dial-in
is 416-849-9626. A live audio
webcast of the conference call will be available to all interested parties
through Titanium Corporation�s website www.titaniumcorporation.com or through
investorcalendar.com. A replay of
the conference call will be available until December 25, 2007; toll free dial-in
at 1-866-245-6755 and local/international dial-in at 416-915-1035, passcode
number 251915.
About Titanium
Corporation
Titanium Corporation Inc. is a
Canadian company developing a commercial process to maximize the inherent value
existing in the waste material currently being deposited in oil sands tailings
in the Fort McMurray, Athabasca oil sands region. Through extensive research, including
the construction and operation of pilot processing facilities, the Company is
developing technology to integrate the recovery of heavy minerals and bitumen
from mined oil sands tailings. Titanium Corporation�s technology could be applied to existing and
planned mined oil sands projects with the objective of creating a new sustainable industry for Canada.
Titanium Corporation Inc. shares trade on the Toronto Venture Exchange
(TSX.V) under the symbol TIC. For more information, please visit
our website www.titaniumcorporation.com.
Disclosure regarding forward-looking
information
This press release contains
forward-looking statements that are based on the company�s current expectations
and estimates. Forward-looking
statements are frequently characterized by words such as �plan�, �predict�,
�expect�, �project�, �intend�, �believe�, �anticipate�, �estimate�, and other
similar words or statements that certain events or conditions �may� or �will�
occur, and include, without limitation, statements regarding the recovery of
heavy minerals and the Company�s ability to extract heavy minerals from tailings
in the future. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors that
could cause actual events or results to differ materially from estimated or
anticipated events or results implied or expressed in such forward-looking
statements. Any forward-looking
statement speaks only as of the date on which it is made and, except as may be
required by applicable securities laws, the company disclaims any intent or
obligation to update any forward-looking statement, whether as a result of new
information, future events or results or otherwise. Forward-looking statements are not
guarantees of future performance and accordingly undue reliance should not be
put on such statements due to the inherent uncertainty
therein.
We also direct you to our risks and
uncertainties statements more particularly described and updated in Titanium
Corporation�s Quarterly Management�s Discussion and Analysis filed for the year
ended August 31, 2007, on SEDAR (www.sedar.com). Most notably these risks and assumptions
include, but are not limited to: changes in the markets and the worldwide price
of zircon and titanium; risks associated with future plans and objectives;
operating or technical difficulties in connection with development activities;
and development time lines and priorities.
All subsequent written and oral forward-looking information are based on
estimates and opinions of management on the dates they are made and expressly
qualified in their entirety by this notice. The Corporation assumes no obligation to update forward-looking information should circumstances or management�s estimates or opinions
change.
The TSX Venture Exchange has not
reviewed and does not accept responsibility for the adequacy and accuracy of
this release.
For further
information:
Scott Nelson, President &
CEO
Carolyn Muir, Investor Relations
Titanium Corporation Inc.
Titanium Corporation Inc.
403-561-0439
416-955-0715 X 224
E-mail: snelson@titaniumcorporation.com
cmuir@titaniumcorporation.com
