Rogue Resources Announces Additional Bulk Sample Results at Silicon Ridge; Launches $880K Private Placement, Closes First Tranche
/EINPresswire.com/ -- VANCOUVER, BC--(Marketwired - July 13, 2016) -
- Glass sand exhibits good potential for high value applications
- Glass sand produced with simplified processing of floatation only, without magnetic separation
- Glass sand grades 99.7% SiO
2 , <0.05% Al2 O3 , <0.05% Fe2 O3 and 0.009% TiO2 - Bulk sample grades 99.2% SiO
2 and meets specification for ferrosilicon without beneficiation - Baseline studies on schedule, target permit and certificate approval by mid-2017
- Launches a $880,000 Private Placement, first tranche of $500K closed
Rogue Resources Inc. (TSX VENTURE: RRS) ("Rogue" or the "Company") is pleased to provide an update on the bulk sample currently being analyzed by Dorfner ANZAPLAN ("ANZAPLAN"), and continued progress on permitting for its 100% owned Silicon Ridge Project (the "Project"), located approximately 42 kilometres ("km") north of Baie-Saint Paul, Québec, and 4 km northeast of Sitec's operating silica mine.
Bulk Sample Update
Bulk sample results indicate that a glass sand product (0.1 -0.3 mm fraction) exhibits good potential for all considered high value applications after utilizing a simplified process with floatation as a single processing step as detailed in the following table:
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Table 1: High Value Applications of Glass Sand 0.1 – 0.3 mm Fraction after
Floatation
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Container
Glass White Silicon
(coloured Float Carbide,
& clear), Fibreglass Glass, Solar Quartz Fused
Float (insulation Borosilicate Opal Glass, Powder & Silica,
Glass & fabrics) Glass, Pyrex Glass, Borofloat Engineered Sodium/
(window, Crystal Stone Potassium
automotiv Glass Silicate
e)
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X X X X X X X
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ANZAPLAN has provided the company with the second progress update on the further comminution and classification test work into 0.1 - 0.3 mm fraction for the 1,500 kg bulk sample shipped to Germany. Further comminution by jaw and roll crushing followed by dry screening, resulted in classification of the silica in a mass distribution of 70.4 weight percent ("wt%") of the material in the 0.1 - 0.3 mm fraction and 29.6 wt% of the material in the <0.1 mm fraction.
Due to the improved quality of the feed material with fewer impurities when compared to the previous drill cores, which tested the entire width of the quartzite, a simplified process with floatation as a single processing step was applied to the 0.1 - 0.3 mm fraction.
Chemical analysis of the floatation is presented in the following table. The slightly elevated iron content (Fe
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Table 2: Chemical analyses, 0.1 – 0.3 mm fraction after classification and
floatation
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Sample ID SiO2 (wt%) Al2O3 (wt%) Fe2O3 (wt%) TiO2 (wt%)
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0.1 - 0.3 after
classification 98.9 0.43 0.029 0.043
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Glass sand (after less than less than
floatation) 99.7 0.05 0.05 0.009
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The glass sand product was achieved without magnetic separation and exhibits good potential for all of the considered applications as provided in Table 1 above. The higher quality feed material used for this testing allowed for the recovery of a high value product with less required processing than in the original test work completed on the drill core samples.
As previously announced on June 7, 2016, the quartzite sample provided to ANZAPLAN for the bulk sample test work showed improved quality with less impurities compared to the previous drill core. After crushing and classification the material was already at ferrosilicon feedstock specifications. Table 3 summarizes the chemical composition of the bulk sample material by size fraction based upon XRF analyses.
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Table 3: Chemical analyses of fraction less than 20 mm, together with
calculated chemical composition of feed fraction and fractions 20 – 120 mm
after crushing and grinding, composition are based on XRF analyses.
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Size Fraction SiO2 (wt%) Al2O3 (wt %) Fe2O3 (wt%) TiO2 (wt%) Mass (wt %)
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Bulk Sample Feed
50 – 400 mm
(calc.) 99.2 0.41 0.012 0.04 100.0
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Crushed Fraction
20 – 120 mm
(calc.) 99.2 0.40 0.011 0.04 89.4
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Crushed Fraction
less than 20 mm 99.0 0.50 0.020 0.04 10.6
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The bulk sample was crushed and optically sorted to determine the amount of material that meets the specifications for high value silica products. The test work determined yield distributions, when crushed, of 89.4 wt% of the material ranging in size from 20 to 120 mm, meeting the thresholds required for ferrosilicon quality and that 10.6 wt% of the sample was <20 mm and meets the feedstock quality for further beneficiation to fulfill the requirements for certain glass, ceramics and fillers (see figure 1). Optical sorting resulted in a slight improvement in quality with some reduction in impurities and increased silica grades.
To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/RogueFigure1.jpg
This marks a significant improvement over the previous test work that focused on the quartzite as a whole (34.6 wt% yield) and indicates to the Company that much higher yields, qualifying for high value applications, including ferrosilicon and/or silicon metal, can be achieved by targeting higher purity zones within the deposit.
Rogue anticipates receiving the 20 - 120 mm (ferro) silicon sample and the 0.1 - 0.3 mm glass sand sample along with datasheets for these samples in the next few days. The samples are being shipped to the Company and will be subdivided into individual lots to be provided to potential end customers for their own testing and analysis.
Overview of the Permitting Process
Throughout June, the Company worked with SNC-Lavalin to develop a comprehensive strategy to advance permitting. As previously disclosed, SNC-Lavalin will be responsible for completing the project application form for the Certificate of Authorization as required by the Ministère du Développement durable, de l'Environnement et de la Lutte contre les changements climatiques ("MDDELCC") under Section 22 of the Québec Environment Quality Act (EQA) for quarrying operations. Baseline studies continue under the supervision of SNC-Lavalin, and are on schedule for completion with the anticipated submission of the Certificate of Authorization application in the fourth quarter of 2016. SNC-Lavalin has had regular consultation with the MDDELCC and the Ministère des Forêts, de la Faune et des Parcs ("MDFFP") regarding study protocols and have received comments and agreed amendments for all studies.
The Company is confident that the required certificates and permits to initiate the project are on schedule and should be received by the summer of 2017. The receipt of certificates and permits is not evidence that the project has been determined to be economic and the Company is currently working on a Preliminary Economic Assessment ("PEA") of the Silicon Ridge Project with Met-Chem Canada ("Met-Chem"), a division of DRA Americas, scheduled for completion in September 2016 to support any decision by the Company to advance the project.
Private Placement
The Company also announces it has arranged a non-brokered private placement of Flow-Through Units (the "FT Units"). The FT Units will be offered at a price of $0.10 and include a non-transferable common share purchase warrant which will entitle the holder to purchase one common share at an exercise price of $0.12 until July 18, 2018. Aggregate gross proceeds are anticipated to be up to $880,000 (the "Offering"). The Company reserves the right to increase the size of the private placement or to modify the type, nature and/or price of the units for any reason. The Offering and any modification to it are subject to compliance with applicable securities laws and approval of the TSX Venture Exchange. The Company may pay finders' fees in accordance with the policies of the TSX Venture Exchange and the shares will be subject to a statutory four month hold period. The final closing date for the offering is anticipated to be on or about July 22, 2016. The proceeds from the issuance of the FT Units will qualify as Québec exploration expenses. Flow through funds received in 2016 will be renounced to investors no later than December 31, 2016. The Company intends to use the net proceeds of the Offering for expenditures on the Silicon Ridge Project.
Closing of First Tranche
The Company is pleased to announce that, subject to regulatory approval, it has completed the first tranche of its private placement and raised $502,500 through the issuance of 5,025,000 FT Shares and 5,025,000 warrants, which expire on July 18, 2018. Finder's fees on this tranche are payable as to $17,587.50 and 175,875 compensation shares as well as 351,750 compensation warrants at an exercise price of $0.15 with an expiry date of November 18, 2018. All shares issued in this tranche are subject to a 4 month hold period expiring November 14, 2016.
"The Bulk Sample result underpins our strategy of producing from easily accessible, higher quality zones that can be selectively quarried and could potentially be direct shipped to end users," stated Sean Samson, President and CEO of Rogue Resources. "We continue conversations with potential buyers of our material. Our permitting advances and the private placement is evidence that we are supported by investors who believe in our Company's plan to continue moving forward with strength."
About Rogue Resources Inc.
Rogue is a mining company focused on generating positive cash flow. Not tied to any metal, it looks at rock value and good grade deposits that can withstand all stages of the metal price cycle. The current focus is Quebec's Silicon Ridge Project. For more information visit www.rogueresources.ca.
Qualified Person
The Silicon Ridge Exploration Project is under the direct supervision of Eddy Canova, P.Geo.(OGQ), and Senior Vice-President of the Company, a Qualified Person ("QP") as defined by National Instrument 43-101, assisted by Paul Davis, P.Geo., Technical Consultant to the Company and also a QP as defined by National Instrument 43-101. Both QPs have approved the scientific and technical content of this release.
On Behalf of Rogue Resources Inc.
Sean Samson
President & CEO, Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Note Regarding Forward-Looking Statements: Certain disclosures in this release constitute forward-looking statements, including timing of completion of bulk sample results, receipt of applicable permits, closing of the offering and completion of the SNC-Lavalin baseline studies. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that are based on the Company's current beliefs as well as assumptions made by and information currently available to the Company, including that the Company is able to obtain any government or other regulatory approvals that the Company's capable of raising additional capital, that the Company is able to procure personnel, equipment and supplies required for its exploration and development activities in sufficient quantities and on a timely basis and that actual results are consistent with management's expectations. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors include, among others, those matters identified in its continuous disclosure filings, including its most recently filed MD&A. Should any of such assumptions prove to be incorrect or such risks become actual events, than the value of the Company's securities may decline. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
For additional information regarding this news release please contact:
Sean Samson
sean@rogueresources.ca
+1-604-629-1808
