MONTREAL, QUEBEC--(Marketwired - Oct 24, 2013) - Orbite Aluminae
Inc. (TSX:ORT)(OTCQX:EORBF) ("Orbite" or the
"Corporation") today reported on the present
status, development plan and updated budget for completing its
high-purity alumina (HPA) production plant in Cap-Chat, Quebec.
HPA Facility - Status Update
Orbite's High Purity Alumina plant in Cap-Chat, Quebec,
continued intermittent production at a capacity of less than 50 kg
per day into the month of August. Operations were suspended in
August and September to allow the Corporation to complete, on a
permanent basis, the installation of the plant utility systems,
notably the steam, process air, and waste water treatment systems.
Intermittent operations resumed in October to allow the production
of commercial (4N+) samples for shipment to prospective customers
and the advancement of our product qualification program.
The Corporation is preparing for the finalization of the
facility to the 3 tonne per day (tpd) commercial production level.
Engineering and Project Management firms have been selected and are
ready to engage pending the necessary capital being raised.
Orbite wishes to note that it has no present concerns related to
impurities in its process and does not perceive this to be a major
issue going forward. The main issue that led to intermittent and
reduced output operations is an equipment issue related to
calcination, and not a process related issue. The detailed design
of a Circulating Fluid Bed (CFB) calcinator has been completed by a
supplier for Orbite. The Corporation is evaluating this design as
well as other calcination technologies and expects approximately 7
months for calcinator delivery following finalization of the order.
This order is expected to be placed within three months following
the raising of the necessary capital.
HPA Facility - Updated Budget
The HPA plant is comprised of two major sections, the alumina
extraction unit and the alumina purification unit. The extraction
unit allows for the recovery of alumina from raw ores such as clay
and is based upon Orbite's initial hydroxide-based process design.
The Corporation subsequently developed the chloride-based
extraction process which is the technology platform for the
production of smelter grade alumina (SGA), the treatment of
industrial wastes such as Red Mud and Fly Ash, and the production
of other by-products such as hematite, magnesium oxides and silica
including rare earth and rare metal oxides. The HPA facility was
designed and built with the extraction unit based upon the
hydroxide process. Considering the Corporation plans to convert the
alumina extraction unit to the chloride based process, it has
decided not to invest to fully complete the extraction unit at this
time (see HPA Development Plan below). In the interim, the
feedstock for the alumina purification unit will be sourced from
commercially available products such as smelter-grade alumina,
aluminum hydroxide or aluminum from recycled products. All these
products are readily available and will not impact operating costs
or product quality. Orbite expects it will produce HPA grade
product in line with market needs and identical to HPA quality from
raw ores.
Accordingly, the projected external capital costs required to
complete the construction and commissioning of the HPA Plant,
exclusive of the alumina extraction unit, are as follows:
|
Revised Estimate
(in thousands) |
|
Original Estimate
(in thousands) |
|
Engineering and Project Management |
$
2,076 |
|
$
2,540 |
|
Material and Equipment, including Calcination System |
$
16,015 |
* |
$15,090 |
|
Labour |
$
4,818 |
|
$6,660 |
|
Contingencies |
$
3,436 |
|
$4,220 |
|
Critical Spare Parts & Specialty Tools |
$ 2,000 |
|
$2,500 |
|
Total |
$ 28,345 |
|
$31,010 |
* Increase in equipment cost reflects firm detailed bid received
for calcinator and changes in foreign exchange rates since
June.
HPA Facility Development Plan
The updated capital cost estimate provided above represents the
investment required to achieve a production capacity of 3 tonnes
per day. The requisite engineering analysis and incremental cost
estimate to increase the total plant output to 5 tonnes per day is
expected to be completed during the first half of 2014 and the
incremental capital cost estimate is expected to be reported during
the second half of 2014.
The phased development plan for the HPA facility is as
follows;
- Phase 1 - 3 tpd of HPA
Expected to be achieved in Q4 2014, based upon a 12 month
project execution timeline once the Corporation has raised the
necessary capital to proceed.
- Phase 2a - 5 tpd of HPA
Cost estimate and preliminary engineering expected to be
completed in H1 2014. Detailed engineering expected to be completed
in H2 2014. Orbite expects to proceed to capacity increase in H1,
2015, if the necessary capital is raised.
- Phase 2b - Conversion of the Alumina Extraction Unit to
Chloride Technology
Cost estimate and preliminary engineering expected to be
completed in H1 2014. Detailed engineering expected to be completed
in H2 2014. The Corporation expects to proceed to the conversion of
the extraction unit to the chloride process in Q2-Q3, 2015 and
concurrently add a scandium and gallium extraction unit.
Once all phases are complete the Corporation expects that the
Cap-Chat facility will have the flexibility to use a variety of
feed stocks such as commercially available products (smelter-grade
alumina, aluminum hydroxide or aluminum from recycled products),
aluminous bearing clay from the Grande-Vall?e deposit, and red mud
residue or fly ash, to produce HPA or SGA and other by-products
such as hematite, magnesium oxides, silica and rare earth and rare
metal oxides. Thus, in addition to becoming a commercial HPA
production facility, the Cap-Chat plant will also serve as a
commercial scale demonstration facility for Orbite's SGA, Red Mud
Remediation (RMR) and Fly Ash Remediation (FAR) technologies.
The technical content of this news release has been reviewed and
approved by Mr. Denis Arguin, Orbite's Vice President Engineering
and Operations, who is a Qualified Person (QP), as defined by
National Instrument 43-101.
Cost and timeline estimates are forward looking statements and
are based on information available at the time and/or the
Corporation management's good-faith beliefs with respect to future
events and are subject to known or unknown risks, uncertainties,
assumptions and other unpredictable factors, many of which are
beyond the Corporation's control. The Corporation continuously
evaluates the cost and timeline to completion as events unfolds. In
addition, the Corporation will require additional funding to
complete its HPA plant. There can be no assurance that the
Corporation will be able to obtain additional funding on favourable
terms, if at all. These and other risks are disclosed in the
section entitled "Risk Factors" and otherwise referenced in our
2013 Q2 MD&A which is available on the Corporation's website or
under the Corporation's profile on www.sedar.com.
About Orbite
Orbite Aluminae Inc. is a Canadian cleantech company whose
innovative and proprietary processes are expected to produce
alumina and other high-value by-products, such as rare earth and
rare metal oxides, at one of the lowest costs in the industry, and
in a sustainable fashion, using feedstocks that include aluminous
clay, kaolin, nepheline, bauxite, red mud and fly ash. Orbite is
currently finalizing its first commercial high-purity alumina (HPA)
production plant in Cap-Chat, Qu?bec and has completed the basic
engineering for a proposed smelter-grade alumina (SGA) production
plant, which would use clay mined from its Grande-Vall?e deposit.
The Corporation's intellectual property portfolio contains 15
intellectual property families, and the Corporation owns the
intellectual property rights to 10 patents and 46 pending patent
applications in 10 different countries. The first intellectual
property family is patented in Canada, USA, Australia, China, and
Russia.
Forward-looking statements
Certain information contained in this document may include
"forward-looking information". Without limiting the foregoing, the
information and any forward-looking information may include
statements regarding projects, costs, objectives and future returns
of the Corporation or hypotheses underlying these items. In this
document, words such as "may", "would", "could", "will", "likely",
"believe", "expect", "anticipate", "intend", "plan", "estimate" and
similar words and the negative form thereof are used to identify
forward-looking statements. Forward-looking statements should not
be read as guarantees of future performance or results, and will
not necessarily be accurate indications of whether, or the times at
or by which, such future performance will be achieved.
Forward-looking statements and information are based on information
available at the time and/or the Corporation management's
good-faith beliefs with respect to future events and are subject to
known or unknown risks, uncertainties, assumptions and other
unpredictable factors, many of which are beyond the Corporation's
control. These risks uncertainties and assumptions include, but are
not limited to, those described in the section of the Management's
Discussion and Analysis (MD&A) entitled "Risk and
Uncertainties" as filed on August 9, 2013 on SEDAR, and could cause
actual events or results to differ materially from those projected
in any forward-looking statements. The Corporation does not intend,
nor does it undertake, any obligation to update or revise any
forward-looking information or statements contained in this
document to reflect subsequent information, events or circumstances
or otherwise, except as required by applicable laws.