Gossan Resources Limited has entered into a memorandum of understanding to acquire up to a 100 percent exclusive interest in the worldwide rights to a new technology for the production of magnesium metal from dolomite.
The memorandum of understanding defines the terms and conditions of a licensing arrangement for a new high-efficiency magnesium production process being developed by Douglas J. Zuliani. Gossan controls large deposits of high-grade dolomite and silica sand in
Zuliani's technology is projected to significantly reduce the direct operating cost of magnesium metal production by as much as 25 percent compared to a typical Chinese Pidgeon process plant which, with China producing more than 80 percent of the world's magnesium, has now become the industry norm. The new process is based on an efficient adaptation of the original Pechiney and Alcoa Magnatherm process, which still remains the only successfully proven high-temperature method for producing magnesium metal by silicothermic vacuum reduction of molten slag containing magnesia. By using an enhanced Magnatherm approach, the process can employ low-cost hydroelectricity abundantly available in
The Zuliani process is designed to achieve dramatic operating cost savings by process efficiency improvements that significantly reduce both energy and key raw material requirements. These enhancements to the traditional Magnatherm method should materially improve both magnesium recovery and silicon reduction efficiency without the need for a vacuum. Energy use is reduced by development of a technically straightforward method that will ensure highly efficient condensation of liquid magnesium metal, thereby avoiding the need to melt solid magnesium which has been a major problem plaguing both the Pidgeon and Magnatherm processes. The Zuliani process can be commercialized in 10,000 tonne per annum production increments which will reduce initial investment risk and allow expansion of production capacity in tune with market demand.
In order to prove out the technology prior to commercialization, Gossan is undertaking a three phase evaluation process. Initially thermodynamic modelling is being used to verify the process fundamentals. The second phase will involve final bench scale testing and thereafter a third phase of pilot plant testing to demonstrate commercial viability. Gossan may seek a joint venture partner to assist in the pilot plant testing and subsequent commercialization of the process.
In May 2006, Gossan conducted a 27-hole drill program on its 1633-hectare Inwood Magnesium Dolomite Property, located 80 kilometers north of
