CoTec Holdings Corp. (TSXV: CTH)(OTCQX: CTHCF) has reported progress toward deploying its commercial-scale Multi-Gravity Separator technology. The update covers assembly of the company’s first purchased SCMG2 unit, planned testing and potential applications for recovering ultra-fine iron from mining and tailings streams.
#SCMG2 unit being prepared for testing
The SCMG2 is currently being assembled at the Salter Cyclones Limited facility in the United Kingdom. Factory acceptance testing is scheduled to commence in Q3 of this year.
Once testing is completed, CoTec expects the unit to be shipped to Corem in Québec, Canada. The company plans to use the equipment there as a commercial testing and demonstration platform. Commissioning and shipment have not been described as completed.
CoTec says the Corem facility is expected to support the assessment, refinement and later deployment of the technology across several iron ore and iron ore waste streams. The company describes this platform as part of its route toward potential commercial contracts.
#Technology and commercial rights
The MGS system is designed to separate ultra-fine mineral particles that conventional gravity separation may not recover. CoTec identifies fine particle streams below 150 microns as a particular area of application. The technology has historically been used in the recovery of tin, chromium, copper and zinc.
CoTec’s arrangement with Salter Cyclones Limited, the technology developer, provides exclusive worldwide rights for iron ore and iron ore waste applications using the SCMG2. The agreement also includes certain rights connected with future generations of the technology.
CoTec says the SCMG2 is expected to provide the basis for its iron ore mineral recovery business and its planned future revenue generation from ultra-fine iron recovery. The company has not provided revenue figures or a commercialisation date, and the source does not guarantee that these expectations will be achieved.
#Québec and Brazil opportunities
At CoTec’s Lac Jeannine project in Québec, the company continues to assess whether MGS can recover ultra-fine iron units from spiral tailings streams.
CoTec is also advancing discussions concerning iron ore tailings opportunities in Brazil. The company says available data indicates that the material characteristics in those opportunities are suited to MGS processing. These matters remain discussions, evaluations or prospective opportunities rather than completed projects.
#Risks and forward-looking information
CoTec states that its comments about future development, commercialisation, the Lac Jeannine investment and other potential investments are forward-looking and involve risks and uncertainties. It says actual results could differ materially from those anticipated.
The risks identified include resource and reserve risks; environmental costs and risks; permitting requirements and delays; labour costs and shortages; uncertain supply and material price fluctuations; higher energy costs; labour disputes and work stoppages; leasing costs and equipment availability; heavy equipment demand and availability; contractor and subcontractor performance; worksite safety; project delays and cost overruns; extreme weather; Indigenous or social disruptions; and logistics or transportation availability and disruptions.
#Key Takeaways
- CoTec’s first purchased SCMG2 unit is being assembled at Salter Cyclones Limited’s facility in the United Kingdom.
- Factory acceptance testing is scheduled to commence in Q3 of this year.
- After testing, CoTec expects to ship the unit to Corem in Québec for commercial testing and demonstrations.
- The company is evaluating ultra-fine iron recovery at Lac Jeannine and discussing iron ore tailings opportunities in Brazil.
- CoTec holds exclusive worldwide rights for SCMG2 iron ore and iron ore waste applications under its agreement with Salter Cyclones Limited.
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