Gulf Resources (GLF)

Shares / Stock Code

GLF

Stock Exchange / Sharemarket

Australian Securities Exchange

Gulf Resources is an African focused industrial mineral developer with exploration and development assets in Uganda, Kenya and Madagascar.

It is the Company’s intention to target industrial minerals that are specifically used in:

  • Enhancing agricultural food production – vermiculite, phosphates, gypsum, lime
  • Manufacturing industrial goods – vermiculite, limestone
  • Specialist and Chemical Processes – salts, lithium, borates

Gulf’s primary project is the East African Vermiculite Project (EAV) in Uganda which was acquired in May 2009 from Rio Tinto. The Company is currently refurbishing the plant with production expected to recommence in April 2010.

East African Vermiculite Operation

Following the completion of small scale production run of vermiculite concentrate, work started on upgrading and re-commissioning the plant. Full scale production is scheduled to start at the end of the first quarter of 2010.

A 20t bulk sample of vermiculite has been received by Grace Specialty Vermiculite, part of large US industrial corporation, W R Grace. It will be assessed early in the New Year. Initial discussions on the potential to distribute our East African Vermiculite product have been very positive. W R Grace’s Specialty Vermiculite division is one of the largest vermiculite exfoliators and distributors in the US accounting for at least one third of vermiculite sales in North America.

Off take agreements are in place for 5,000 tonnes per annum and negotiation are close to concluding with various parties for off take agreements covering a further 10,000 tonnes per year.

Agreement has also been reached with East African based freight and logistics company SDV Transami, for the management and logistics of all concentrate production to and from the East African Vermiculite operation in Uganda. The SDV Transami is part of the Bollorè African Logistics Group, the largest transport and logistics operator in Africa.

The East Africa Vermiculite tenement package, including the East African Vermiculite mining lease, covers a large portion of the Bukusu Carbonatite Complex, one of Africa’s largest carbonatite complexes with a diameter in excess of 13km. During recent data review the Gulf exploration team identified historical information relating to a phosphate mine operated on the Bukusu Carbonatite Complex from 1944 to 1963. Further investigation has revealed the mine was located only 3km from our existing vermiculite operations. Gulf has conducted preliminary assessment of the phosphate location and found a large excavation and some remnants of concrete footings from old mine and plant buildings.

Independent assessment has been commissioned and results are pending, however, early indications from historical documents suggest phosphate grades were economic, supporting a profitable operation for nearly 20 years. Gulf’s exploration team will be following up the potential for this project in the first quarter 2010.

The Bukusu Carbonite Complex also has potential for a number of other commodities including Rare Earth Elements (REES) and plans are being made to re-process a recent Rio Tinto geochemical survey and collect new data to assess the complex for other mineral potential.

Gulf Resources (GLF) Products and Services

  • Industrial mineral developer

Gulf Resources (GLF) Locations and Subsidiaries

Gulf Resources Head Office
Level 10, Gold Fields House, 1 Alfred Street,
SYDNEY, NSW 2000
Phone: (02) 8247 5333
Fax: (02) 9247 7722

Gulf Resources (GLF) Share Price

Submitted by ASX Listed Company on 14 April, 2010 - 01:00

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