“The
cheapest market to get into is the limestone market, that's why we went into
it. The reason we are not in copper and gold is that we wouldn't have enough
capital, even if we found (deposits), to develop it”
Managing Director and
Senior Partner of Local limestone quarry operators Lydford Mining Leo Cousins
speaking on Mining of Precious Metals in Jamaica
There
is now increasing interest in Mining Precious Metals in Jamaica, specifically
Copper, with a fourth company, OZ Minerals of Australia , coming to attempt to
mine the mineral and make it commercially viable as stated in “Four
prospecting for copper in Jamaica”, Published Friday May 2, 2014 by Tameka
Gordon, Business Reporter, The Jamaica
Gleaner.
 |
This
even as there is still now no news on the progress of the Test Pilot Plant for
Rare Earth Metal set up jointly by Japan’s Nippon Light Metal Company Limited
and the JBI (Jamaica Bauxite Institute) as stated in my blog article
entitled “Rare
Earth Metal Pilot Plant at Jamaica Bauxite Institute to test Rare Earth
Extraction Process - Nippon Light Metal Company Limited keen to beat China
using Red Mud from Bauxite Companies”, results for which should have been
released back in March 2014!
At
US$6,700 per tonne on the London Metal Exchange, it’s a lot more valuable than Bauxite
Mining, which comes in at US$300 per tonne as stated in my blog article
entitled “Japan’s
Nippon Light Metal Company Limited to mine Rare Earth elements in Jamaica -
Jack Reacher recycling gadgets for Rare Earth Elements”.
The
Four Copper Musketeers are as Follows:
1.
OZ Minerals of Australia
2.
Carube Resources Inc of Canada
3.
Rio Minerals Jamaica Limited of Canada
4.
Rodinia Resources Pty Ltd of Australia
Gold
isn’t working out in Jamaica, with Australian company Ausjam kicking the bucket
back in 2003 after only extracting 12,000 ounces from their Pennants, Clarendon
Mine. Apparently with only 3000 to 4000 ounces left to dig out of the ground,
it wasn't worth it.
Still,
my sources tell me that they may still be in the island to prospect for more
Gold as stated in my
blog article entitled “AUSJAM
and the Pennants Gold Mine Rush - King Solomon's Mines in Clarendon”, as
the price of Gold is still high enough for it to be worth it.
What
makes many so reluctant to take the plunge into Mining?
The
cost of Mineral Analysis, which may not available in Jamaica according to
Managing Director and Senior Partner of Local limestone quarry operators
Lydford Mining Leo Cousins, explains why, quote: “A big part of the risk is in
the first year or two when you have to drill a lot of Holes and send the samples
abroad where there are sophisticated labs to be sure that the deposits is
viable”.
So
will OZ Minerals of Australia or any of the other four (4) Copper Prospectors
strike it rich? If they do, 5% belongs to the GOJ (Government of Jamaica),
based on value of the raw ore as it’s extracted and confirmed by the results of
Metallurgical Assays!
Where to Dig – How to
get into Mining Minerals in Jamaica
Lydford
Mining sticks with Limestone Mining as it’s easier to mine and makes more
money. But how does one get into Mining Mineral in Jamaica. Well, like Duh-uh,
you have to have a Mining Company first, that’s registered right and proper
with the Company Registrars Office. Then you apply to the Commissioner of Lands
for a one (1) year Prospecting License.
The
Prospecting License has to be renewed annually. To get that Prospecting License
you’ll need:
1.
Work plan
2.
Proof of financial standing
3.
Inform land owners before digging
4.
Carry out Metallurgical Assays on
samples from Bore Holes
5.
Report all results to the Commissioner
of Mines
The
first two are par for course. The others aren’t so easy.
Informing
the landowners is a must, as they must be afforded the ability to give you the
Mining Company fourteen (14) days or two (2) weeks’ notice before you start
digging Bore Holes to test Samples. This as “they can't just barge onto the
land without notifying them” to quote Commissioner of Mines Clinton Thompson!
And
if that isn’t tough enough, there is the aforementioned Cost of Metallurgical
Assays on samples from Bore Holes. Depending on what Mineral you are Mining,
that can run you into thousands of US$ for just testing of samples alone, as
most of the samples have to be sent abroad.
This
initial stage, often referred to as Prospecting, usually stretches over a two
(2) year period.
It
involves drilling Bore Holes of about 100 to 200 feet deep with core samples
being taken every 5 to 10 feet and sent off for assay at a cost of about
US$3000 at the top end or more, depending on the number of tests and the
mineral being sought. Why these tests are so expensive?
It
boils down to the operation of the Drilling Rig and the cost of Reagents
involved in the Chemical Assay process, which not only requires expensive
reagents and sophisticated equiptment, but also skilled certified Chemists, to
quote Commissioner of Mines Clinton Thompson: “During the exploration, they
drill a number of Holes and it depends on what they are finding or not finding.
If the results are encouraging, they will dig more to determine feasibility of
the mine but drilling is very expensive and the chemical tests to be done are
also costly”.
Once
commercial extraction of Copper, said to be the second most abundant mineral
after Alumina in Jamaica, begins, it has to be exported abroad to be extracted.
Like Bauxite, we don’t have the ability to extract Copper from its ore, a
process which requires huge amounts of Sulphuric Acid and Electrolysis – and
lots of Cheap Hydroelectric Power!
Hopefully,
when the Trailers leave with Copper Ore and the Test Pilot Plant results for
Rare Earth Metal from the RDA (Residue Disposal Area) results in Commercial Plants
being built, we can also have a Trailer Load of Money, Vybz Kartel Style,
coming into Jamaica as well!
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