Titanium done talking: It's time to pull up that...

Titanium done talking: It's time to pull up that zircon
2006-04-26 18:19 ET - News Release
Ms. Carolyn Muir reports

TITANIUM CORPORATION ANNOUNCES 2006 DEVELOPMENT PROGRAM

Titanium Corp. Inc. is releasing its 2006 program with a focus on the production of zircon in the first phase of commercial development. In light of the strength of zircon markets and the opportunity this represents, the company is evaluating entering the zircon markets sooner, thereby reducing development costs and providing earlier cash flow. In this regard, Titanium plans to initially conduct an on-site 2006 pilot program involving a mineral concentrator facility designed to assess the recovery of heavy minerals from the oil sands tailings pipeline along with the recovery of hydrocarbons associated with the minerals recovery process. The mineral concentrator facility will be constructed in Australia and shipped to Fort McMurray, Alta., for commissioning during the summer of 2006. In addition, the company's existing bulk sampling facility, which operated on site in 2005, will be an integral part of this program. Inclusive of operating costs, the pilot program is expected to cost approximately $3-million.

Subsequently, Titanium intends to commence the first phase of commercial development, focusing on the production of zircon. This decision was made after continual evaluation of heavy minerals markets and development options. The commercial zircon facility would be constructed in place of the previously planned phase 1 demonstration plant.

Global demand for zircon continues to outpace supply, driven by new demand from China and other Asian countries, particularly in the ceramics industry. In contrast, the market for titanium chloride feedstock (the raw material to produce titanium dioxide TiO2 pigment) is currently in balance. Pricing for chloride feedstock remains static and this market is likely to become increasingly competitive in the near term due to recently announced new projects. Therefore, Titanium is examining other uses for its titanium-bearing minerals and the appropriate timing of market entry. This removes the need to generate large industrial-sized titanium mineral samples -- the primary reason for the demonstration plant.