July 22, 2008
SRA Announces Robust Scoping Study on Germanium and Gallium
Strategic Resource Acquisition Corporation ("SRA") (TSX: SRZ)(TSX: SRZ.NT)(TSX: SRZ.NT.A) is pleased to announce the results of a preliminary assessment ("scoping study") conducted by Aker Metals on the economic viability of a process to recover both Germanium (Ge) and Gallium (Ga) in the zinc leachate from smelting Mid-Tennessee zinc (MTZ) concentrate.
The study is based on a projected plant feed of 13,000 dmt p.a. of leachate with a process recovery of 84% Ge and 82% Ga. At selling prices of US $1,000/kg Ge and US $300/kg Ga, a considerable discount from today's spot price, potential annual sales are estimated to be US $40 million with operating profit of $25 million, representing an eighteen month payback on capital.
The estimated capital cost of US $34 million is inclusive of costs up to and including plant commissioning and start-up and assumes the plant is an add-on to the existing facilities at MTZ. Economics for purposes of the study have been based on 0.54 wt% Ga and 0.2 wt% Ge as tested in the laboratory, however average historic leachate assays for both metals have been in excess of study values.
The Aker Metals scoping study concludes that "with annual operating costs under US $15 million and an estimated capital cost of US $34 million, the recovery and sale of germanium and gallium from MTZ zinc leachate is very attractive financially. Additional testing at the pilot scale level is required to further examine the viability of the conceptual process and demonstrate recoveries and product purity levels."
Victor Wyprysky, President & CEO of SRA commented, "The economics demonstrated in the proposed Ge/Ga recovery plant effectively reduces our projected production costs by at least $0.15 per lb. of zinc and is attractive to potential joint venture partners we are currently in discussions with".
SRA is now proceeding with the permitting, laboratory testing of the recovery process and planning of the pilot plant which is expected to be completed by first quarter 2009. In the interim, the Company can sell its Ge/Ga rich leachate for the next two years for $10 to $15 million p.a. Gallium and Germanium are used in high growth industries including semi-conductors, wireless devices, fibre optics, high brightness LED's and solar energy.
John P. Thompson, MSc., P.Eng., Vice President, Resource Development for SRA is the designated Qualified Person pursuant to NI 43-101 of the Canadian Securities Administrators and is responsible for the verification and quality assurance of the technical content of this news release.
Cautionary Statement on Forward-Looking Information
This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects, the future price of zinc or other metal prices, the estimation of mineral resources and realization of mineral resource estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration expenditures, costs and timing of the development of new deposits and future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of regulatory matters. These statements reflect management's current beliefs and are based on information currently available. Forward-looking statements involve significant risks, uncertainties and assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including those listed in the ''Risk Factors'' section of the Company's prospectus on file with Canadian provincial securities regulatory authorities.
Contacts: Strategic Resource Acquisition Corporation Victor P. Wyprysky President and Chief Executive Officer (416) 861-0430 ext. 1833 Email: [email protected] Strategic Resource Acquisition Corporation Ian M. MacNeily Executive VP and Chief Financial Officer (416) 861-0430 ext. 1422 Email: [email protected] Strategic Resource Acquisition Corporation Donna Yoshimatsu VP Investor Relations & Communications (416) 861-0430 ext. 1003 Email: [email protected] Website: www.sra-corporation.com
SOURCE: Strategic Resource Acquisition Corporation