CGrowth Capital Inc (CGRA)

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CGRA News on Dolomite

CGrowth Capital looks to expand dolomite production
By LIZ GYEKYE
Published: Wednesday, 20 May 2015
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The dolomite supplier is working with get geologists to take samples of the industrial mineral from its North Stevens County reserve, located in Washington, US, in order to help the company substantiate assets on its balance sheet and expand operations.

US-based holding company CGrowth Capital Inc. has contracted with engineering firm N.L. Olson and Associates to survey and report on the company’s magnesium dolomite reserve quantities and value in Washington, US.

The company’s dolomite is sourced from its subsidiary, Chewelah Properties, which mines and processes the material in Stevens county, and is estimated in excess of 250m tonnes magnesium dolomite.

The surveyors will report on the quantity and valuation of dolomite within the boundaries of 1,100 acres (4.45 km2) of mineral rights that CGrowth owns within the county, which will help the company raise funding and increase production.

The company has also established a relationship with an unnamed third party licensed professional engineer to help it issue a competent person’s report that meets the standards for valuing reserve assets, to be completed by early summer.

CGrowth Capital’s CEO, Bill Wright, said that the company had been working through the best options to utilise its magnesium dolomite reserves.

"By utilising asset-backed financing, rather than equity based, we will be able to build the business and shareholder value, while avoiding significant dilution of our stock," Wright said.

Application

Dolomite can be used in refractory production. Because of a tendency for hydration of calcined dolomite, producers tend to be specialised companies with expertise in handling the material and producing products from it at, or near, the site where the dolomite is calcined.

The largest refractories producer is Magnesita, although others such as RHI, Kumas and Resco Products are also producers.

According to the US Geological Survey (USGS), magnesium producer Nevada Clean Magnesium is also looking at developing a magnesium plant from a dolomite deposit at its Tami-Mosi project in North Central Nevada, US.