Black Mountain Resources wins vermiculite order from North America

Black Mountain Resources (ASX:BMZ) has secured its first sale into North America, the world’s largest vermiculite market, from its Namekara Vermiculite Deposit in Uganda.

The sale is made up of all four grades of Namekara’s premium product and provides validation of the Namekara product in a very large market.

Since resuming operations at Namekara in November 2016, Black Mountain has grown its customer base to over 10 customers on five continents.

The company recently received five repeat orders for the supply of material into the UK, Europe and Japan.

Vermiculite stockpiles have been established at the Port of Mombasa in Uganda and at a secure warehouse facility in Europe.

The total realised sale value of these stockpiles currently stands at A$0.9 million

Given the probable ore reserve of 1.16 million tonnes at 24.8% of vermiculite and the current production of circa 30,000 tonnes per year, the project has a significant potential for further growth.

Namekara deposit is the only current producing vermiculite operation that can significantly ratchet up supply of large and medium material to meet market demand.

Importantly, higher than expected percentage of large and medium size grade vermiculite product is currently being produced at Namekara.

It is widely recognised that the world has an oversupply of micron super fine material whereas the world supply of medium and large size vermiculite is in deficit.

Story by ProactiveInvestors