Orbite provides update on status and development plan for HPA facility

Orbite Aluminae Inc. today reported on the present status, development plan and updated budget for completing its high-purity alumina (HPA) production plant in Cap-Chat, Quebec.

Orbite's High Purity Alumina plant in Cap-Chat, Quebec, continued intermittent production at a capacity of less than 50 kg per day into the month of August. Operations were suspended in August and September to allow the Corporation to complete, on a permanent basis, the installation of the plant utility systems, notably the steam, process air, and waste water treatment systems. Intermittent operations resumed in October to allow the production of commercial (4N) samples for shipment to prospective customers and the advancement of our product qualification program.

The Corporation is preparing for the finalization of the facility to the 3 tonne per day (tpd) commercial production level. Engineering and Project Management firms have been selected and are ready to engage pending the necessary capital being raised.

Orbite wishes to note that it has no present concerns related to impurities in its process and does not perceive this to be a major issue going forward. The main issue that led to intermittent and reduced output operations is an equipment issue related to calcination, and not a process related issue.

The HPA plant is comprised of two major sections, the alumina extraction unit and the alumina purification unit. The extraction unit allows for the recovery of alumina from raw ores such as clay and is based upon Orbite's initial hydroxide-based process design. The Corporation subsequently developed the chloride-based extraction process which is the technology platform for the production of smelter grade alumina (SGA), the treatment of industrial wastes such as Red Mud and Fly Ash, and the production of other by-products such as hematite, magnesium oxides and silica including rare earth and rare metal oxides. The HPA facility was designed and built with the extraction unit based upon the hydroxide process. Considering the Corporation plans to convert the alumina extraction unit to the chloride based process, it has decided not to invest to fully complete the extraction unit at this time.

The phased development plan for the HPA facility is as follows;

--Phase 1 - 3 tpd of HPA Expected to be achieved in Q4 2014, based upon a 12 month project execution timeline once the Corporation has raised the necessary capital to proceed.
--Phase 2a - 5 tpd of HPA Cost estimate and preliminary engineering expected to be completed in H1 2014. Detailed engineering expected to be completed in H2 2014. Orbite expects to proceed to capacity increase in H1, 2015, if the necessary capital is raised.
--Phase 2b - Conversion of the Alumina Extraction Unit to Chloride Technology Cost estimate and preliminary engineering expected to be completed in H1 2014. Detailed engineering expected to be completed in H2 2014. The Corporation expects to proceed to the conversion of the extraction unit to the chloride process in Q2-Q3, 2015 and concurrently add a scandium and gallium extraction unit.