Calculations based on in situ value of the Titanium are rather pointless, as like everything else, it's the size of the existing and projected market that really matters. (ie. we've all come across articles reporting that the sum total of all rare earth mineral exploration company MCAPs far exceeds the existing (and near-term projected) market value for those metals (that's not to say that new unforseen uses will not increase the market for either the rare earths or TiO2 in the future).

It might be useful to look at a potential increase in Tio2 concentrate demand by the U.S. market, which as this source (http://minerals.usgs.gov/minerals/pubs/commodity/titanium/mcs-2011-timin.pdf ) indicates was $497 million in 2010, and which represented ~25% of world consumption in 2010. It states:

"One of the two U.S. mineral producers acquired land that will extend mining operations near Starke, FL, though 2017. The life of the Stony Creek, VA, operation was recently extended to 2015 through the addition of the Brink deposit."

So that would suggest a possible opportunity to exploit (20% of the $500 million/annum US market) . Currently the U.S. imports 80% of its demand of 1.5 million tonnes per year , producing only ~ 200,000 metric tonnes itself. The majority of its imports come from South Africa (49%) and Australia (29%) with Canada providing ~ 14% (210,000 tonnes). In 2010 Canada produced ~700,000 mt, thus it is already exporting ~30% of its production to the U.S.



Who are the current Canadian producers? The major one is Rio Tinto (operator is QIT-Fer et Titane ) via the Lac Tio Mine near Havre-Saint-Pierre, Quebec (51.4mt proven and probable, March 16, 2010):

"In operation since 1950, Lac Tio is an open-pit mine located 43 km northeast of Havre-Saint-Pierre, the site of the largest solid ilmenite deposit in the world. The exceptional size and quality of the Lac Tio deposit hold enormous potential for the future – it has a life expectancy of at least another half-century."

http://www.infomine.com/minesite/minesite.asp?site=lactio

So I guess a good question would be whether this Lac Tio deposit/operations could easily ramp up production to meet potentially increased import requirements by the U.S. , at a cost that would undercut other existing import sources (mostly from South Africa and Australia) , but also including any up and coming deposits deemed to be economically viable (such as the Magpie if it proves to be ). The Lac Tio ore is transported 27 km by rail to Havre St-Pierre and then by boat 600 miles to the Sorel Mill/Smelter facility.



Perhaps the Magpie might prove to be economic and cheaper than the Lac Tio, and Rio Tinto would scoop it up? Or perhaps the Magpie concentrate could exploit a fraction of the other 80% of the world's needs, especially if South African production falters (S.A. currently supplies ~20% of the world demand) due to labor unrest/nationalization/increased energy costs.

In any event, a mine producing say 500,000 tonnes of 80-95% concentrate per year would generate gross revenue of ~ $250 million per year.



....all just conjecture and ramblings on my part (but the numbers have all be derived from the cited sources/links)

Cheers, Luker