The Cobre operation currently sells magnetite from a treated stockpile through the Company’s wholly owned subsidiary Southern Minerals Group LLC. Cobre is a reliable high-capacity supplier of magnetite to industries throughout North America, in markets such as:

Cement	Ballast
Fertilizer	Magnets
Landscaping	Coal cleaning
Paint pigment	Dense media/medium
Water jet cutting

In 2011, the Company acquired, through its wholly owned subsidiary Southern Minerals Group LLC (“SMG”), the rights to operate the Cobre magnetite stockpile in New Mexico, United States. Initially the Company sold magnetite product to export iron ore markets but due to the decline in the iron ore price has now refocused its efforts on domestic sales to customers in the United States.

The magnetite stockpile was compiled by treatment of by-product from copper mining and milling activities, with the material recovered by a magnetic separation process to produce the magnetite product now available for sale. The product has been processed through ball mills to grind the rock down to a P80 of 90 microns. The magnetite is non-hazardous and there is a full environmental permit at Cobre that enables the existing free scoop, screen and logistics operation to be undertaken.
The product is ideal for markets such as cement, fertilizer, dense media/medium, paint pigment, water jet cutting, ballast, magnets, toner, coal cleaning and landscaping. The price of magnetite product sold to these markets is not linked to iron ore prices. Detailed specification of our magnetite product is available on our subsidiary website.

The Company has also been working to increase the value of the Cobre asset by reviewing sales opportunities including the opportunity to produce a higher value product for sale to the dense media market and other markets. Improving conditions in the US has provided opportunity to expand our customer base and SMG has successfully unlocked significant value from the existing magnetite stockpile.
Cash flow generated from Cobre has been instrumental in the Company being one of the few listed resources companies that does not require regular raising to cover operating overheads and recent performance has helped to partially fund other development opportunities.

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Key Personnel Delivering Cobre

Clovis Hooper, President

Mr Hooper was insturmental in the set up of Southern Minerals Group and operations at Cobre.  

A long term resident of Silver City (near Cobre), Mr Hooper has a Bachelors degree in Business Adminsistration with a major in accounting. He  hasa worked extensively in this field, including, working  with the current and previous mine owners for a number of years. 

Mr Hooper has successfully expanded the client base and has instilled a first class safety culture, including an ability to operate contactless through the Covid-19 pandamic.