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Feature article May 23, 2017:

 

Nippon Dragon Resources' technology presents options to fully recover resources in any operating mine

  

Thermal Fragmentation tech set to explode in demand.

 

Nippon Dragon Resources Inc.

(TSX-V: NIP) (OTCQB: RCCMF) (Frankfurt: D5O)

  

Share data, Capitalization, & Corporate info

 Shares Outstanding:  ~142.28 million

 Recently Traded: ~CDN$0.07/share (TSX-V: NIP)

 52 Week High/Low: $0.11 / 0.05

 Current Market Capitalization: ~$10 million Canadian

 Corporate Website: www.nippondragon.com

 

Thermal Fragmentation in operation.

2D animation of uses.

 

 

Valuation Commentary: Nippon Dragon Resources Inc. (TSX-V: NIP) (OTCQB: RCCMF) (Frankfurt: D5O) is poised to enter an increasingly serious monetization stage of commercialization for its unique, patented, and disruptive Thermal Fragmentation (TF) technology. TF uses powerful burners (igniting diesel fuel and compressed air) to surgically extract ore, creating in the process large openings up to ~1 meter wide and up to 30 metres deep, in any direction -- ideal for chasing narrow gold laden quartz veins, among other applications. Early investors entering TSX-V:NIP now, at this pivotal phase of the Company's evolution, are apt to see spectacular gains as what we see developing under the hood of this Company becomes more apparent to the market and translates to share price appreciation.

 

Image 1. (below) -- Thermal Fragmentation Dragon unit with inset of burner, able to extract up to 30 m in any direction, and image of pilot hole to 1x1m (typically takes ~8 minutes).

 

 

Recent Company news:

 

March 14, 2017 - "Nippon updates progress in Arizona"

 

This technology caught our attention, in-part, when we learned that Nikola Vukovic, BSc, M. Eng., QP strongly endorses Thermal Fragmentation. A well known professional in mining circles, Nikola Vukovic has held various senior leadership positions where he budgeted, constructed, commissioned and turned over large capital open pit and underground projects with major mining companies like BHP Billiton, Rio Tinto and Freeport McMoRan. He has a 30+ year successful career involving strategic planning, business development and in implementation of leading business practices for sustainable or event based value creation, re-engineering, optimization and process automation. The contacts he and others with impressive CVs at Nippon Dragon Resources Inc. have developed over the years is translating into an avalanche of attention to Thermal Fragmentation from multiple interested parties, to the point that the Company is now actively looking to expand to meet the demand for rental of TF Dragon units and to showcase the technology, expected to translate to outright leasing of the technology.

  

This journal publication sees an initial near-term (12-month) NIP.V share price target of 40 cents as the aforementioned level of interest translates to contracts that will act as the primary catalyst for upside share price revaluation.

 

Thermal Fragmentation developed by Nippon Dragon Resources is now at a proven and mature stage

 

Key points: Economical, Safety, and Stability

 

The technology has been tested for a number of years over a number of mining projects. The final outcome is whenever conventional mining is not economical, this technology is able to tackle it. Under conventional (blasting) mining technology often narrow veins, section under 1 m, are skipped over so miners can move on to the next economic section of a deposit. The Nippon dragon Thermal Fragmentation technology can extract the gold selectively from the waste, capable of up to 30 m in any 3D direction, and then when development comes in it can simply remove the waste. Essentially, one can extract ahead of development the ore that would otherwise be treated as waste and use it to help pay for development. Thermal Fragmentation technology does not require conventional 5 m development openings, ~2.5 m will do, resulting in huge savings when looking at the quantities of waste that needs to be moved just to make access to certain areas. Additionally because no explosives are used, there are no stresses included on critical rock structures, allowing the technology to be applied in really unfavorable ground conditions -- this advantage also makes the technology appealing to civil industrial engineers for anchoring foundations and reinforcing cables, especially where care needs to be applied to not disturb pre-existing conditions in the rock.

 

Thermal fragmentation can either replace or complement conventional mining, the technology is expected to see mainstream acceptance in mining as having options to fully recover reserves in any operating mine is good from both an environmental and economic standpoint.

"Thermal fragmentation can either replace or complement conventional mining, the technology is expected to see mainstream acceptance in mining as having options to fully recover reserves in any operating mine is good from both an environmental and economic standpoint."

  

Reduce dilution and micro-fragmentation (spalling/crushing of rock to 0 to 13 mm) -- More efficient & less expensive

 

Image 2. (above) -- Comparing thermal fragmented mineralized rock to conventional blasting of the mineralized rock.

  

One of the key benefits of Thermal Fragmentation is that hard quartz rock fractures quickly into small particles, faster than the waste rock surrounding it, allowing high-grade quartz to be extracted with very minimal dilution from surrounding waste rock (something typical conventional blasting method would have lots of). The fragmented mineralized ore is reduced to rocks ranging from 0 to 13 mm in size. This micro-fracturing of the material, eliminates the need for primary and secondary crushing, and improves recoveries. The final result of less dilution and micro-fragementation is more tonnage and higher-grades of desired product for the same dollar that would have otherwise been spent -- increase the yield, and increase the recovery, and the mine will increase its revenue in the end, with the same capacity that it had and the same cost to operate to similar capacity. 

 

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Markets we see Thermal Fragmentation excelling at:

 

1) Low tonnage, high-grade, low cost mill feed (incorporate into existing operations or extract left over reserves from closed mines):

 

Left over uneconomical, technology limited, reserves can be revisited by Nippon Dragon's Thermal Fragmentation technology with very little cost because the infrastructure (e.g. shafts, drifts) has been developed and the money spent. Nippon Dragon can bring in its dragon unit with low cost, hook up to support systems in place, and extract up to 30 m in any direction in 3D. Nippon has demonstrated it can extract 5 to 10 tonnes/hr, one can use such materials to supplement/incorporate into an existing mine operation in a synchronized way.

 

Liability mining; Nippon can also enter past operating mines with minimal of investment and try to extract some of the left over reserves and pay for the proper closing of the mine.

 

2) Assist early stage exploration companies with bulk sampling of outcrops:

 

The Nippon Dragon unit can tackle down from surface, drill down a pilot hole 20 m to 30 m deep and then expand the hole up to 1 m and extract a mineralized zone from the waste and effect a profit. Ideal for early stage exploration companies that want quick cash flow by extracting up to 30 m bulk samples from outcrops, also useful for geological interpretation.

 

3) Civil Industrial Engineering:

 

Making large holes in hard rock without explosives is useful for activities such as tunneling and anchoring for foundations.

 

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Summary of additional observations regarding Thermal Fragmentation technology
 

Based on the results from the latest and ongoing projects Nippon Dragon Resources Inc. believes that its thermal technology could make a significant breakthrough in the mining practice especially, in the early stages of a new project development. Besides the obvious aforementioned economic, safety, and stability benefits, below is a brief summary of additional observations:
 

1. Thermal Fragmentation is a simple process:

 

Drill 10 or 20 m long and 6” (15.24 cm) or 4” (10.16 cm) wide pilot hole in a mineralized zone, insert the thermal head and use heat to create a 'thermal cushion' to expand hole from ~15 cm to 1 m, recover the crushed material (size 0.0-13mm) using compressed air, and back-fill the hole with waste/tailings leaving the ground undisturbed.

 
2. Time effective:

 

To start selective recovery of surface mineralized material from outcrops, this method does not require large initial capital investments, expensive engineering studies, robust project infrastructure, time delays with EIA environmental impact assessment and permitting approvals.

  
3. Bulk sampling:

 

The permits and approvals for bulk sampling programs are received quickly. This technology will allow for quick collection of large scale bulk samples and assays as more representative samples of grade and processing characteristics of ore. Also it could be beneficial with geological interpretations and 3D block modeling filling the gap between exploration drilling results.

 
4. Process sustainability:

 

This proven process and technology can start ore recovery in exploration phase and it could be used throughout the entire project life cycle as source of funding for advance phases of project development and mine closer.

 
5. Quick delivery:

 

From the initial order Nippon Dragon can deliver a new piece of equipment and start production in 6-8 weeks (2-4 weeks for manufacturing and 3-4 weeks for transportation and assembly).

 
6. Noteworthy Research and Development:

  1. Nippon Dragon Resources is reducing pilot hole diameter from 6” to 4” to improve operating costs.

  2. Increasing the depth of material recovery from 20m to 50m  using the air lifting method.

  3. The company is further researching the apparent improvement in grade recovery and comminutions costs  due to inclusions and micro-fractures on a microscopic scale (which is created by thermal process).

The real potential and magnitude of this proven technology and method is not fully explored and the above list is just a brief summary on potential benefits that could be worth considering by junior or major mining companies and other industries.

 

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Nippon's plans to showcase its technology: With minimal investment Nippon Dragon Resources Inc. is looking to turn its Rocmec 1 Gold Project in the in prolific Abitibi region of mining-friendly Quebec into a producing asset and showroom for its technology. The flagship Rocmec 1 Gold property is advanced staged, near-turnkey ready for mining, with 479,100 oz gold in all categories (3 gpt cut-off), >$41M invested to date (5 levels + ramp + shafts).

  

Long-term clients looking to buy their own equipment and lease the technology would pay an intellectual property (IP) fee to Nippon Dragon Resources. The Company is positioned to charge upwards of ~US$25,000/month per unit in IP fees, a deal for the client whose savings compared to old technology would be many multiples.

 

Although the plan is to have Rocmec 1 as its own showroom, ideal for training groups and demonstrating for prospective clients, Nippon will likely have several locations available to it globally via clients using the technology on their own mines soon enough. Most of the trials and pilot programs of Thermal Fragmentation technology to date have been performed with non-disclosure agreements in place, the feed back is positive but the Company has been prohibited from discussing details. Nippon Dragon is getting wiser and is stepping up its game exposure-wise, now its technology is being introduced via the Canadian Mining Innovation Counsel in Ottawa, leading to marketing exposure and this is beginning to pull well. With a large and growing rolodex of potential clients currently looking to engage Nippon in the short-term/near-term it is not a matter 'if', but only 'when' a news release of significance comes out that will provide the catalyst that richly rewards shareholders establishing a long position in NIP.V now. 

 

     Content found herein is not investment advice see Terms of Use, Disclosure & Disclaimer 

   

Nippon Dragon is expanding its assets and developing a fully integrated production line that will connect its thermal technology with downstream process generating high yield concentrate in closed recoverable production cycle.  The end goal is to minimize landscape disturbance and return tailings material back to the ground after mineralized material is extracted, leaving the virgin ground unchanged with no trace of mining activities. Additionally, with its partners from mining and civil industry Nippon is increasing its research and development efforts to further diversified, improve and enhance its technology applications and make them more cost efficient with the final goal of turning the technology into a fully automated process.  

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Nippon Dragon Resources Inc. is currently contract mining in Arizona using its own thermal fragmentation equipment and 100%-owned 75 TPD portable mill (Note: one Thermal Fragmentation dragon unit has the capacity of ~100TPD and operates with such surgical precision that it can often reduce dilution by up to 5 times (compared to traditional blasting technology), making the 75TPD mill the equivalent of 375TPD). Below are images of the Thermal Fragmentation equipment and mill in operation in Arizona, along with expanded insight on the technology.

 

  

Arizona picture 1. (above) Thermal Fragmentation operation in Arizona -- Seen is the equipment layout and setup for surface mining including generator (white), vacuum (green), air compressor (blue), the big blue box is a collector of fragmented material, Dragon thermal unit (red), the white smoke is vapour that is coming at the end of the exhaust. The vapour is visible due to high temperature and moisture difference (thermal burning vs. outside temperature).

 

 

 

Arizona picture 2. (above) -- Presented from another angle. Seen on the highest hill top is a white band/strip, this is the quartz carbonate vein that Nippon is trying to extract from gilla conglomerate-waste rock. In the middle at the upper side of the picture is the next site where the ground is already prepared by bulldozers and to the right of that at the top of the highest hill is a virgin ground with the white band, this is the third site/target.

 

 

  

Arizona picture 3 (above) -- Seen in this image are two ore stockpiles; the bigger one is generated from cutting during the 6” pilot hole drilling program (total of 500 holes) and small pile is thermal stockpile. Please note this picture was taken after Nippon recovered only a few holes, since then the Company has recovered material from more than 60 holes and the stockpile is much larger. Notice the difference in cuttings color;  Nippon was able to selectively target only mineralized (white) material along the hole depth and avoid dilution (yellow) material generating low tone/high-grade/low-cost mill feed material.

 

Nippon's 100%-owned portable 75TPD mill:

  

 

 

3 pictures of mill (above) -- Seen above is NIP.V's fully developed portable plant layout/setup that is built to yield  94% gold recovery in clean process, also seen is the loading packet/bean, conveyor belts, SAG mill, flotation cells, and water tanks.

 

In Arizona, Nippon Dragon Resources Inc. is currently testing and expanding its technology application from hard rock to both hard and soft rock applications. On surface NIP.V is following outcrops and narrow gold veins as narrow as 6 inch wide imbedded in sedimentary rock. Along the strike Nippon has drilled pilot holes with 2-3 feet spacings, 10m deep and 6 inch wide at an angle of 30 degrees. Geologists collected the geological samples (assays) from cuttings and sent the remaining material to the mill stockpile.

 

At the second stage, Nippon used its Thermal Fragmentation mining process to fragment and expand the holes with 70 cm long and 7.62 cm wide thermal lens. After initial ground testing, Nippon uses an 8 minute recipe, per run, per location along the hole expanding first and third hole (in row along the strike) from 6 to 12-15 inches and second hole in middle using 15 minutes recipe to recover any leftover mineralized material between the first and third holes. During the fragmentation process, up to 20% of the material by volume was collected. The following day Nippon vacuumed and collected the leftover fragmented material from the holes. During the both recovery steps the fragmented material is collected and stored in a large size box and afterwards shipped to the mill stockpile.

 

The expansions of the hole were limited (in footwall and hanging wall direction) by host rock properties because thermal technology is not design to work in soft rock.  At the best, in 6 inch wide mineralized zones Nippon managed to recover up to 1 tonne of clean material per hole. So far from 500 piloted and 50 fragmented holes Nippon collected around 300 tonnes of mineralized material that was stockpiled at the mill. When the processing of the mineralized material is completed, the waste material will be used to fill-in the holes in the ground.

 

Furthermore, Nippon refurbished and upgraded its portable SAG Mill to generate 94% material recovery to produced high grade concentrate which will be sent as a batch sample to refineries for final product recovery. This setup allows Nippon to have full process coverage (extraction to final product recovery) all in one place. All infrastructures can be easily relocated to another location. The process / tailings material is clean and it will be return to ground – no tailings facilities required. 

  

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Nippon Dragon Resources' Technical Leadership, Management, and Governance

The current management team and board of directors has a well rounded combination of people that each contribute expertise in disciplines necessary for a successful mining entity:

 

Donald Brisebois, President, CEO, Director

Mr. Brisebois graduated as mining technologist from the Abitibi-Temiscamingue Rouyn-Noranda college. Until recently, Mr. Brisebois was the CEO of Rocmec Mining (2005-2012). He has been the General Manager (2001-2004) of Rocmec International Inc. and is credited with having developed and invented the “Thermal Fragmentation Process” for narrow vein precious metal extraction. Prior to that, he has held the positions of  General Manager for Placer Dome Inc. (1981-1997); supervisor (1977-1981) for Falconbridge, Teck, Ross-Finlay. He acted as Chairman of the Quebec Mining Association Board; is a member of Canadian Institute of Mining and Metallurgy; Board Member of Soredem (Quebec Research Group) and numerous research teams to develop innovating mining methods focused on narrow vein ore bodies.

  

Jean-Yves Therien, Vice-president Business Development

Mr. Thérien holds a Bachelor degree in Administration (specialized in finances) from l'UQAM. He has worked for 18 years as placement advisor for multiple brokerage Companies. His team spirit, entrepreneurship, perseverance and dynamism allow Nippon Dragon to establish a niche in the industry and to exploit markets never developed before.

  

Dr. Michael M. Avedesian, Ph.D., Eng., FCAE, FCIC, Senior Advisor

Former President, Noranda Magnesium and Magnola Metallurgy, Dr. Avedesian has over 33 years of operations and business management experience in the metals and minerals sector. He holds a bachelor's degree with honors in Chemical Engineering from McGill University, and a Ph.D. in engineering from Cambridge University. In 2001, he culminated a 21 year career with Noranda Inc. having held responsibilities in several roles including technical, operations, business management and executive management. He also worked 6 years with Domtar Corp. as Director, Corporate Development in the 1980s primarily in the Chemicals Division which at that time was a vertically integrated mining company in industrial minerals including salt, gypsum and limestone products. Dr. Avedesian also had two successful start-up companies for which he was the founding CEO. One start-up had a successful IPO on the Toronto Stock Exchange. Upon retirement from his corporate career, he was invited to join McGill University in 2003 where he currently teaches courses in strategic management, technological entrepreneurship and launching new enterprises at the MBA and graduate level in both the Faculty of Management and the Faculty of Engineering. Recently, Michael also served as a Director and CEO of Tawsho Mining Inc., a junior gold exploration company publicly traded on the TSX Venture exchange. Currently, he also serves on the Board of Directors of TM4, a company which designs and manufactures electromechanical drive train systems for hybrid and electric vehicles. In addition to his teaching duties at McGill University and his Board responsibilities, Dr. Avedesian also runs an active consulting business in the mining and metallurgical industries with major projects currently underway in Abu Dhabi and China. Michael is a member of Ordre des ingenieurs du Quebec, Professional Engineers of Ontario, and the C.S.Ch.E. (for which he was President in 1992-1993). He was elected Fellow of the CIC in 1993. In 1998 he was inducted as a Fellow in the Canadian Academy of Engineering.

 

Nikola Vukovic, QP, Director

With 30 years in the mining business, Mr. Vukovic has extensive global experience in a range of mining functions; including projects evaluation, financing, development and operations. He was successful with strategic planning, business development and in implementation of leading business practices for sustainable or event based value creation, re-engineering, optimization and process automation. Prior to joining Nippon, Mr. Vukovic held various senior leadership positions where he budgeted, constructed, commissioned and turned over large capital open pit and underground projects with major mining companies like BHP Billiton, Rio Tinto and Freeport McMoRan. Mr. Vukovic has an Honours BSc in Geology from Tuzla University and an M. Eng. in Mining from McGill University. In 2012, he received the Qualified Professional designation from the Mining and Metallurgical Society of America.

 

Émile P. Molgat, Director

Mr. Molgat brings to Nippon Dragon his broad experience in the mining industry and since 2001, he is a consultant for mining companies. Former President and General Manager of Explonor Ltd, a company which specializes in selling explosives to mining companies (1984 to 1992); Regional Manager for ICI (1992 to 1997), Manager for Canada of the underground mines division of Orica (1998 to 2001).

 

Paul-A. Girard, Director

Paul-A. Girard obtained a Communications degree from the University of Montreal in 1975 and a degree in Industrial Relations from the University of Québec in Trois-Rivières in 1981. He has been active in the mining field for more than 30 years and occupied various positions in such field. From 1985 to 1990, he was the financial editor for Les Affaires newspaper, in charge of mining and forestry sectors. From September 1991 to 1994, he acted as Vice-President of business relations for Gestion Corpomin Inc., where he was in charge of internal and external communications regarding mining companies. From 1994 to 2009, he occupied various positions within MDN Inc., namely President, Chief Executive Officer and Chairman of the Board. Since 2009, he acts as a senior consultant in management and communications in the mining field.

 

Note: This article is not intended to be a complete overview of Nippon Dragon Resources Inc. or a complete listing of Nippon's projects. The reader is urged to contact the subject company, the following sources for information have been identified:

 

For more information contact Nippon Dragon Resources' head office at: Ph (450).510.4442

 

Company's web site: www.nippondragon.com   SEDAR Filings: URL

 

     

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Content found herein is not investment advice see Terms of Use, Disclosure & Disclaimer. This is a journalistic article and the author is not a registered securities advisor, and opinions expressed should not be considered as investment advice to buy or sell securities, but rather journalistic opinion only. Technical terms used by the writer may be used/expressed in simplified layman terms and should not be relied upon as appropriate for making investment decisions unless the reader contacts the company directly for independent verification.

 

     

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