Solid Resources Ltd focusing on past-producing projects in mining-friendly jurisdictions
Solid Resources Ltd. has its eye past-producing projects in Spain, where strong infrastructure welcomes development
1 of 4Rick Gliege, CFO and COO of Solid Resources at the entrance to the historic gallery on Alberta-1 tin/tantalum and lithium project in NW Spain. — Photo courtesy of Solid Resources
2 of 4A drill rig on Alberta-1 tin/tantalum & lithium project in northwest Spain. — Photo courtesy of Solid Resources
3 of 4GlencoreXtrata and Solid Resources personnel climbing a massive magnetite dyke on the Cehegin property. — Photo courtesy of Solid Resources
4 of 4GlencoreXtrata and Solid Resources visit the Cehegin iron ore property. — Photo courtesy of Solid Resources
Solid Resources Ltd. has conquered ups and downs in the mining industry with a focused concentration on past-producing projects in mining-friendly jurisdictions. Projects with available historical data minimize risk and welcome investors, who can gain a clearer understanding of a site’s potential before buying in, said Solid Resources’ CFO and COO, Rick Gliege.
Solid Resources’ primary project is a 1,030-hectare iron ore property called the Cehegin project on the Iberian Peninsula of Spain. The company owns 100 per cent of the 62 iron ore concessions and metallic mining licenses, and has entered into a landmark agreement with Glencore Xtrata to develop the property.
Through its wholly owned Spanish subsidiary Solid Mines España S.A.U. (SME), Solid Resources has also completed its final work and drill program on a 3.69 hectare tin-tantalum concession in northwest Spain.
Both projects are located 40 kilometres from port and have hydro and highway infrastructure in place. Combined with a highly motivated workforce, the region is prime for development, said Gliege. Political stability and a business-focused conservative government also make Spain an ideal market.
“In the last few years Spain has gotten somewhat of a black eye being connected with other southern European countries that are suffering an economic plight,” he said. “Two years ago people were saying, ‘Why would you want to be Spain?’ and I said, ‘Spain may be on its knees economically, but below ground it is very rich.’”
Historically, Spain has held a dominant position in Europe’s mining sector, dating back thousands of years. The Iberian Peninsula is one of the richest mining resources in all of Europe.
In 2000, said Gliege, the country turned its eye to real estate and moved away from mining.
“Since then Spain elected a conservative government that is pro business and pro mining,” he said. “They were motivated to ‘dig’ themselves out of an economic situation and in late October they announced the country has emerged from the recession.”
Gliege joined Solid Resources as a director in 2009 and six months later was appointed chief operating officer.
His background in venture capital and publicly traded companies, along with 23 years in business management with one of B.C.’s largest insurance companies, made him a good fit for the company.
“As a regional and provincial manager I gained a lot of skills in management, negotiation, and working with large operational budgets over a very large area,” he said. “The insurance industry wasn’t entrepreneurial enough for me—I wanted to apply those skills in a new direction.”
Solid Resources was an attractive venture because of its strong technical team and management that had the foresight to identify tantalum as a desirable metal back in 2000.
“Even in today’s age there is an educational element to talking about tantalum,” he said. “But management at Solid instructed technicians to source tantalum back then.”
What Solid Resources didn’t have at the time was the ability to raise capital, said Gliege.
“At that stage, the tin and tantalum property in northwest Spain was stagnant and Solid was in serious danger of losing it,” he said. “We brought in a new president, Greg Pendura, about six months after I started in management and, with the board of directors’ help, raised sufficient funds to complete the work programs on the tin/tantalum development.”
At the moment, Solid Resources is finalizing the environmental assessment for the exploration permit on the property.
“We are going to make this a mine,” said Gliege. “It’s a lot of heavy lifting, and drilling programs are very expensive, but we are able to do it.”
Bringing the tin/tantalum project to its current stage was a major accomplishment for the company, as was attracting Glencore Xtrata to investigate Cehegin iron ore.
“To design a definitive and exclusive exploration agreement with Glencore Xstrata was a major concern,” he said. “Their merger represents a very large mining company and the world’s largest trader wanting to increase their stake in the iron ore business. They want to work with junior explorers and are only targeting brownfield productions, because they have less risk and there is much less of a chance of cost overruns.”
Solid Resources and Glencore Xstrata have completed preliminary due diligence at Cehegin and are working through a vast amount of historical data, including 38,000 meters of drilling data and records indicating the property produced a high premium iron ore, about 65 per cent with very low impurities.
Gliege said Asia’s appetite for iron ore is expected to stay strong at least until 2030, and the high grade of iron ore to come out of the project will demand a premium price. As for the future, Solid Resources is going to keep along the same path to prosperity.
“We like Spain,” he said. “I believe that by doing what we have been there will be additional opportunities coming our way.”
