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Black Bull reducing cash burn




Redundant assets at the Black Bull Resources Inc. White Rock Mine are being sold to help keep the company operating while other end uses for the product are being investigated.

Redundant assets at the Black Bull Resources Inc. White Rock Mine are being sold to help keep the company operating while other end uses for the product are being investigated.

Carla Allen
Published on August 31, 2010
Published on August 31, 2010
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Uncertainly remains regarding the continued viability of Black Bull Resources Inc. The mining company owns the White Rock Mine located approximately 45 kilometers northwest of Shelburne.

Topics :
Scotia White TM , Black Bull , United States , Halifax

In its interim report for the third fiscal quarter, ending June 30, the company recorded a net and comprehensive loss for the three-month period of ($206,748) versus ($318,621) for June 30, 2009.

President and CEO Joseph MacDonald says the mine continues to struggle to make a profit and the focus is on downsizing.

“It’s a very difficult position. It’s a competitive market and we really try to improve our situation by continuing to cut back on our costs, and sell redundant assets,” he said.

Material is still moved out “fairly regularly” and shipped by truck then by rail from Halifax.

One person is employed at the mine site on a stand-by basis. When an order is received he performs the crushing and loading. Another employee handles orders and invoicing.

The mine produces a unique, bright, white, high-purity quartz, marketed under the Scotia White TM trademark which is used in a range of value-added specialty products.

One of the first end uses was in the pool plastering business in the United States. Mixed with white cement, it created an attractive white finish for pools.

“Obviously that market was going quite well a number of years ago then with the housing crisis in the U.S. it deteriorated quite rapidly. Many of the pool plasterers actually went out of business,” said MacDonald.

Other end uses are being explored including brick manufacturing, and low- iron content quartz for use in solar panel glass.

“It takes a long time to do the testing that’s necessary,” said MacDonald.

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