Elcora to produce and deliver high grade Sri Lankan graphite in 2014
June 26, 2014 — Tracy Weslosky, Editor-in-Chief and Publisher for InvestorIntel interviews Troy Grant, President and CEO for Elcora Resources (TSXV: ERA). Many people are unaware of Elcora, yet, thanks to its ready for production project in Sri Lanka, it can get a jump start on the already increasing demand for graphite in 2014. Troy explains that “graphite formed hundreds millions year ago in Sri Lanka in a vein type deposit ranging from 92-99% purity so it gives us an advantage and allows us to go in there quickly, assemble our processing refining facilities and quickly maximize the value.”
Tracy observes that not only is Elcora’s deposit rich in high purity graphite, it is also rich in quantity. In fact, Troy explains that the mine that Elcora has just acquired was already operational in the 1960’s producing some 18,000 tons of high purity crystalline vein graphite per year. For the past three years, the existing mine has been run as a private entity under the name Sakura Graphite, which has been taken over by Elcora. The very important characteristic of Elcora’s project then is that there is no exploration needed. It has acquired actual graphite producing facilities rather than joining the graphite exploration bandwagon. Elcora has also appointed Doctor Ian Flint, who has 30 years of expertise in graphite mining and processing to head up the technical side of the project and he has been in Sri Lanka for the past two months to oversee the processing and refining operations.
Elcora wanted a project that was in production and that could go directly to the processing phase. Negotiations started just six months ago. Elcora’s next goal is to build a lab, then to build the refining and processing facility while increasing production. Troy explains that “this allows us to start negotiations and dialogue with end-users as well as starting to match their consumption with our production.” Elcora will not have to invest in significant upgrades – equipment – to bring the mine back to production at purity grades as high as 99.9% as Sakura has already been improving it over the last 3 years such that the mine is, for all practical purposes, ready to produce. Over the next six months, investors can expect the lab will be able to test graphite — while the processing facility is upgraded to enable a production ramp-up.
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Adrian Nixon is a Senior Editor at InvestorIntel. He began his career as a scientist and is a Chartered Chemist and Member of the Royal ... <Read more about Adrian Nixon>