EDITOR: | September 6th, 2013

StratMin Global Resources Plc: Preliminary SGS Results and Operations Update

| September 06, 2013 | No Comments
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September 06, 2013 (Source: StratMin Global Resources Plc) — StratMin  (AIM:  STGR),  the  graphite  production  and  exploration  company  with  assets  in Madagascar, announces  the  preliminary results of its  first stage SGS South Africa (Pty) Ltd (“SGS”) metallurgical test work on the Lohorano Mine and  a production and sales update.

Preliminary SGS Results

The test work was carried out on 20kgs of material from  Mining Block 1 of the Lohorano property. Bench scale flotation test-work (simulating the existing Lohorano plant) achieved a maximum product grade of 86% carbon and an average grade of 82%. Further gravity separation test-work  has  been  conducted  on  this  concentrate  in  the  laboratory  using  technology  not currently available at the Lohorano plant and achieved a product with 92% carbon with 90% of the flakes at +70 mesh.

The tests undertaken are preliminary, and require additional confirmatory sets of test-work which are to be carried out by SGS. In particular, further analyses of the mineralogical and metallurgical characteristics will be performed to confirm potential recovery rates, which at this stage have not been adequately defined. This analysis is to be carried out immediately and seeks to confirm appropriate methods of upgrading the carbon content as well as recovery rates. Results of these tests will be announced as soon as they have been received by the Company.

The SGS report has been reviewed by Rob Bennett, FSAIMM, at Promet Dadi Africa (“Promet”). Promet  has  been  appointed  by  the  Company  to  oversee  the  SGS  work  and  to  advise  the Company  on  any  necessary  plant  upgrades  to  achieve  the  marketable  grade  of  graphite envisaged by Stratmin as set out in the June operations update.

Promet will be visiting the Lohorano property in early September to review StratMin’s proposed processing plant upgrade plans and how these relate to the test-work program. It is anticipated that  this  plant  upgrade  will  be  relatively  low-cost  and  may  include  gravity  processing  and screening  capability  that  can  be  retrofitted  to  the  existing  process  without  significant interruption to production.

Production and Sales

The calibration of the plant, including the drying plant, is now complete. The plant is ready to produce at a capacity of 30 tonnes head rate (ore into the plant) per hour on a one shift per day basis.  The  Company  intends  to  start  production  from  9th   September.  Carbon  content  and

recovery remain variable, with the expectation of quick improvement following the further  pending SGS results and corresponding plant upgrades. It is expected that plant improvements,

under the supervision of Promet, will be undertaken in parallel with production.   Given these developments, previously announced guidance on achieving 90+% carbon content production in September 2013 will not be met.

The Company is in advanced discussions with interested parties to sell the graphite it produces with a carbon content of 70+%.

Financing

The Company has been examining a number of financing options in order to carry out the expected upgrades, and to provide enough working capital to take it through to cash flow break even.  A  number  of  offers  are  being  examined  and  will  be   the  subject  of  a further announcement.

Manoli Yannaghas, Managing Director commented, “It has been a challenging year.  However we have made a number of steps in the right direction. We have a surface deposit with jumbo flake  graphite  ready  for  initial  production,  are  in  advanced  commercial  negotiations  with purchasers and have identified a clear roadmap to generate further improvements in carbon content  and recovery.  I look  forward to  updating the market  in due  course as we  further develop our plant and resources.”


Raj Shah

Editor:

Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>


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