UPDATE ON INVESTMENT IN GRAPHMADA GRAPHITE PROJECT (2592B)
April 13 2012 - 2:00AM
UK Regulatory
TIDMSTGR
RNS Number : 2592B
Stratmin Global Resources PLC
13 April 2012
StratMin Global Resources plc
(AIM: STGR)
UPDATE ON INVESTMENT IN GRAPHMADA GRAPHITE PROJECT
StratMin Global Resources Plc (AIM: STGR) ("StratMin" or the
"Company") is pleased to provide an update to shareholders on the
Company's 15% investment in Graphmada Equity Pte Ltd
("Graphmada").
Summary
-- Results of a Scoping Study / Technical Review indicate
potential ore volume of approximately 6 million tonnes, at an
average grade of 12% Carbon;
-- Completion of 12,000 tonne per annum graphite processing plant on track;
-- Test mining and trial production expected to commence in current quarter;
-- Based on current market prices for high carbon, large flake
graphite, estimated annual production to produce $18 million gross
revenues, over a minimum 20 year anticipated life of facility;
-- Graphmada's strong underlying fundamentals, and near-term
production visibility, likely to accelerate separate stock market
listing of the business.
In January, the Company announced an initial investment in
Graphmada, an advanced stage graphite mining and production company
with operations in Madagascar. The Company acquired an initial 15%
interest and has been working with Graphmada to fulfil its goal of
becoming a low-cost producer of premium quality flake graphite for
the global market.
Background
Graphmada has recently commissioned a Scoping Study/Technical
Review to evaluate all data obtained to date in preparation for a
trenching/drilling program to delineate a maiden Joint Ore Reserves
Committee (JORC) compliant mineral resource estimate. This study
included a review of all trenching work, geologic mapping,
geophysics and hand sampling undertaken at the initial mine site.
Preliminary grade and tonnage modelling of the approximately 30
graphite lenses identified indicate that each contain on the order
of approximately 200,000 tonnes of graphite ore with an average
grade of about 12%. At this stage, preliminary estimates put the
graphite ore volume at approximately 6 million tonnes. Independent
metallurgical testing has also been underway with initial results
confirming premium quality, jumbo flake graphite.
Note: As a result of the limited exploration work done to date,
the resource category can merely be described as a Geologic Target
not yet making it to the resource classification as specified by
JORC.
Excellent progress has been made toward the construction of the
graphite processing plant in Madagascar. This plant has been
designed to produce approximately 12,000 tonnes per annum at full
capacity. StratMin has been working closely with the Graphmada team
to help ensure the project meets the proposed development
timelines. Despite suffering delays due to Cyclone Giovanna,
Graphmada believes it is still on track to complete plant
construction toward the end of April. Graphmada is confident in the
size and quality of the resource base and plans to commence test
mining and begin trial production in the current quarter.
Graphmada holds additional graphite concessions in the area
which the company believes could contain substantial quantities of
graphite equivalent in resource size and quality to the single
deposit targeted in the scoping study.
StratMin is an investing company focussed on seeking out
investment opportunities in the natural resource and extractive
industries sector. The Group's objective is to take meaningful
ownership positions of operating companies and assets that have
potential for significant growth, whose value can be enhanced with
our capital and expertise.
Gobind Sahney, Chairman of StratMin, said: "We are delighted
that our initial views on the strong underlying fundamental
strengths of the Graphmada business have been borne out by the
results of the recently received Scoping Study. We are increasingly
optimistic that our investment in Graphmada will produce
significant and demonstrable near-term returns for our shareholders
with a separate stock market listing of the business during 2012
now being actively considered and progressed".
Enquiries:
StratMin Global Resources Plc
Gobind Sahney +44 (0) 207 467 1700
Libertas Capital Corporate Finance Limited
Sandy Jamieson +44 (0) 20 569 9650
This information is provided by RNS
The company news service from the London Stock Exchange
END
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