Stratmin Global Resources PLC Operations Update (3669N)
September 06 2013 - 2:00AM
UK Regulatory
TIDMSTGR
RNS Number : 3669N
Stratmin Global Resources PLC
06 September 2013
6(th) September 2013
StratMin Global Resources Plc
("StratMin" or the "Company")
Preliminary SGS Results and Operations Update
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 9(th)
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."
For further information please visit www.stratminglobal.com or
contact:
+44 (0) 20 7467
StratMin Global Resources Plc 1700
Gobind Sahney (Chairman) / Manoli Yannaghas
(Managing Director)
Peel Hunt LLP (Nomad & Broker) +44 (0) 20 7418
Matthew Armitt / Harry Florry 8900
Tavistock Communications (Financial PR &
IR)
+44 (0) 20 7920
Simon Hudson / Conrad Harrington 3150
-ends-
This information is provided by RNS
The company news service from the London Stock Exchange
END
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