Stratmin Global Resources PLC Completion of Metallurgical Analysis (2241S)

TIDMSTGR

RNS Number : 2241S

Stratmin Global Resources PLC

05 November 2013

5 November 2013

StratMin Global Resources Plc

("StratMin" or the "Company")

Completion of Metallurgical Analysis

StratMin (AIM: STGR), the graphite production and exploration company with assets in Madagascar is pleased to report the conclusions of a recent operations review at its Lohorano property and laboratory scale testwork based on grab samples treated at SGS South Africa (Pty) Limited (SGS) and MINTEK under the guidance of StratMin's appointed consultants, PROMET DADI AFRICA (Pty) Limited (PROMET).

Summary

Preliminary laboratory scale mineralogical and metallurgical testwork has revealed:

-- a recovery of greater than 90% graphitic carbon* content and recovery yields up to 89% is achievable

-- 70% of graphite recovery classed as large flake (+100 mesh) of which 59% is higher value jumbo flake (+60 mesh)

-- the existing Process Plant requires modification to better suit the ore body beneficiation requirements

*StratMin reports graphitic carbon levels (Cg) rather than the higher total carbon content (Ct). Ct can be up to 10% higher due to the organic carbon present in all graphite deposits.

Manoli Yannaghas, Managing Director of StratMin, said: "These results further confirm the potential of Lohorano to become a leading graphite mine, producing a premium product from a very large resource base. The work completed to date has also confirmed that Stratmin will be able to improve processing efficiencies with minimal additional capital expenditure. I look forward to reporting further progress as we complete the upgrade."

For further information please visit www.stratminglobal.com or contact:

 
                                             +44 (0) 20 7467 
 StratMin Global Resources Plc                1700 
 Manoli Yannaghas (Managing Director) 
 
 Peel Hunt LLP (Nomad & Broker)              +44 (0) 20 7418 
  Matthew Armitt / Ross Allister              8900 
 
 Tavistock Communications (Financial PR & 
  IR) 
                                             +44 (0) 20 7920 
 Simon Hudson / Conrad Harrington             3150

Competent Person's Statement

The SGS and Mintek reports and the information contained in this announcement has been reviewed by Rob Bennett, FSAIMM, at Promet Dadi Africa ("Promet"). Promet has been appointed by the Company to oversee the SGS and Mintek 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 2013 operations update.

Test work

As previously announced on 26 June 2013, a sample of ore was taken from Block 1 of the Lohorano Mine to better understand the metallurgical characteristics at site. Laboratory benchscale flotation test work (simulating the Lohorano plant) achieved a maximum product grade of 86% Cg and an average grade of 82%.

Since June, PROMET have visited the Lohorano property and reviewed the process. Additional mineralogical and laboratory based metallurgical test work has been performed between August and October 2013 on the existing plant's graphite concentrate production by SGS and MINTEK under the guidance of PROMET. The results provide clarity on recovery rates for a number of potential processing routes. The laboratory scale results demonstrate that beneficiation to more than 90% Cg can be achieved using a flow sheet including milling and flotation. Other test work conducted on the concentrate samples showed that is possible to achieve 98.3% Cg with an acid leach process.

Table 1: Metallurgy Results Chronology

 
                             Graphitic C Grade   Recovery % 
                                     % 
--------------------------  ------------------  ----------- 
 SGS test work (Sept '13)       Average 82%          - 
--------------------------  ------------------  ----------- 
       November 2013 Laboratory Metallurgical Results 
----------------------------------------------------------- 
 + Leaching: SGS test 
  work                             98.3%            100% 
 + Pebble mill: MINTEK 
  test work                        90.7%            96% 
--------------------------  ------------------  -----------

Plant equipment is now being procured by Stratmin and the existing installation is currently being modified and upgraded to include for the attritioning / flotation configuration.

The laboratory scale testwork completed reveals the ore at Lohorano upgrades from the 5.5% Cg in the ROM feed to better than 65% Cg in a single rougher flotation process with a recovery of 97% of the in-situ graphite. A further two stages of flotation cleaning yield a product with a graphite content of 70-80% Cg and a recovery of 89% in total.

The existing 30 tonnes per hour plant currently produces graphite grade carbon of up to 80%. The laboratory testwork conducted in this recent exercise has indicated that the existing plant has the potential to reach over 90% Cg by including a pebble mill between the rougher float cells and the cleaner flotation process.

The laboratory testwork conducted at SGS confirmed recovery yield to be 89% at present with 71% being classed as jumbo flake (+60 mesh). The Lohorano project flake size is partly due to the altered metamorphic nature of the ore. Further testwork by MINTEK has identified the preferred milling residency time allowing only a 6% flake damage profile while delivering 90.7% Cg. If necessary, further residency time can be considered which will increase the graphite grade further but potentially incur a reduced flake product size.

Further beneficiation is possible through the use of acid leaching. The laboratory testwork delivered a 98.3% Cg grade product with no negative effect on the flake size.

PROMET has proposed flowsheet modifications to immediately incorporate an attritioning step in the existing plant configuration. Plant equipment is now being sourced and installed by the StratMin's own personnel.

Confirmatory laboratory scale testwork is planned for use in the design and engineering of a larger facility as well as data generated from the plant post the inclusion of the attritioning process step.

Upgrade costs

To upgrade carbon content at the current plant, StratMin expect the cost of the inclusion of the preferred processing equipment to be approximately US$200,000. This includes the cost of the mill, dosing systems and various pumps and pipework. Work has already begun on modifying the plant with a number of the upgrades already complete. The ordering of the equipment suggested by Promet is underway and which is planned to be at the mine site before the end of 2013 and operational by early 2014.

Production

In the meantime the Company will continue to produce graphite at between 70-80% carbon content for sale into the market place, but will not be producing product above 90% carbon content for the remainder of the current calendar year.

Production at the plant continues on a single shift basis and is producing up to 40 tonnes of graphite per week for shipment. The Company does not plan to increase production volumes prior to the installation of the new equipment.

-ends-

About Lohorano

The Lohorano property has an indicated JORC resource of 421,000 tonnes at 5.5% graphite (inferred resource of 5,273,000 at 4.04%) on less than 10% of the property area, is already producing a jumbo flake product and is located within 100km of the main port of Tamatav.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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