Stratmin Global Resources PLC Completion of Preliminary Scoping Report (4537Q)
June 18 2015 - 2:00AM
UK Regulatory
TIDMSTGR
RNS Number : 4537Q
Stratmin Global Resources PLC
18 June 2015
18 June 2015
StratMin Global Resources Plc
("StratMin" or the "Company")
Completion of Preliminary Scoping Report
StratMin (AIM: STGR), London's only listed graphite mining and
production company, is pleased to announce the completion of a
Preliminary Scoping Study for a new mine and expanded flake
graphite production capacity at the Company's operations in
Madagascar.
Key points:
-- StratMin has completed a successful exploration program on
the Mahefadok area adjacent to the company's existing Loharano mine
and production facility.
-- Testing has confirmed a large mineralised body with a strike
extent of 1.5km which has had pitting and trenching across a 150m
width.
-- The deposit is of similar geological characteristic to the
existing Loharano deposit from which the company is producing 94%
Carbon in Graphite (CIG) flake graphite and is capable of
sustaining a medium scale mine and processing plant.
-- StratMin will proceed directly to a Bankable Feasibility
Study for a 12,000 tpa high-grade flake graphite mine and
processing plant.
-- A drilling program will follow to produce a JORC 2012
compliant resource and to enable mine design, scheduling and plant
engineering to be completed.
-- StratMin has proven the technical capability of the company
with production and sales of 94% GIC product from the existing
Loharano operations and now has the platform in place for
significant organic growth.
About the Exploration Program and Scoping Report
StratMin has a large tenement portfolio in Madagascar hosting
JORC compliant resources in excess of 200,000 tons of natural flake
graphite which are currently under production at Loharano. In
addition, there are numerous identified graphite occurrences
prospective for new mining operations.
The focus of the company to date has been the successful
production of high-grade, large flake, graphite to meet the
requirements of the Company's offtake partner. This technical goal
has been achieved with the production of 94% GIC flake graphite
from the existing plant and shipments are being made to the
Company's offtake partner.
StratMin is now confidently moving forward with organic growth
plans to expand mine and production capacity with a targeted new
12,000 tpa high-grade flake graphite operation adjacent to existing
production facilities. Prior to investment in a full Bankable
Feasibility Study it is imperative to have assurance that there is
sufficient graphite bearing ore available to support a minimum ten
year mine life. The exploration program that has been executed was
designed to give management this assurance. The values of samples
from pits and trenches at Mahefadok and the similarities to the
resource at the adjacent Loharano deposit are detailed in the
Preliminary Scoping Report and give management the necessary
evidence to invest in a full Bankable Feasibility Study.
JORC definition drilling was not included in the Preliminary
Scoping Report as this is preferably incorporated in the Bankable
Feasibility Studies to more cost effectively include all the
testing required for final mine design, scheduling and engineering
works. The design of a follow up drilling program for this purpose
has already commenced.
The next stage of this project is to complete the studies and
independent verification required to a level that will enable the
company to attract project finance for the expansion. This is a
more thorough and detailed approach than was required for the
current pilot plant, but is a necessary step to bring in
significant project finance and avoid the dilution of equity
funding expansion.
In parallel to this organic growth strategy the company has
executed a complementary corporate growth strategy to propel
StratMin into a mid-tier global graphite company. Information on
this is contained in separate announcements.
Brett Boynton, StratMin's Managing Director, commented:
"The results of this successful exploration program demonstrate
that StratMin can cost effectively add resources to the portfolio
as required.
"Our approach is focused on risk mitigated growth with modular
expansion of a size and scale we can comfortably control. We are
just doing more of the same thing the team has proven successful
at. We don't need to drill out massive resources, we know there is
additional graphite in our portfolio and we will only invest
capital proving it up as we need resources to meet expansion
requirements. We understand that financiers need to see a minimum
mine life and so we will meet those requirements to secure that
source of lower cost capital for expansion.
"Over the long run I am confident this approach will enable
StratMin to build a sustainable and scaleable, low cost, business,
without taking on the commercial risk our peers have adopted."
Competent Persons Statements:
The information in this media release relates to the Preliminary
Scoping Report of the Mahefadok Prospect and is based on
information compiled by the following persons:
Mr Jannie Leeuwner - BSc (Hons) Pr.Sci.Nat. MGSSA (Consultant to
StratMin Global Resources plc), "Author" is a full-time employee of
Vato Consulting LLC. Mr. Leeuwner is a registered Professional
Natural Scientist (Pr.Sci.Nat - 400155/13) with the South African
Council for Natural Scientific Professional (SACNASP). Mr. Leeuwner
has sufficient experience which is relevant to the style of
mineralisation and type of deposits under consideration and the
activity being undertaken to qualify as a Competent Person as
defined in the Note for Mining Oil & Gas Companies, June 2009,
of the London Stock Exchange and the 2012 Edition of the
'Australian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves' (JORC Code). Mr. Leeuwner consents to
the inclusion of the information in this release in the form and
context in which it appears.
Mr Jonathan Robbeson - BSc (Hons1), MEconGeol, (CP Geo)
(Consultant to StratMin Global Resources plc), "Co-Author", is a
full time employee Signature Gold Limited and is a registered
Chartered Professional (Geology) with the Australian Institute of
Mining and Metallurgy (AusIMM - 304542). Mr Robbeson has sufficient
experience that is relevant to the style of mineralisation and type
of deposit under consideration and the activity being undertaken to
qualify as a Competent Person as defined in the Note for Mining Oil
& Gas Companies, June 2009, of the London Stock Exchange and
the 2012 Edition of the 'Australian Code for Reporting of
Exploration Result, Mineral Resources and Ore Reserves'. Mr
Robbeson consents to the inclusion in the report of the matters
based on his information in the form and context in which it
appears.
Enquiries
For further information please visit www.stratminglobal.com or
contact:
+44 (0) 20
StratMin Global Resources Plc 3691 6160
Laurie Hunter (Chairman)
Strand Hanson (Nominated & Financial
Adviser) +44 (0) 20
James Spinney / Ritchie Balmer 7409 3494
+44 (0) 20
Beaufort Securities (Sole Broker) 7382 8311
Jon Belliss
Blytheweigh (Financial PR) +44 (0) 20
Halimah Hussain / Megan Ray 7138 3204
-ends
This information is provided by RNS
The company news service from the London Stock Exchange
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