(Sharecast News) - Minerals processing company Tri-Star Resources updated the market on its antimony-gold processing facility in the Port of Sohar Free Zone, located in the Sultanate of Oman, held through its 40% interest in Strategic & Precious Metals Processing (SPMP) on Tuesday.
The AIM-traded firm said it had produced antimony metal at the "world standard commercial grade" of 99.65%, adding that its focus was now on the rapid scaling of production, having proven the plant's technology.
It said expressions of interest from potential customers were equal to almost double the annual combined capacity of 20,000 tonnes of antimony metal and antimony trioxide.
It said it had an advanced agreement for the supply of approximately one third of the feedstock required for 2020, and was in discussions with other suppliers for the balance.
Tri-Star also said it was producing gold dore at a grade in excess of 25%, up from 5% in October, with the first sales now made.
"I am delighted that the major milestone of producing antimony metal at a grade of 99.65% has been passed; this proves the metallurgy of the process and enables us now to focus on full-scale commercial production," said chairman Adrian Collins.
"To this end, we are advancing offtake agreements with potential buyers keen to diversify away from their reliance on the current dominant Chinese suppliers; expressions of interest have been received equal to almost double our anticipated annual output of 20,000 tonnes of antimony metal."
Additionally, Collins said the gold circuit was working well, and the first sales of gold had now been made, with SPMP continuing to improve the grade, now producing gold dore at a grade in excess of 25%.
"Given the robust market fundamentals for our products including high-grade antimony ingots, antimony trioxide and gold dore together with the planned ramp up of production, SPMP is at a tipping point, which we believe will see shareholders rewarded for their support."
At 1530 GMT, shares in Tri-Star Resources were up 17.74% at 36.5p.
16 Jul 2014 09:09