Last checked at 31 Oct 2014 07:00
31 October 2014
Strategic Minerals plc
("Strategic Minerals" or the "Company")
Positive Heavy Dense Media test work results from Cobre material
and Corporate Update
The Board of Strategic Minerals Plc (AIM: SML; USOTC:SMCDY) is pleased to announce that the metallurgical test work undertaken on material from the Company's Cobre project, New Mexico, USA, has demonstrated that Heavy Dense Media ("HDM") product can be produced from the magnetite material.
The sizing and magnetic separation test work on magnetite stockpile samples from Cobre was undertaken at CSIRO's QCAT facilities at Pullenvale, near Brisbane, Australia. Test work has demonstrated that, after screening at 53 micron and one stage of magnetic separation, more than 51% of the material can be made suitable for the HDM end user market. There are various grades of HDM that can be produced, but the coal industry requires that HDM product be largely below 53 micron in size with greater than 96% magnetics.
HDM is a high grade magnetite iron product, used in coal production, water filtration, sintering, magnets and other industries. The coal industry uses HDM in the washing of coals to reduce ash content in the end product.
Below are key specifications of a typical -53 micron HDM product alongside that produced from the test work on the Cobre material. The test work also indicated that a -44 micron HDM product could be produced.
Results Summary Table (-53 micron magnetics - material for HDM market)
Description | Units | Typical Heavy Dense Media | Cobre material |
Nominal minus 53 micron sizing | % | 95-100 | >99 |
Specific Gravity | tonnes / cu m | 4.9 (min); 5.0 (typical) | 5.1 |
Magnetic Content (Davis Tube, 700 gauss) | % | 96 (min); 98 (typical) | 97.8 |
Total Fe | % | 69.5 | 70.8 |
Fe3O4 | % | 95.0 | 96.2 |
H2O | % | 10.0 (max); 7.0 (typical) | 4.12 |
Mr Julien McInally, Executive Chairman, said: "This first phase of test work is very encouraging and demonstrates that the Cobre material can relatively easily be processed to a Heavy Dense Media product. It also represents a positive operational focus under the new direction of the Company toward exploring the HDM market, which is not directly linked to the iron ore price, and can be sold at a significant premium to normal iron ore product."
The Company has started discussions with potential customers in the United States to better understand the market potential and logistics requirements of future product delivery. In addition, further test work will be considered to better understand the best process flow sheet."
Corporate Update
The Company is in discussions with a number of parties on the sale of existing product from the Cobre operation. In addition, the Company has visited a number of projects and is in discussion with vendors for the potential acquisition of projects. Strategic Minerals hopes to give an update on these activities in due course.
For further information, please contact:
Strategic Minerals plc Julien Mcinally Executive Chairman
| +61 408 704 446
|
Allenby Capital Limited Nominated Adviser and Joint broker Jeremy Porter James Reeve | +44 20 3328 5656 |
Tavistock Financial PR Jos Simson Nuala Gallagher | +44 20 7920 3150 |