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Optimisation and Increased Production at Loharano

3 Aug 2015 13:25

RNS Number : 9017U
Stratmin Global Resources PLC
03 August 2015
 



3 August 2015

 

 

StratMin Global Resources Plc

("StratMin" or the "Company")

Optimisation and Increased Production at Loharano

StratMin Global Resources Plc (AIM: STGR), London's only listed graphite production and exploration company, announces that it has successfully completed the second stage of the Loharano plant optimisation.

 

Highlights:

 

· Hourly production rates have been significantly increased and graphite purity levels maintained.

· The plant and processing modifications are now stabilised, therefore the Loharano operation will move to twenty four hour production six days a week during August.

· The upgraded plant has now been running with increased feed, delivering up to 900kg per hour of refined graphite.

· Exploration programme currently underway at Loharano and Mahefadok to deliver the required JORC categorisation for the final feasibility study and enable improved mine planning for existing operations.

· In conjunction with studies for the proposed Mahefadok flake graphite plant, a review is being conducted into hi-tech value added products.

· The benefits of the strategic partnership with Tirupati Carbons & Chemicals Pvt. Ltd ('Tirupati') are positively impacting all levels of the business.

· Issue of shares to Tirupati as compensation for technical services.

 

Loharano Plant Optimisation

 

Following conclusion of the joint venture agreement with Tirupati and the appointment of Mr Shishir Poddar as an executive Director of the Company, a staged optimisation programme was devised to increase the productivity of the Loharano operation. The goal was to leverage the success of the pilot phase in producing >94% purity flake graphite and deliver a stable operating plant capable of producing 6,000 tpa processed flake graphite.

 

Utilising the technical expertise of Mr Poddar in flake graphite operations, initial process modifications were immediately implemented to enable the plant to run at a steady rate and provide a benchmark for further analysis. A review of the operation at this point identified certain bottlenecks in the process and a programme was developed to address these in sequence. The second phase of this programme included modifications to the floatation cells and the process flow.

 

The fabrication and installation of these modifications were handled by the Company's own in-country technical team. This was an important step in demonstrating the Company's ability to operate independently in remote locations, as well as providing the technical team with important information regarding graphite floatation at the site. This collaborative approach with Tirupati is having a positive impact at all levels of the business.

 

The upgraded plant has now been running with increased feed, delivering up to 900kg per hour of refined graphite. This process is being stabilised and the operating hours will be extended to a twenty-four hour operation six days a week during August. Further efficiencies are expected once the plant is in continuous production.

 

The final stage in the Loharano optimisation programme is to add production flexibility into the process, which will enable on demand product variation to serve niche flake graphite applications with stringent qualitative requirements. Upon completion of this stage the present facilities shall become capable to produce tailor made flake graphite with grades of up to 96% purity.

 

Exploration Activities

 

The exploration activities at Loharano and Mahefadok are currently focused on detailed topographical and ground geophysical surveys. This will be followed by further geological mapping and drilling in order to establish a JORC compliant resource definition. A programme of bulk sampling, by trenching and pitting, will be run in parallel to provide bulk samples for in house metallurgical test runs and production testing at the existing plant. This will clearly establish all commercial parameters of the deposit. This programme will deliver the required JORC categorisation for the final feasibility study and enable improved mine planning for existing operations.

 

In conjunction with studies for the proposed 12,000 tpa Mahefadok flake graphite plant, a review is being conducted into forward integration by Stratmin into hi-tech value added products for lubrication, friction materials, exfoliation, energy storage and non conventional energy applications. Further announcements in this respect shall be made forthwith.

 

Issue of shares to Tirupati

 

In accordance with the terms of the binding strategic partnership and joint venture agreement between the Company and Tirupati, more details of which are given in the announcement dated 18 June 2015, 1,972,387 new ordinary shares of 4 pence each in the Company ("Ordinary Shares") (the "Fee Shares") have been issued to Tirupati, at a price of 5.07 pence per new Ordinary Share, as consideration for the first £100,000 instalment due pursuant to technical services provided by Tirupati to the Company. The Fee Shares will represent approximately 1.3 per cent of the enlarged share capital.

 

Application has been made to the London Stock Exchange for admission of the Fee Shares to trading on AIM ("Admission") and it is expected that Admission will take place and that trading will commence on AIM on or around Monday 10 August 2015. Following Admission, the Company will have a total of 150,839,391 Ordinary Shares in issue with each share carrying the right to one vote.

 

The Company has no Ordinary Shares held in treasury. The total number of voting rights in the Company following Admission will therefore be 150,839,391. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

 

 

Brett Boynton, CEO, commented:

 

"I was on site with the technical team during the plant modification and witnessed the long hard hours put in to deliver this excellent result. We are now moving out of the pilot phase and into long-term commercial operations that will take the company into sustainable profitability. Our ongoing optimisation will deliver further yield improvements and enhance the bottom line.

 

"Completion of this pilot phase is a key differentiator between Stratmin and our listed peers. We have a seasoned and successful team that has built and operated a plant that produces high-grade, large flake graphite. We take all of this expertise into the design and delivery of the next mine and plant at Mahefadok and our joint venture project with Tirupati.

 

"Our strategy has been a considered and staged evolution and we couldn't be more pleased with the results over the last couple of months. Despite the promise of more hard work, I know the team is confidently looking forward to the next stage of optimisation and exploration at Loharano and Mahefadok."

 

 

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

 

StratMin Global Resources Plc

Brett Boynton, CEO

+44 (0) 20 3691 6160

Strand Hanson (Nominated & Financial Adviser)

Rory Murphy / James Spinney / Ritchie Balmer

+44 (0) 20 7409 3494

Beaufort Securities (Broker)

Jon Belliss

+44 (0) 20 7382 8300

Blytheweigh (Financial PR)

Halimah Hussain / Megan Ray

+44 (0) 20 7138 3204

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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