13 Apr 2012 07:00
StratMin Global Resources plc
(AIM: STGR)
UPDATE ON INVESTMENT IN GRAPHMADA GRAPHITE PROJECT
StratMin Global Resources Plc (AIM: STGR) ("StratMin" or the "Company") is pleased to provide an update to shareholders on the Company's 15% investment in Graphmada Equity Pte Ltd ("Graphmada").
Summary
·; Results of a Scoping Study / Technical Review indicate potential ore volume of approximately 6 million tonnes, at an average grade of 12% Carbon;
·; Completion of 12,000 tonne per annum graphite processing plant on track;
·; Test mining and trial production expected to commence in current quarter;
·; Based on current market prices for high carbon, large flake graphite, estimated annual production to produce $18 million gross revenues, over a minimum 20 year anticipated life of facility;
·; Graphmada's strong underlying fundamentals, and near-term production visibility, likely to accelerate separate stock market listing of the business.
In January, the Company announced an initial investment in Graphmada, an advanced stage graphite mining and production company with operations in Madagascar. The Company acquired an initial 15% interest and has been working with Graphmada to fulfil its goal of becoming a low-cost producer of premium quality flake graphite for the global market.
Background
Graphmada has recently commissioned a Scoping Study/Technical Review to evaluate all data obtained to date in preparation for a trenching/drilling program to delineate a maiden Joint Ore Reserves Committee (JORC) compliant mineral resource estimate. This study included a review of all trenching work, geologic mapping, geophysics and hand sampling undertaken at the initial mine site. Preliminary grade and tonnage modelling of the approximately 30 graphite lenses identified indicate that each contain on the order of approximately 200,000 tonnes of graphite ore with an average grade of about 12%. At this stage, preliminary estimates put the graphite ore volume at approximately 6 million tonnes. Independent metallurgical testing has also been underway with initial results confirming premium quality, jumbo flake graphite.
Note: As a result of the limited exploration work done to date, the resource category can merely be described as a Geologic Target not yet making it to the resource classification as specified by JORC.
Excellent progress has been made toward the construction of the graphite processing plant in Madagascar. This plant has been designed to produce approximately 12,000 tonnes per annum at full capacity. StratMin has been working closely with the Graphmada team to help ensure the project meets the proposed development timelines. Despite suffering delays due to Cyclone Giovanna, Graphmada believes it is still on track to complete plant construction toward the end of April. Graphmada is confident in the size and quality of the resource base and plans to commence test mining and begin trial production in the current quarter.
Graphmada holds additional graphite concessions in the area which the company believes could contain substantial quantities of graphite equivalent in resource size and quality to the single deposit targeted in the scoping study.
StratMin is an investing company focussed on seeking out investment opportunities in the natural resource and extractive industries sector. The Group's objective is to take meaningful ownership positions of operating companies and assets that have potential for significant growth, whose value can be enhanced with our capital and expertise.
Gobind Sahney, Chairman of StratMin, said: "We are delighted that our initial views on the strong underlying fundamental strengths of the Graphmada business have been borne out by the results of the recently received Scoping Study. We are increasingly optimistic that our investment in Graphmada will produce significant and demonstrable near-term returns for our shareholders with a separate stock market listing of the business during 2012 now being actively considered and progressed".
Enquiries:
StratMin Global Resources Plc
Gobind Sahney +44 (0) 207 467 1700
Libertas Capital Corporate Finance Limited
Sandy Jamieson +44 (0) 20 569 9650