Stratmin - Operational update in London

Stratmin Global Resources PLC Operational Update
Source: UK Regulatory (RNS & others)
RNS Number : 3756P

Stratmin Global Resources PLC
17 February 2016

Operational update

StratMin Global Resources Plc (AIM: STGR), London's only listed graphite production and exploration company, announces continued success in its ongoing operational improvement programme at its Loharano deposit.

1. StratMin has successfully completed the current stage of plant refurbishment with the upgrade to the primary mill, further enhancements to the floatation circuit and commissioning of new dewatering equipment.

2. The final stage of the refurbishment includes new milling and drying units and mining fleet. This will be funded with proceeds from the completion of the second tranche of funding totalling GBP1.5 million which is due from Bass Metals Ltd (as first announced on 2 September 2015) which is due no later than the end of March 2016.

3. The plant has this month produced +94% TGC grade concentrate, on demand and at volume for the first time.

4. The expansion of the team with a highly experienced diesel mechanic at the start of the year has enabled a detailed maintenance program to be instituted resulting in a significant reduction in unplanned maintenance time losses.

5. Despite very heavy rains throughout January, the Company has had continued operations and sales.

6. Sales have continued to increase with new buyers from India placing repeat orders and first shipments to new buyers from Germany and Austria executed.

7. Product samples have been approved by additional end users in Europe, which clears the first hurdle to further new sales in the months ahead.

8. Mining has moved to the adjacent Mahefedok area in order to bulk test ore from that deposit for final engineering and design input into the planned new plant, which the Company intends to construct, subject to available funding.

9. JV partner Tirupati has received the mining license approval for the Vatomaina property and is now waiting only on environmental signoff to begin project development, subject to available funding.

Brett Boynton, CEO, commented:

"The team has been working through a methodical programme of operational improvement to maximise the value of every production hour. It is very pleasing to see sustained volume and grade improvements and the immediate impact of our new diesel mechanic on the performance of key equipment.

With the plant in an improved operational state, we decided to open up Mahefedok and bulk test the new ore zone on a commercial scale over an extended period ahead of finalising engineering on the new plant.

The commitment now is to apply the same vigour at the corporate level to manage costs so that we maximise the value of each additional ton produced and sold.

Everything we have accomplished has been without a break in production so we have utilised to the full extent the cash flow from operations to fund progress."