company intent

An article which may have been posted before possibly.
Taken from the Port Lincoln local paper

Partners wanted for Uley graphite mine to begin operation
NATASHA EWENDT
04 Feb, 2010 12:30 AM
THE Uley graphite mine could start operating again in the near future, with exploration company Strategic Energy Resources looking at prospective partners.


A recent resource upgrade from an inferred resource to an indicated resource has boosted the mine's positive outlook, providing greater certainty that has drawn interest from local and international potential partners.



Shares in the company increased 18 per cent after the announcement of a 4 million tonne total resource, a 25 per cent increase on the previously estimated 3.2 million tonne inferred resource, with an exploration potential of 25 to 150 million tonnes.



The Victorian-based company hopes to have the mine, 23 kilometres from Port Lincoln, back in business as soon as possible.



Managing director Mark Muzzin said the project had been the main focus for SER over the past year, and the impressive indicated resource should attract a partner in the near future.



Once a partner and an off-take agreement are secured, work can begin.



"There has been contact with a number of potential partners, so I'm quite confident the project will be moving forward," he said.



"It's been a tedious process getting there, but it's starting to look like we're coming into its golden time."



The mine closed in 1993 due to a drop in graphite prices and rise in shipping rates, both of which had since turned around, Mr Muzzin said.



The infrastructure is still on site, but will need some work.



Water could also be an issue, with the chance more may be required than is provided from the site's sole pit.



"We've got the infrastructure, power, gas and pipeline water, it's close to the port, and the caretakers have done a brilliant job of looking after the mine site, so hopefully all it will need is some refurbishment and we could hopefully be operational within a short time.



"Water is something we are addressing (but) it's not a deal-breaker for potential partners."

Patience will be rewarded, the right partners found, then we have a viable business. I feel 3c SP is low at this stage with cashflow not too far away. All IMHO

Regards

Pixby