Valence declares maiden reserve in South Australia
PERTH (miningweekly.com) – ASX-listed Valence Industries has reported a maiden ore reserve of 261 000 t of graphite at the Uley project, in South Australia.
Valence officially reopened the Uley mine in November this year, announcing plans to restart production pending the approval of the state government.
MD and CEO Christopher Darby said on Wednesday that the announcement of a maiden reserve at Uley was a significant milestone for the company.
“It underpins our plans for production and commercial sales of graphite. Valence Industries is unique in Australia; we have an ore reserve and a graphite plant in place, with high-grades of flake graphite to process. We forecast an initial life-of-mine of six years for Uley pit 2, with the initial mine production plan processing over two-million tonnes of ore.”
Darby said that the drilling campaign now under way at the Uley pit 2 extension was expected to add to the mine-life, with drill results due in early 2015.
“Based on our Joint Ore Reserves Committee compliant exploration target of 9-million tones to 12-million tonnes, at between 9% and 12% graphite grade, we are confident there is no shortage of graphite to support our production expansion plans.”
The Uley mine was placed on care and maintenance in 1993 due to market factors, and includes a processing plant has the capacity to produce some 14 000 t/y of graphite.
Once regulatory approval was received, the ramp-up of Phase 1 of the operations to full capacity of 14 000 t/y would start. The Phase 2 expansion would see production increase from 14 000 t/y to 50 000 t/y.
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