JOHANNESBURG (miningweekly.com) – Aim-listed graphite producer Stratmin Global Resources has taken numerous steps toward the technical development of its Madagascar-based Lohorano operation, installing a pebble mill and scrubber, enabling the plant to produce graphite concentrate of up to 92% carbon, Stratmin MD Manoli Yannaghas said, reflecting on the group’s performance for the six months ended June 30.
At the start of the year, the plant was unable to produce concentrate with a carbon content greater than 80%; however, following a redraw of the plant flow sheets, an attrition stage was added in March that allowed the new plant set to deliver up to 92% carbon concentrate.
“Having demonstrated the ability to produce commercial-grade concentrate, the Lohorano plant carried out production runs between April and July that consistently produced saleable graphite on a one-shift-a-day basis.
“This product was subsequently sold to two recognised graphite marketing firms in the US and Europe,” Yannaghas said in a statement on Monday.
He added that the two secured sales contracts had extended Stratmin’s reach into the European and US graphite markets.
“I am confident that this significant step forward will lead to long-term relationships and agreements for the company,” Yannaghas commented.
Further, technical improvements in the third quarter were also carried out and included an upgrade in the dewatering process, improved grade consistency in the concentrate as a result of further development in the flotation process and more accurate screening capability.
Stratmin had also upgraded its maintenance department and supply chain to decrease production delays owing to the acquisition of spare parts.
In terms of exploration, a new exploration programme was started at Lohorano in June, which focused on two additional targets within the licence area, both of which had similar surface characteristics to the existing deposit area.
At present, these two areas were the subject of geophysics, pitting and trenching, with a view to advance future drilling.
“As well as this exploration, the company continues to refine its mining plan covering the existing resource to increase mining efficiency,” Yannaghas outlined.
Stratmin also successfully raised £2.5-million in an equity placing in March, with part of the proceeds being used to fully repay the outstanding debt owed to investor Darwin Strategic.
“The company has also expended great efforts in redesigning its financial controls to better allow it to plan, control and understand the costs associated with the business,” Yannaghas pointed out.
Stratmin posted a loss for the period of £1.3-million and a loss a share of £1.55.