25th Feb 2014 11:52
LONDON (Alliance News) - Shares in Stellar Resources PLC rose Tuesday morning after the mining company said it bought up a fully integrated gold processing plant for its Clogau Gold Mine in North Wales.
Stellar Resources said the plant it bought is capable of processing up to two tonnes of ore per hour, and will be used to process previously identified high grade areas that have been re-opened as part of the underground clean-up operations which have been ongoing over the past 18 months.
It said the new processing plant is currently being manufactured in South Africa and is expected to be delivered to Dolgellau in around eight weeks.
"The purchase of this gold processing plant will allow the joint venture parties to more accurately assess the gold grades of some of the unmined areas of the Clogau Gold Mine and also assist in providing valuable information regarding metallurgical recovery of the gold from the Clogau ore," said Chairman David Lenigas in a statement.
Stellar Resources has a 49% investment in GMOW Operations Ltdd, which has the exclusive Option Agreement with the Crown Estates over the exploration licence covering an area in Wales, including the Clogau Gold mine.
Shares in Stellar Resources were trading 10.4% higher at 0.525 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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