1st May 2014 11:58
LONDON (Alliance News) - Stellar Resources PLC Thursday said the gold treatment plant it purchased for the Clogau gold mine has been shipped, but the director of the Wales operations said gold production will be "limited" in the early stages.
In a statement, Stellar Resources said it expects the gold processing plant to be delivered to Wales on or around May 23.
"The company is aiming to produce the first new gold from the famous Clogau St David's Mine in Wales, for over a decade, over the coming months," Ed McDermott, Stellar Resources' director in charge of the Wales operation, said in a statement.
"Although gold production will be limited in the early stages, it will enable the company to verify the exceptional gold grades achieved in the rehabilitation of the underground workings over the past few years," McDermott added.
Bulk samples from the underground operations are currently being stockpiled at the Clogau mine in preparation for the arrival of the new treatment plant. The manufacturer of the treatment plant is sending one of its technical team to assist with the set up and initial trial runs.
This treatment plant will enable the joint venture partners, GMOW (Operations) Ltd, to begin small scale pilot processing of gold ore previously exposed from the recently rehabilitated underground workings.
GMOW will also be able to more accurately assess and correlate the past year's underground sampling programmes with actual gold recoveries thanks to the plant.
Stellar Resources has an exclusive option agreement with the Crown Mineral agents acting for Crown Estates over the exploration license containing the entire Dolgellau Gold Belt.
The licence contains the historic Clogau St David's gold mine.
Stellar Resources shares were Thursday quoted at 0.420 pence, down 12%.
By Samuel Agini; [email protected]; @samuelagini
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