15th Oct 2014 07:50
LONDON (Alliance News) - Stratex International PLC saw its shares rise early Wednesday after it said its partner on its Muratdere copper-molybdenum project in Turkey had made good progress on a detailed feasibility study, with high-grade copper concentrates confirmed by metallurgical testing.
In a statement, Stratex said flotation testwork of supergene material averaged 80% recovery of sulphide-copper, with concentrates averaging 33.6% copper. It added that 11% of the copper within the supergene material is non-sulphide copper, which is not possible to recover with flotation.
"Our partner, Lodos, has made good progress with the detailed feasibility study. The metallurgical testwork has demonstrated encouraging recoveries of copper in concentrate, together with significant recoveries of gold, silver, and molybdenum. Major engineering consultancy Jacobs Engineering Group has been appointed as process engineer for the project and Turkish consultancies are undertaking conceptual mine design and preparing tenders for mining and for the processing plant," Stratex Chief Executive Bob Foster said.
The company added that development of the flowsheet and equipment selection is well-advanced, a forest permit application has been submitted for technical drilling of the tailings dam area, and it expects the final feasibility study, which is not dependent on the forest permit approval, by the end of 2014.
When Lodos completes the feasibility study, it will vest at 70% of the project and Stratex will at that point whether to contribute to the further development of the project or be diluted. Stratex's other options may include the sale of its 30% shareholding in the project either to Lodos or to a third party. Should it decide to contribute, all subsequent costs will be shared pro rata by Lodos and Stratex.
Stratex shares were up 3.8% at 2.18 pence early Wednesday.
By Steve McGrath; [email protected]; @stevemcgrath1
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