Flinders Resources Limited (“Flinders”) (TSX.V — FDR) provides an update on the ongoing metallurgical work programs at the Woxna Graphite Mine, Sweden.
In December 2012, two one tonne bulk samples, together with representative core samples of graphite mineralization from across the Woxna Kringel mineral resource were sent to flotation specialist Aminpro Metallurgical Laboratories (“Aminpro”) in Chile. Aminpro were commissioned to complete a series of graphite processing tests to optimise grinding characteristics and verify flake size, purity and recovery results.
Encouragingly, initial test results recently received from Aminpro suggests enhanced product specifications and higher graphite purity can be obtained relative to historic production characteristics from Woxna. Therefore, a modified process flow sheet and plant design is being considered to take into account these new and enhanced results. While full metallurgical test results are not due until April 2013, there is sufficient encouragement to suggest that deferring the finalization of the process flow sheet until all metallurgical results are received may yield production and revenue benefits for the Woxna graphite project.
Purchasing of key items of mill equipment will now be deferred until the process flow sheet design is finalised, leading to an expected delay to recommencing graphite production until 2014. Additionally, completion of the Preliminary Economic Assessment of the Woxna graphite project will also be deferred until Q3 2013 to allow all relevant and updated metallurgical and engineering information to be incorporated into this study. Taking this extra time to finalize the design also allows other capital and operating savings currently being investigated to be incorporated.
Mr McFarlane, President and Chief Executive Officer of Flinders states: “Although we have only received initial results from this metallurgical testwork program, we are sufficiently encouraged to defer the anticipated re-start of production from Woxna by up to 9 months, in order to incorporate all updated metallurgical and engineering characteristics into the process design, in anticipation of a better final outcome for the Woxna graphite project.”
On behalf of the Board
Martin McFarlane, President and CEO
For more information contact:
Jim Powell +1 647-478-5806
Certain information set out in this news release may constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, “Forward-Looking Statements”). All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are Forward-Looking Statements. Forward-Looking Statements are often, but not always, identified by the use of words such as “seek,” “anticipate,” “believe,” “plan,” “estimate,” “expect,” and “intend” and statements that an event or result “may,” “will,” “can,” “should,” “could,” or “might” occur or be achieved and other similar expressions. Forward-Looking Statements are based upon the opinions and expectations of the Company based on information currently available to the Company. Forward-Looking Statements are subject to a number of factors, risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the Forward-Looking Statements including, among other things, the Company has yet to generate a profit from its activities; there can be no guarantee that the estimates of quantities or qualities of minerals disclosed in the Company’s public record will be economically recoverable; uncertainties relating to the availability and costs of financing needed in the future; competition with other companies within the mining industry; the success of the Company is largely dependent upon the performance of its directors and officers and the Company’s ability to attract and train key personnel; changes in world metal markets and equity markets beyond the Company’s control; mineral reserves are, in the large part, estimates and no assurance can be given that the anticipated tonnages and grades will be achieved or that the indicated level of recovery will be realized; production rates and capital and other costs may vary significantly from estimates; unexpected geological conditions; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; all phases of a mining business present environmental and safety risks and hazards and are subject to environmental and safety regulation, and rehabilitation and restitution costs; the Company does not maintain insurance against environmental risks; and management of the Company have experience in mineral exploration but may lack all or some of the necessary technical training and experience to successfully develop and operate a mine. Although the Company believes that the expectations reflected in the Forward-Looking Statements, and the assumptions on which such Forward-Looking Statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on Forward-Looking Statements, as there can be no assurance that the plans, intentions or expectations upon which the Forward-Looking Statements are based will occur. Forward-Looking Statements herein are made as at the date hereof, and unless otherwise required by law, the Company does not intend, or assume any obligation, to update these Forward-Looking Statements.
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