Flinders Resources Limited (“Flinders”) (TSXV: FDR). Mr. Martin McFarlane, President & CEO, is pleased to provide an update on the wide range of activities that are underway at the Woxna Graphite Mine in Sweden. Highlights include:
- Pumping water from the Woxna mine pit has continued through winter and the depth of the water remaining is now minimal. The process to empty the pit is effectively complete.
- Golder Associates of Sweden has delivered a mining plan for the Kringel graphite mineral resource outlining 4 phases of graphite mining over more than 20 years. The plan is being evaluated by Flinders and has been sent to mining contractors for pricing.
- GBM Mineral Engineering Consultants (“GBM”) has designed a new process flow sheet for the Woxna process plant. While it largely relies on existing equipment, certain enhancements have been made which are intended to improve recoveries of large flake, increase graphite purity and overall graphite recovery.
Bulk samples of fresh graphite mineralisation from the Kringel deposit have been extracted and sent to flotation specialist Aminpro Metallurgical Laboratories in Chile to run a series of graphite processing tests to optimise grinding characteristics and verify flake size, purity and recovery results that are forecast to be achieved from the proposed process flow sheet for the Woxna project. The test results are due in April.
- GBM has completed an audit of all processing plant equipment and listed and specified all items of new equipment that will need to be purchased. GBM has sent requests to suppliers for quotes and delivery schedules for each item to be purchased.
- Woxna personnel have commenced dismantling and inspecting all items of equipment that will be re-used in the new process flow sheet. Once dismantled, each item is cleaned and its condition assessed. Items requiring repairs or maintenance are then sent to local contractors to perform this work.
- Updated and enhanced process control systems have been specified and sourcing has commenced. Laboratory equipment will be upgraded as required.
- Detailed designs for upgrading the tailings storage facility have been received from the Swedish consultants. These will be presented to the regulators in February for approval to proceed. The designs have been sent to several contractors for quotation.
- Updated operating and capital costs as well as revenue projections are expected to be finalised in March 2013 and compiled as part of a Preliminary Economic Assessment of the Woxna graphite project.
We continue to monitor European graphite markets. In line with global trends, graphite demand and prices fell during the second half of 2012. Slower economic growth in Europe also contributed. In response, and given the impact of current graphite prices, Flinders is examining options to further reduce both operating and capital costs for the Woxna graphite project. In addition, Flinders is considering advancing studies to enhance shareholder returns via expanding graphite capacity, adding higher value graphite products and strategic opportunities.
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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