The Conversation (0)
Flinders Resources Ltd. (TSXV:FDR) released an updated resource estimate for its Woxna graphite project in Sweden, including two 100%-owned flake graphite deposits at Gropabo and Mattsmyra: from 2.8Mt at 10.7% compacted graphite (Cg) to 7.7Mt at 9.3% Cg. According to CEO Blair Way, “Expanding the resource base so close to our fully operational processing plant at Woxna, will provide more flexibility and confidence when planning for future expansions from the current 13,000t/yr graphite production capacity.”
The updated resource estimates are as follows:
Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, socio-political, marketing or other relevant issues.
As quoted in the press release:
Flinders Resources Limited (“Flinders” or the “Company”) (TSXV: FDR) is pleased to announce a near three times expansion of flake graphite mineral resources at the Company’s Woxna graphite project in Sweden. All mineral resources lie upon fully granted Mining Leases, within the vicinity of the operational Woxna graphite mine.
This significantly expanded mineral resource, calculated in accordance with Canadian Institute of Mining, Metallurgy, and Petroleum (“CIM”) guidelines, includes for the first time two 100%-owned flake graphite deposits at Gropabo and Mattsmyra. These resources lie upon fully granted Mining Leases, located 18km and 22km respectively from the Woxna mine and processing plant. These new resources add to the previously announced mineral resource at the Kringelgruvan mining lease (refer to Flinders’ release dated September 3, 2013 Tables 1 and 2). Flinders’ 100% Woxna project is comprised of four separate mining concessions.
As a result of the new estimated mineral resources for the Woxna Project, effective March 24, 2015, there is no longer a current preliminary economic analysis (“PEA”) for the Woxna Project and the previous PEA released by the Company in 2013 is no longer current or valid as it does not consider these additional mineral resources.
Flinders restarted the Woxna plant and mine in 2014 and is currently mining the Kringelgruvan resource and producing graphite products for the European market. Flinders continues to operate the Woxna facility and grow the customer base for Flinders’ products.
The mineral resource at Mattsmyra was drilled within an area approximately 2000m length by 100m width. Mineralization was intersected on all drill sections and is known to a depth of at least 180m below the surface and remains open. Mineralization strikes northwest-southeast, and dips varies between 70 and 80 degrees to the southwest. Mineralization is present as a five main mineralized bodies and ten smaller mineralized bodies. The thickness in the section of the plane was usually more than 23m, but varied between 8m and more than 155m. Mineralization at Mattsmyra remains open along strike and at depth, and geophysical data suggests potential for significant expansion.
The mineral resource at Gropabo was drilled within an area approximately 500m length by 100m width. Mineralization was intersected on all the drilling sections and is known to at least a depth of 60m below the surface. Mineralization strikes northwest-southeast, and dips varies between 65 and 85 degrees to the southwest and is present as a four main mineralized bodies. The thickness in the section of the plane was usually more than 6m, but varied between 1m and a little more than 25m. Mineralization at Gropabo remains open along strike and at depth.
The Mattsmyra and Gropabo mining leases are valid until 2025 at which time they are automatically renewed for an additional 10 years if in production. The Kringelgruvan mining lease is valid until the end of 2016 at which point it is automatically renewed for an additional 10 years for as long as it remains in production.
Flinders Resources CEO, Blair Way, said:
Woxna’s measured and indicated graphite resources have increased approximately three-fold from 2.8Mt @ 10.7% Cg to 7.7Mt @ 9.3% Cg with this updated measured and indicated resource calculation. All resources are contained within granted mining leases. Expanding the resource base so close to our fully operational processing plant at Woxna, will provide more flexibility and confidence when planning for future expansions from the current 13,000t/yr graphite production capacity. This is a significant milestone for our business in Sweden.
Click here to read the Flinders Resources Ltd. (TSXV:FDR) press release
Click here to see the Flinders Resources Ltd. (TSXV:FDR) profile.