Graphite Production Update
Perth, July 7, 2015 AEST (ABN Newswire) - Valence Industries (
ASX:VXL) (VLQCF:OTCMKTS) is pleased to provide an update on graphite production at Uley in South Australia.
Highlights
- Production rates increasing
- Graphite shipments scheduled to commence over next 6 weeks
- High proportion of coarse flake graphite production up to +35 mesh (0.5mm)
The production throughput rate at the Company's Uley Graphite(TM) processing plant in South Australia has increased progressively since commencement of production in mid June 2015.
The plant has been operating around the clock, subject to periodic stoppages every few days for on-going process enhancements and calibration. Throughput rates have increased over the past three weeks to the current rate of 15 tonnes per hour, moving towards nameplate capacity of 20 tonnes per hour.
Operational production continues to confirm the ability of Valence Industries to produce very large flake sizes from the existing stockpiles. Larger flake sizes are in demand and typically command a premium price in the market. The existing plant is currently producing more than 71% in the larger flake fractions from existing stockpiles, and is producing a significant 33% of +50 mesh (jumbo flake) and +35 mesh (super jumbo flake).
The Company is pleased with the performance of the plant with purity levels exceeding 89% being achieved at this early stage of production. Purity levels are anticipated to continue to increase as the plant moves to nameplate capacity. The Company still expects to reach nameplate capacity at 20 tonnes per hour in September 2015 as planned.
The Company is processing existing stockpiles with an average contained graphite of 6.3% and will transition to higher grade (12.1%) run of mine material from the new open pit, Uley Pit 2, in Q4 CY 2015.
The combination of increased feed rate and higher grade will allow for increased output capacity.
The Company is building inventories of processed graphite for specific orders (in purity and flake size) to supply existing sales contracts. Sales shipments are expected to commence from site over the next 6 weeks, and will increase progressively as production rates increase.
About Valence Industries Ltd
Valence Industries Limited (ASX:VXL) is an industrial manufacturing company producing high grade flake graphite products for distribution and sale to global markets. Valence Industries owns established processing facilities and infrastructure to manufacture a wide range of graphite product lines for multiple applications and multiple industries. Valence Industries produces and sells its graphite products from its Uley Graphite facilities in regional South Australia for delivery to diversified markets for graphite in the Asia Pacific, Europe and North America. Visit Valence Industries
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