Chromex Mining Plc (LON:CHX), the AIM-listed mining company focused in South Africa, announced today that it has renewed drilling at the Stellite opencast chrome mine in the Bushveld Complex, South Africa.
The decision to recommence activity at the mine follows improved pricing and chrome market conditions. The board expects the site to produce approximately 20.000 run-of-mine (ROM) tonnes per month, pushing up to double that once an apparatus called 'dense media separation circuit' (DMS) is installed at the plant in Q3 2010. As well as improving margins and efficiencies, it is anticipated the DMS will enable the Company to market a lumpy chrome product in addition to their regular stock of chemical and metallurgical grade concentrates.
Chromex CEO Russell Lamming commented: "Despite the challenging chrome market conditions over the past year we have continued to invest in our operations, channelling our focus into building a cost efficient producing chrome mine at Stellite. In this vein, with market conditions beginning to improve, and a solid orebody containing circa 31.9 million tonnes of chromite to utilise, we feel that the time is right to recommence our mining operations and deliver an uplift in value for shareholders in 2010."
Chromex Mining plc is a dedicated chrome company established to acquire, control and develop chromite mining and processing facilities. It currently has two key mining assets located on the Bushveld Complex in South Africa, which between them have total resources of approximately 41 million tonnes of chromite. Chromex is focused on growing its current resource base with near production projects to supply beneficiated chrome products into the ferrochrome and stainless steel markets. In addition the Company continues to review additional prospects.
