Galaxy Resources Limited (ASX:GXY) Commences Commissioning of Lithium Concentrate Facility at Mt Cattlin
Perth, Sep 8, 2010 AEST (ABN Newswire) - Emerging lithium producer, Galaxy Resources Limited (
ASX:GXY) (PINK:GALXF), is pleased to announce that it is has commenced commissioning of its lithium concentrate facility at Mt Cattlin.
Commissioning of the processing plant commenced this week with the energisation of the crushing plant switch room and the energisation of the heavy media plant switch room will follow later in the week.
The process of commissioning the crushing circuit will commence with directional testing of all motor drives followed by tracking of all conveyor belts in the circuit. Once completed, low grade ore will be introduced into the crusher and the fine ore bin will be filled.
Once the heavy media plant switch room is energised, directional testing of all the motor drives in the water circuit and spiral plant will be conducted after which water will be introduced into the circuit and tested for leaks.
Fine crushed ore will then be moved forward from the fine ore bin and fed to the two stage heavy media separation circuit.
Galaxy Resources Managing Director, Mr Iggy Tan, said the completion of construction and commencement of commissioning at Mt Cattlin was achieved on schedule and on budget.
"Over the coming weeks, spodumene throughput will be progressively ramped up until the design capacity is reached on a continuous basis," Mr Tan said.
"The final spodumene product will be trucked to the Esperance Port by local haulage contractor, Esperance Freight Lines.
"Galaxy and the Esperance Port Authority are in the final stages of ensuring our spodumene product can be exported to China and we expect to make our first shipment in November," he said.
Financing Update
As announced in the recent quarterly activities report, the loan facility, provided by finance partners China Development Bank (CDB) and Austrian bank, Raiffeisen Zentralbank Osterreich AG (RZB), was slightly delayed as a result of a protracted loan documentation process. The Company still expects the final documenetation to be executed and loan to be drawn down in mid September. When this occurs, the Company expects to receive the full US$105 million (or A$116m at an exchange rate of 0.9 AUD:USD) from the syndicate banks in the loan facility disbursement account and equity account (US$50m reserved for interest and loan repayments). Meanwhile, the Company also secured and received a US$14 million short term bridging loan through its cornerstone investment partner, Creat Group, during the delays of the project loan facility. This will be re-paid to Creat Group when loan facility funds become available.
For the complete Galaxy Resources announcement including pictures, please refer to the following link below:
http://www.abnnewswire.net/media/en/docs/63678-ASX-GXY-503851.pdf
About Galaxy Resources Limited
Galaxy Resources Limited (ASX:GXY) (OTCMKTS:GALXF) is an international S&P / ASX 200 Index company with lithium production facilities, hard rock mines and brine assets in Australia, Canada and Argentina. It wholly owns and operates the Mt Cattlin mine in Ravensthorpe Western Australia, which is currently producing spodumene and tantalum concentrate, and the James Bay lithium pegmatite project in Quebec, Canada.
Galaxy is advancing plans to develop the Sal de Vida lithium and potash brine project in Argentina situated in the lithium triangle (where Chile, Argentina and Bolivia meet), which is currently the source of 60% of global lithium production. Sal de Vida has excellent potential as a low cost brine-based lithium carbonate production facility.
Lithium compounds are used in the manufacture of ceramics, glass, and consumer electronics and are an essential cathode material for long life lithium-ion batteries used in hybrid and electric vehicles, as well as mass energy storage systems. Galaxy is bullish about the global lithium demand outlook and is aiming to become a major producer of lithium products.
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