Valence Industries Graphite Production Status Update

Melbourne, Australia (ABN Newswire) - Valence Industries Ltd. is pleased to provide an update on its wholly owned Uley Graphite(TM) mining and processing facilities in South Australia.


Processing Approval Status

As has been advised to the market, the Company is in the process of finalising regulatory approvals for full scale mining and processing at its Uley Graphite(TM) facilities.

The Company has an Approved Development Plan (ADP) for its operations. Valence Industries has been in close consultation with the South Australian Department of State Development (DSD) in relation to the final stage of approval, the transition to a Program for Environment Protection and Rehabilitation (PEPR).

Final amendments to the PEPR program are being agreed with the DSD and are being documented. Valence Industries understands there are no substantive items outstanding for the PEPR and has received indications from DSD that formal approval can be expected in December 2014.


Screening & Grading Approval

In preparation for the full PEPR approval, Valence Industries advises that it has received approval from DSD to commence the screening and grading of the Company's run-of-mine (ROM) stockpiles under the existing ADP permit.

This significant step in the formal approval process will accelerate Valence Industries' ability to process commercial quantities of graphite , once the full PEPR approval is obtained. This approval allows the Company to crush, screen and grade the existing 174,000 tonnes of ROM stockpiles.

The stockpiles have an average grade of 6.23% gC (graphitic carbon) for an estimated 10,800 tonnes of contained graphite. The screening and grading process will prepare the stockpiled material for final processing through the Phase I plant once full approvals are obtained .


Graphite Processing Plant Status

Valence Industries confirms the successful pre-commissioning testing of the Phase I processing plant over the last month. The quality of graphite produced from test processing has exceeded initial expectations both in terms of flake size and purities of graphitic carbon.

Initial volumes from the fines stockpiles has been passed through the refurbished and upgraded internal circuit as part of the construction testing and pre-commissioning of the plant. The test processing has taken material through to size-screening and bagging using the new bagging equipment. All stages of the processing circuit - including flotation, thickening and drying - are operational and working as intended .

The trials have produced flake graphite at higher purity levels and in larger flake sizes than was expected from the fines stockpile material. A significant percentage of the graphite has fallen in to the larger flake-size ranges including +35 mesh (Jumbo Flake), +50 mesh (Large Flake) and +80 mesh ( Medium Flake). This program has also verified that the Uley Graphite(TM) resource consists entirely of flake with no amorphous graphite.

The first stage of production will be to treat and package for shipping the existing preprocessed fines stockpile. The next stage of production will be to fully process existing ROM stockpiles in accordance with the Company's production plan. In 2015 Valence Industries will look at introducing higher-grade fresh ore from the new Uley Pit 2 in order to maximise economic productivity of the Phase I processing.


About Valence Industries:

Valence Industries Ltd. (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.



Contact:

Valence Industries Ltd.
Christopher S. Darby, CEO & Managing Director
info@valenceindustries.com
+61 8 8418 8564