THE Uley graphite mine south of Port Lincoln could be back in operation early next year.
The company behind the project, Strategic Graphite, soon to be known as Valence Industries, is set to start processing stockpiled graphite this year.
The company plans to start production and sales from a new open pit and processing facility next year with the aim of bringing production up to 50,000 tonnes a year.
A scoping study has indicated the ability to produce 50,000 tonnes a year at a mining and processing cost below $550 a tonne with an average selling price of US$1400 a tonne.
Sales of the stockpiled granite, which amounts to more than 8000 tonnes, are expected to bring in $12 million over the next year.
The company also plans to raise finance of $7.5 million to $10 million before listing on the share market by the end of the year to fund the Uley project.
The Uley graphite plant was previously capable of producing up to 14,000 tonnes of graphite a year before it was shut down in 1993.
The deposit contains disseminated, high-grade flake graphite and the mineralisation is near surface, with the graphite produced from the former operation accepted by many traders for its high quality.
The project has an indicated and inferred resource of 6.6 million tonnes at 8.7 per cent graphite.
The Uley graphite mine south of Port Lincoln could be back in operation early next year.
This story Administrator ready to work first appeared on Nanjing Night Net.