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LONDON (Alliance News) - Strategic Minerals PLC on Friday said tests undertaken at its Cobre project in New Mexico in the US demonstrated heavy dense media product could be produced from the magnetite material, sending shares in the company higher in early trade.
Strategic Minerals shares were up 13% to 0.41 pence on Friday, making it one of the best performers in the AIM All-Share.
The metallurgical test work at the site found 51% of the material could be made suitable for the heavy dense media market. Heavy dense media product is a high-grade magnetite iron product, used in coal production, water filtration, sintering, magnets and other industries.
"This first phase of test work is very encouraging and demonstrates that the Cobre material can relatively easily be processed to a heavy dense media product. It also represents a positive operational focus under the new direction of the company toward exploring the HDM market, which is not directly linked to the iron ore price, and can be sold at a significant premium to normal iron ore product," said Strategic Minerals Executive Chairman Julien McInally.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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