Galaxy Resources moves shipment forward

Galaxy Resources moves shipment forward

THE BOURSE WHISPERER: A recent run of solid production from the Mt Cattlin spodumene project of S&P/ASX 300 Index company Galaxy Resources has resulted in the re-scheduling of the company’s second shipment of spodumene to China to mid June 2011, a month earlier than expected.

Production at Mt Cattlin, located near Ravensthorpe in Western Australia, totalled 12,778 tonnes of spodumene for April and May, with May’s production accounting for 7,185 tonnes.

The plant produced 3,891 tonnes in the last fortnight, which represents around 75% of its annual design rate.

Galaxy has also been able to greatly improve plant utilisation at Mt Cattlin, enabling the company to report above-budget utilisation rates, with the concentrator recently averaging an on-line utilisation of 84% (compared with design of 85%).

The mining operation provided sufficient ore on the ROM pad at above-design grades over the period. The crushing plant has also performed well and has mostly operated above design rates.

Galaxy Resources managing director, Iggy Tan, said he was pleased to report the growth in production at Mt Cattlin.

“We have reached a stage where the Mt Cattlin operation is established, stable and consistent,” Tan said in an announcement.

“The whole operation is performing solidly, thanks to the persistent hard work of our Mt Cattlin team.”

In addition to the revised shipment timetable, Galaxy has increased the shipment’s volume to 17,000 tonnes from 12,000 previously.

The “MV Karine Bulker” has been booked to transport the product to the Port of Zhangjiagang in China.

As with its initial shipment, Galaxy expects to ship its second load of product from the Bunbury Port as it finalises long term export arrangements with the Port of Esperance.