Syrah Resources Provides Balama Production Update

Syrah Resources Limited advised that its Balama Graphite Operation has continued progress on ramp up and optimisation throughout Q2 2018. Reagent dosing and the secondary grinding circuit utilisation have improved significantly, although overall graphite recovery and production volumes remain impacted by inconsistent performance of the flotation level sensors. A small number of replacement flotation level sensors were trialled, but have not met expectations. As previously indicated, the Company had forecast 40,000 tonnes of graphite concentrate production for H1 2018, but currently expects to produce between 32,000 and 34,000 tonnes in the first half.

Volume throughput and feed grade in the front end of the plant, and the filtration, drying, screening and bagging lines are performing well. Minor ramp up issues have been resolved through normal operating processes during the quarter to date. A planned maintenance shut carried out over the May / June month-end confirmed that the performance and condition of the dryers was positive following the fines dryer repair in April.

The Company has generated an alternative option for improving flotation cell level management using an engineering solution for the original sensors, and early indications are that improvements will be achieved. Syrah also continues engagement with a broader range of Chinese and Brazilian experts to improve cell level management. The Company expects to materially improve flotation level sensor performance from now into the early part of the third quarter. With resolution of the level sensor issue, production of 160,000 tonnes1 for 2018 remains achievable.

Chief Operating Officer Julio Costa, appointed on on 4 June, provides significant onsite support to the operations team to further improve and optimise plant performance. Syrah will provide a further update on progress at the Quarterly Activities Report.


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