Chromex Mining Plc (CHRX.L: Quote) said on Monday it received mining rights for platinum group metals and gold at Stellite chrome project on western limb of the Bushveld complex in South Africa.
The AIM-listed company said it was currently mining chrome at the 32 million tonne Stellite mineral resource and the amendment to its mining rights opened the way for it to extract platinum group elements (PGE) and gold from the Stellite plant tailings stream.
Chromex said it would conduct a series of tests on the tailing streams to determine the economics of adding a PGE flotation treatment plant to the gravity concentration plant currently under construction.
The presence of PGE may substantially improve the economics of the lower grade reefs, Chromex said in a statement.
We have been encouraged by results from early test work and look forward to developing our understanding of the economics of PGE extraction and treatment, which we expect will further underpin the already robust economics of the Stellite chrome project, Chromex Chief Executive Russell Lamming said.
At 0815 GMT, Chromex shares were indicated up 3 percent at 17.5 pence. (Reporting by Usman Merchant in Bangalore; Editing by Gopakumar Warrier)
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