Firering Strategic Minerals plc (LON:FRG) Independent Non-Executive Director Vassilios Carellas caught up with DirectorsTalk for an exclusive interview to discuss the recently awarded exploration licence adjacent to the existing site , increasing production, existing stockpiles, and quicklime production in Q4.
Q1: Vassilios, the increase in potential resource size of 60 to 70 million tonnes is significant. Can you explain how large the existing resource is, and potential increase in resources, in terms of potential life of mine?
A1: The current resource Firering Strategic Minerals has under license is just over 70 million tonnes of material so if one puts that into context, in terms of value in the ground, that’s roughly around just over $3 billion worth of material.
Now with this additional license here, where we already have some drilling information over this area, we believe that we’ll be able to double that resource, so you’re potentially adding another 60 to 70 million tonnes of material.
So, quite significant for the operation going forwards.
Q2: I understand the existing plant can produce approximately 200,000 tonnes of quicklime, is that right?
A2: That’s correct, yes. We’ve got eight kilns, each one does about 100 tonnes of quicklime a day and if one takes into account the utilisation and availability, you’re looking at about that number.
Q3: At a later point, perhaps in the medium, you could consider increasing production capacity based on the resource size?
A3: Yes, based on the current resource size, one could definitely do that, let alone the additional potential resources we have.
Obviously, the focus at the moment is to get all eight kilns operational but certainly in the back of our minds, we’re certainly looking at potentially, once we’ve got that up and running properly, all eight kilns, is to look at potentially expanding.
Q4: Just going back to the existing plant. I recall that you actually already have an existing stockpile ready for production, what’s the size of the stockpile and how long will it last before you need to start mining?
A4: Firering Strategic Minerals has got two stockpiles roughly about 150,000 tonnes each and so with the commissioning and ramp up, that should easily last us about a year.
Q5: Finally, just to confirm, are you still expecting first quicklime production in Q4 this year?
A5: Yes, we are. As per the update we put out the other week, we’re still on track for getting the first kiln going in Q4 this year so it’s all hands on deck and full steam ahead.
