Uley Graphite Mine

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Strategic Energy Resources owns the open-cut graphite mine at Uley on the Eyre Peninsula, South Australia. Uley is recognised as an area of world class graphite mineralisation.

The graphite deposit, owned by SER, is part of the Mikkira Graphite Province, one of the largest coarse flake graphite deposits in the world, containing disseminated, high-grade flake graphite.

Discovered around 1910, Uley was worked intermittently since the late 1920s. Exploration during the 1980s led to the re-opening of the mine in 1986, but a sharp decline in world graphite prices in 1992 and an increase in freight prices caused the mine to cease production in 1993.

When in operation the plant was capable of producing up to 14,000 tonnes per year and the aim was to progressively build-up to 20,000 tonnes per year rating the Uley Project as one of the largest in the world.

The mine and processing facility has been under care and maintenance since its closure. The 20 tonnes per hour processing plant is substantially intact and operable, however, requires some refurbishment. Power, water and communication lines are still connected.

The mineralisation is near to surface and the graphite produced from the former operation, was accepted by many traders for its high quality. Inferred Resources are 3.2 million tonnes at 9% total carbon. (see ASX announcements for details and compentent person statement)

The existing plant and metallurgical test work provide a strong platform to undertake a robust feasibility study for a 10,000-20,000 tpy operation. The mine’s products always had good acceptance from customers and provide the confidence to re-approach markets. There is a nearby workforce and substantial infrastructure with exports expected to be made through the deepwater port at Port Lincoln, some 23km away.

Technical evaluation of the resource and optimum processing route has begun. SER is also currently undertaking a review of the market for graphite.