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Production starts at Mount Cattlin spodumene-tantalum project in Australia

Galaxy ResourcesLtd. on April 1 reported the start of mining and processing operationsat its Mount Cattlinspodumene-tantalum project in Western Australia, a 50/50 joint venture with

According to the June 2015 acquisition agreement, General Mining has committed the firstA$7 million required to restart production at Mount Cattlin, as part of a totalA$25 million commitment. General Mining restarted production by March 31, whichmeans that it will get a 14% equity interest in the project this month.

Production will start with an initial five-week program to recoverand stockpile spodumene and tantalum concentrates from the fines circuit ahead ofcrusher and coarse circuit, which will be commissioned in the June quarter.

Mining of blasted ore in the Dowling pit has begun and will bestockpiled for processing in the June quarter. Recovery of fines material for processingwill begin in the June quarter as well. Initial plant feed will be sourced fromthe existing stockpile adjacent to the plant.

The company aims to increase the throughput rate to 800,000 tonnesper annum by the end of June.

The second optimization phase will continue through the secondhalf of the year to improve yields to between 70% and 75% of throughput, which willbe funded by pre-payments from off-takers.

First delivery remains on target for July/August. The two companiesare finalizing deals with China-based off-takers.