Greenwing Resources Ltd’s (ASX: GW1) management team recently concluded a site visit to its 100% owned Graphmada Mining Complex. Management also held a series of meetings in Madagascar regarding the progression of the Millie’s Reward hard rock lithium project.
The company reports that its Graphmada Mining Complex and infrastructure remains in good condition. The existing mineral resource of 61.9 Mt @ 4.5% fixed carbon can sustain substantially higher production volumes. Greenwing has also commenced auger drilling at its Andapa prospect, which is the company’s secondary graphite asset in Madagascar.
Greenwing has commenced a process to attract strategic investment for its graphite assets, this has come at a time where the Chinese Government has placed restrictions on the export of graphite effective from 1 December 20232, due to this, the company expects this to greatly impact market supply and have a positive impact on future graphite pricing.
A revised Mining Code in Madagascar has passed parliamentary approvals, with World Bank support, and is expected to be enacted as law in the near term, to aid Madagascar’s economic development.
Executive director, Peter Wright said, “Graphmada is in good condition, with the imminent passage of the mining-friendly Mining Code, the potential to capitalize on the substantial progress made to date is considerable, consensus opinion remains strong for natural graphite concentrate pricing. With the Ambatofafana/Mahela mineral resource underpinning potential higher production volumes the Company intends to commence the search for a strategic partner at Graphmada the recently proposed curbs on the export of graphite concentrates from China only heightens Graphmada’s strategic value. Further we see the forthcoming passage of the Mining Code as transformational for the Millie’s Reward project. Host to a remarkable surface signature, inclusive of a 31m trench sample at 3.7% Li2O and rock chip samples up to 7.1% Li2O, we see considerable opportunity at Millie’s Reward.”
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