Metals Australia Ltd (ASX:MLS) has welcomed outstanding results of electrochemical (battery charging and durability) test work on the premium battery grade spherical graphite from the high-grade Lac Rainy Graphite Project, located in one of the world’s premier graphite regions in Quebec, Canada.
The results build on the spherical graphite test work already completed which demonstrated that very high- yields of high-quality spherical graphite can be purified to battery grade using the low temperature alkaline purification method with an acid wash lifting the spherical graphite to premium battery-grade, 99.96% Cg purity.
The spherical graphite (SpG) and electrochemical test work was carried out by the specialist graphite testing group, ProGraphite, in Germany, on Lac Rainy flake graphite concentrate grading 96.3% Cg.
“The battery test work results delivered from the Lac Rainy graphite concentrate are outstanding,” Chairman, Mike Scivolo, said.
“Not only have we demonstrated high yields of premium battery grade spherical graphite from our project, but we have now confirmed this high-quality battery anode material has excellent battery charging and durability properties.
“These results provide a stepping-stone for Metals to proceed to the feasibility study stage on our existing mineral resource, to demonstrate the strong economic potential of the project to deliver high-grade flake graphite concentrate as well as premium-quality spherical graphite into a North American market which has unsatisfied and rapidly growing demand for such products.
“The results confirm that Lac Rainy is in the top tier of high-quality graphite projects, and we will now rapidly advance the project towards development. At the same time we hope to significantly expand Lac Rainy’s mineral resource potential while advancing discussions with potential offtake and downstream development partners.”
Next Steps
Pre-Feasibility to Definitive Feasibility Study on High-Grade Flake Graphite Production:
Having proven that Lac Rainy can generate high-quality spherical graphite with outstanding battery anode charging and durability qualities, the company can now rapidly advance the project towards development.
Metals intends to commence a Pre-feasibility Study (PFS) and transition to a Definitive Feasibility Study (DFS) on the development of mining and flake graphite concentrate production at Lac Rainy.
The existing JORC 2012 Indicated and Inferred Mineral Resource of 13.3Mt @11.5% Cg includes high-grade Indicated Resource of 9.6Mt @13.1% Cg (and Inferred Resource of 3.7Mt @7.3% Cg). In addition, Lac Rainy has a JORC (2012) Exploration Target Estimate of 7.3Mt to 14.6Mt @7.5% Cg to 12.5% Cg for an additional 0.55Mt to 1.825Mt of contained graphite using a 5% TGC cut-off.
The previously completed Scoping Study on the Lac Rainy project, managed by DRA Global, demonstrated strong cashflow potential at an operating cost estimate of US$433/t and over 100% cashflow margin at an average flake graphite concentrate price of US$885/t.
This is based on production of nearly 100kt per annum of 96.7% Cg flake graphite concentrate over a 14-year period and capital payback within four years. The applicable selling price of flake graphite concentrate has increased by 20% to 40% since completion of the Scoping Study.
For further information please visit: https://metalsaustralia.com.au/
