Oar Resources Limited (ASX: OAR) has obtained positive preliminary metallurgical test work undertaken on historic drill core from the company’s wholly-owned Oakdale Graphite Project on the Eyre Peninsula, South Australia.
The test work has identified ultra-fine flake graphite, which is in demand and seeing price growth due to its suitability for production of spherical graphite used in battery manufacturing.
Previous test work carried out on both the primary and oxide ores at Oakdale was undertaken on the premise of identifying the coarsest possible grind, which historically attracted higher prices.
The global growth in demand for battery minerals has provided the Company with an opportunity to recommence work on the project with a renewed focus on the fine sized graphite.
According to Benchmark Mineral Intelligence, prices for fine flake graphite increased 44.5% from US$500/t in January 2021 to US$723/t in May 2022. The research group predicts a 650% increase in demand for natural graphite between 2022 and 2035 to cater for the ongoing growth in the global EV market.
Spherical graphite, also known as battery-grade graphite, is the product that is consumed as an anode in lithium-ion batteries. It is manufactured by processing high-grade flake graphite concentrate to an ultra-high purity product of more than 99.95% carbon content. The resulting particle sizes need to be in the range of 10 to 25 microns for use as a battery anode material.
Initial early-stage sighter test work has achieved encouraging TGC grades of 89.1% total graphitic carbon (TGC) with further flowsheet optimization test work aimed at increasing the TGC grade to more than 95% TGC where it is suitable for refining into battery anode material (BAM).
There was a significant portion (up to 58.9%) of ultrafine material, at less than 20 microns, in the sighter test work beneficiated concentrate.
OAR believes in conjunction with Independent Metallurgical Operations (IMO) that further test work can increase the final concentrate grade to greater than 95% to ensure it is suitable for refining into BAM.
OAR sees the below steps as critical for developing a path towards confirming the potential of the Oakdale Graphite Project for use as BAM:
* Conduct beneficiation flowsheet development test work aimed at generating a >95% TGC final concentrate.
* Generate a bulk beneficiation concentrate (>5kg) for downstream test work.
* Conduct downstream spheroinisation and refinery test work, preferably using non-
hydrofluoric acid methods, to generate a final concentrate grade of >99.95% TGC.
* Conduct electrochemical test work to confirm the final refined concentrate is suitable as BAM.
* Conduct further work required to generate information for a study (scoping or pre- feasibility) followed by engaging suitable service providers to generate the study.
“This is a great opportunity to pivot the focus of this project as OAR pursues its strategy of becoming a battery minerals exploration and development company,” CEO, Paul Stephen, said.
“The company has already established that the oxidised soft graphitic clays within the existing Resource may be amenable to being cheaply and readily mined within a shallow open pit without drilling and blasting.
“We are excited to commence an additional infill and extension drill campaign with a view to developing a low-cost operation focused on the growing spherical graphite market.”
Oakdale Graphite Project Location
Located on the western side of the Eyre Peninsula in South Australia, the Oakdale Graphite Project is in proximity to several other well-known lithium projects held be ASX-listed companies.
For further information please visit: https://www.oarresources.com.au/
