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Miramar Resources chasing million-ounce potential on multiple fronts

Special Report: Miramar Resources executive chairman Allan Kelly knows a thing or two about building a gold mining business from … Read More
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Miramar Resources executive chairman Allan Kelly knows a thing or two about building a gold mining business from nothing.

The respected geologist is best known for taking Doray Minerals from a $4.6 million IPO that barely crossed the line in 2010 to a gold producer within three years, with a market cap worth hundreds of millions of bucks on the back of its Andy Well discovery near Meekatharra in WA.

Kelly views newly listed Miramar (ASX:M2R), which comfortably raised $8 million to list on the ASX last year, as a better bet than Doray was when it first floated.

That belief is backed by the high-quality and relatively advanced Gidji and Glandore projects Miramar counts as its flagship assets.

“I reckon these projects are better than Doray’s,” Kelly told Stockhead.

“Andy Well’s a special case. I had worked on Andy Well, back in the 90s with Western Mining.

“Western Mining was going through a funny period, where the target size increased and increased and increased, that it was just unrealistic.

“I went back there with a bit of a different idea, followed that up, and we turned it into a discovery.

“But everything else pretty much in that Doray IPO was really early stage. So we certainly didn’t have anything like Gidji or Glandore in the Doray float.”

Prime real estate

While Andy Well exceeded expectations for Doray to deliver over 1Moz at 15g/t, Kelly says Miramar has not one but two projects with the potential to host 1-2Moz or more.

Both the Gidji and Glandore gold projects were picked up last year in a one-two punch when Kelly only thought one would come to fruition.

Like a football coach with superstars to stock the bench, it is undoubtedly a good problem to have.

In acquiring an 80 per cent stake in Gidji from former Doray geologist Toby Wellman, Miramar managed to lock up premium real estate just 14km north of Kalgoorlie-Boulder adjacent to Kalgoorlie Consolidated Gold Mines’ Gidji Roaster.

Now home to one of the world’s largest ultra-fine grinding mills, KCGM also hosts the little known 314,000oz Runway resource abutting the tenement boundary, while Zijin’s 10Moz Paddington gold camp is visible on the horizon.

Even more exciting to Kelly and Miramar is the presence of the Boorara Shear Zone running through the ground.

“To use a real estate analogy, it’s like the cheapest house on the best street sort of thing,” Kelly said.

“It’s under-explored, but it’s got the same geology, it’s on the structure, you can see the Gidji Roaster here, and you can see Paddington just up the road.

“So we’re just going to get to work and it’s great for a company like us.”

Gidji is just 15km from the Super Pit. Pic: Miramar Resources

Drilling success lights up Gidji targets

Aircore and RC drilling are some of the most effective tools of the patient gold explorer, and Miramar has conducted three rounds of drilling at Gidji since listing last year.

One of the big success stories has been the identification of the Marylebone target, which has grown to 2km in length, remains open along strike and untested at depth.

“The first round of drilling, we basically did pretty wide space drilling up and down a north south structure, which pretty much ran from Runway up to the Boorara Shear Zone,” Kelly said.

“When it hit the Boorara Shear Zone we got two meters at seven grams, including 1m at 13g/t. So almost half an ounce in a first drilling program, that’s pretty exciting.

“Then we followed that up with a second round of aircore and that grew that target, and we’re getting another 2, 3, 4 or 5g hits.

“And then we just did a third program in May- June, we put those results out two weeks ago.

“Now that Marylebone footprint is at least two kilometres at sort-of +1g/t in aircore, which is pretty good. But it’s still open to the northwest and the southeast.

“And it hasn’t been tested at depth yet. All our drilling has been 50-60m deep aircore.”

Paddington comparisons

Those results revealed visible gold in quartz veining, pointing to significant structural similarities between Marylebone and the Paddington deposit just a few klicks up the Goldfields Highway.

At Paddington you have the Boorara Shear Zone, it does a little bit of a flexure, a jog and it’s got some north-south structures running through it,” Kelly explained. “And the base of the mineralisation is either side of the north-south structure.

“We see exactly the same thing at Marylebone, we’ve got this dilational jog in the Boorara Shear crosscut by north-south structures.

“The Paddington 1 and 2 pit, which produced about 4 million ounces, is about 1.5km long. We’ve got about 2km of supergene gold footprint now. So it’s very similar, but without any deep drilling.

“We’re excited about the potential to find something that could be a 1 or, 2 million ounce deposit like a Paddington.”

There are a number of other high priority targets across the Gidji JV including the Piccadilly and Railway prospects, while Kelly notes half the tenure there – including some of its most prospective geology – has not even been granted yet.

Glandore a high-grade hotspot

Glandore is located on a salt lake 40km east of Kalgoorlie, and was the domain of South African giant AngloGold Ashanti until it was vested into the Miramar float.

Because of its tough terrain and complicated ownership history the project remains underexplored, despite a diamond drill hit of 8m at 22.5g/t from one time Jubilee gold mine operator Harmony Gold.

Like Gidji, it is located in prime real estate, nestled between Silver Lake Resources’ Mt Monger gold project, Gold Fields’ St Ives gold mine and Horizon Minerals’ Boorara project, and not far from Bulong where Black Cat Syndicate is planning to build a new processing plant.

Kelly said the project bears geological comparison also to Gold Fields’ Granny Smith gold mine, home of the 12Moz Wallaby deposit.

“I guess the structural setting is very similar to something like Granny Smith, where the greenstone comes and wraps around the granite and you get a bit of a dilation zone, or a pressure shadow next to the granite,” Kelly said.

“And that’s what Glandore looks like.

“So a couple of companies have done aircore drilling, and they got some really nice results, you know 3-4g hits.

“Harmony drilled a couple of diamond holes back in 2005 and they got results up to eight metres at 22g.

“So fantastic result in a diamond hole, very shallow, only about 90m down the hole. So 80m vertically, and then after that pretty much nothing happened.”

With the advent of lake drilling technology, exploring projects like Glandore has become easier for juniors.

Miramar
Drilling at the Glandore project. Pic: Miramar Resources

Uncharted ground open to the west

There are two anomalies at Glandore: the East Target with 2.5km of near surface gold mineralisation and a host of drill hits of over 1g/t that remains open for 800m to the south, and the West Target which holds 2km of untested potential strike.

“We’ve just finished our first little aircore program on the land just to the south of the lake,” Kelly said.

“And we’re scheduled to be out there next month with a lake rig, the special lake rig drilling on the surface.

“On the western side of the granite you’ve got a mirror image, but basically no drilling.

“So we want to get that Western Target up to a similar level of detail as the Eastern Target before we go out and do diamond drilling.

“So it will be pretty busy out there this year as well. The scale of that opportunity is probably similar to Marylebone.”

Kelly said with the grades seen in historic drilling at Glandore, it too has the characteristics for million-ounce potential.

“Gidji is in a better location, but Glandore’s got better results. We’re excited about both of them.”

More where that came from

Miramar has not rested on its laurels by stopping at its flagship projects, with a host of other early stage assets waiting in the wings.

One is the Randalls project further east of Glandore, which sits adjacent to Silver Lake Resources’ 70,000ozpa Mt Belches Mining Centre.

Another is the Lang Well project, an underexplored greenstone belt between the Deflector, which Kelly purchased and built with Doray, Golden Grove and Rothsay mines, where aircore drilling is planned for the second half of the year.

Miramar has also completed geochem sampling on Whaleshark, a large folded banded ironstone formation target hidden under 100m of Carnarvon Basin sediments near Onslow in the Pilbara.

“When I worked out there with Western Mining Corporation, we drilled a couple of diamond holes into it and got some gold and that’s never been followed up,” Kelly said.

“So that’s got potential for gold mineralisation, it’s got potential for IOCG. It’s also a similar setting to something like Havieron.”

Bangemall

Another interesting conceptual project is the Bangemall project in the Gascoyne region of WA.

It was identified for its prospectivity for nickel-copper-PGE mineralisation in the same Geoscience Australia map that contained early inspiration for the Julimar discovery, which has turned Chalice Mining into a $2.5 billion company.

“I had a bit of an idea of that when I was working for Avoca and got Western Mining into a JV but then it never really progressed anywhere,” Kelly said.

“But when Chalice made the discovery of Julimar back in 2019, they talked about this Atlas that Geoscience Australia put together.

“And so obviously the South West is the area that’s lit up now and you’ve got Chalice and Caspin and all those companies working down there.

“But the Bangemall area lit up as well.

“We’ve got six applications in the Bangemall and one of those has been granted. And we’re preparing to do an EM survey over that later this year.”

Minamar
The Bangemall Project in the Gascoyne. Pic: Miramar Resources

Corporate DNA

Kelly is not the only high-flyer on the Miramar team, with technical director Marion Bush, the former CEO of TSX-V listed African gold company Cassidy Gold, also well respected in exploration, mining and analyst circles.

Business executive and former Army and naval officer Terry Gadenne is a non-executive director.

Outside the key board appointments it is a lean crew, something Kelly says is helping Miramar ensure it spends as much money on the ground as possible, with 70-75% of funds heading into exploration.

“About three quarters, 70-75% of your fundraising is what you should be spending,” Kelly said.

“If an exploration company is not getting out there drilling holes, and putting information out there in a quarterly report, then they’re not advancing the projects, and it’s just wasting time.

“So we want to spend money on the ground, not on lots of salaries and things like that.

“You’ve got to buy tickets in the lottery, you know.”

After shooting up on listing last year, Kelly said Miramar is working methodically to prove up its assets.

“We set ourselves such a high hurdle on the first day,” he said. Our share price started trading at 53c and hit 59c on the first day. To say it was a bit overwhelming would be appropriate.

“We’re out there, we’re doing the work. We’re putting out lots of news from our projects we’re really excited that every time we drill it seems to grow and get better.”

 


 

 

This article was developed in collaboration with Miramar Resources, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Miramar Resources chasing million-ounce potential on multiple fronts appeared first on Stockhead.

Base Metals

This ASX-listed iron ore developer is well placed to benefit from the shift to high grade ore

Special Report: All eyes have been on the price of iron ore in recent days as volatility in the iron … Read More
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All eyes have been on the price of iron ore in recent days as volatility in the iron ore price has had a big impact on markets.

But while that is where the focus is in the here and now, there remains a story bubbling under the surface about where iron ore is headed in the future.

Increasingly, iron ore experts believe grade will be an important factor for steel mills, as efforts to curb emissions and pollution from steelmaking take centre stage.

Take this comment for instance from Fastmarkets index manager Peter Hannah, who observes iron ore markets for one of the two major price-reporting agencies.

“To succeed in decarbonizing the global steelmaking industry there needs to be a greater recognition of how much the iron ore supply base needs to change,” he wrote recently.

“Vast volumes of existing production will need to be replaced by higher-grade supply, first to meaningfully reduce CO2 emissions from the prevailing BF/BOF (blast furnace) technology, and later to meet the demands of a DRI (direct reduced iron) sector at least an order of magnitude larger than it is today.”

The gap for discounts and premiums in iron ore have soared in recent years. Pic: Supplied

 

As Magnetite Mines (ASX:MGT) showed in a presentation released on Friday, it is one of a handful of iron ore hopefuls able to capitalise on this growing thematic.

Its Razorback mine in South Australia is now in the Definitive Feasibility Study stage leading to decision to mine, planning to start operations around the end of 2024. It would produce a 68% iron magnetite concentrate.

That is well above any commonly quoted indices like the 65% Brazilian index, which already generates an substantial premium compared to the commonly quoted benchmark 62% fines price.

While the 62% iron ore index – used by most of the Pilbara iron ore miners such as BHP –  was fetching US$108.67/t on Friday morning, 65% iron ore demanded US$134.60/t.

In the long run over the past decade the gap between discounted 58% iron ore, 62% product and premium product has trended wider and wider.

“Steelmakers need to adopt best practices that prioritise decarbonisation with existing assets. Some of these best practices include installation of energy efficient technology, optimisation of the blast furnace (BF) burden (e.g. with high- grade ore),” CRU Group says.

 

Razorback a logistical dream

While grade is one aspect of Razorback’s allure, it is not the only reason Magnetite Mines has been so keen to push ahead with a definitive feasibility study after releasing a successful PFS in July.

The mine, which has a resource of 4.2Bt of iron ore, stands to be a logistical dream. Located just 240km northeast of Adelaide, it has access to rail and high voltage powerlines that connect it to the Australian electricity grid.

That is significant from an ESG perspective as well because of South Australia’s high penetration of wind power and other renewables, which met around 60% of the State’s electricity needs last year.

Being in the vicinity of the town of Yunta, Razorback will have a 50km purpose built private all weather haul road and rail siding with access to an existing heavy freight network and iron ore port at Whyalla.

From a mining perspective it is also technically simple. Ore can be mined from surface, saving costs on pre-stripping with a low PFS strip ratio of 0.16:1 and the potential to improve grades with selective mining and or ore sorting.

Razorback is close to key infrastructure like power, rail and ports. Pic: Magnetite Mines

 

Low cash costs underpin long-life operation

Once built, the project is highly competitive.  As reported in Magnetite’s pre-feasibility study in July, the project is expected to generate cash when the 62% iron ore price is above  US$54/t (including the appropriate quality adjustment).  That would still be half the iron ore price on Friday, after the contraction seen in the benchmark 62% fines price in recent weeks.

At US$110/t, around the long-term average iron ore price over the past 10 years, Razorback would carry a post-tax NPV of $700 million and IRR of 20%, generating around $144 million a year in net cash flow after taxes and royalties.

At a production rate of 2.7Mtpa, the project would pay back its estimated $675m capex in 4.6 years, leaving two decades of reserves still to go.

If we were to see another bull run to US$150/t – and remember, at a 68% grade, Razorback’s concentrate would earn a premium on that – that would increase to an NPV of $1.67 billion, with an IRR of 33% and average net cashflow of $241m, something that would see Magnetite pay back its initial investment in just over 2 years.

Key results from the Razorback PFS. Pic: Magnetite Mines

 

DFS activities under way with appointment

Magnetite Mines this week appointed engineering and professional services company GHD to deliver its critical power supply and non-process infrastructure elements of the Razorback DFS, effectively kickstarting the process.

It will build on the power supply option selected from the DFS of installing a 132KV transmission line connecting to the national grid at Robertstown.

“GHD’s appointment is an important milestone for Magnetite Mines as it represents the commencement of the DFS and continues our commitment to delivering a well planned and high quality study for our shareholders,” Magnetite Mines executive chairman Peter Schubert said last week.

The DFS well underway and currently expected to be completed next year, with a decision to mine looking to be at the end of next year.  Project financing and permitting will take place in parallel.  The current schedule sees Razorback in production around the end of 2024, well placed to benefit from a stronger ESG focus in the mining and steel industries.

On the approval side of the ledger, work is well underway. South Australia is a predictable, stable and low risk mining jurisdiction and there is regular consultation between Magnetite and the State Government.

Baseline environmental studies are also well progressed, while the important consultation process with the people of the Ngadjuri Nation, the region’s traditional owners has started, reflecting the company’s acknowledgement of and respect for the traditional owners of the country.

Magnetite Mines is on track with its proposed development timeline. Pic: Magnetite Mines

 

Braemar district fertile for further development

While Magnetite has unlocked an impressive 5.7bt of resources across its Razorback (4.2Bt) and Muster Dam (1.5Bt) projects, that does not tell the full story of just how fertile the Braemar region is for iron ore discoveries and developments.

Of that bounty just 473Mt is included in the Razorback PFS reserve.

That factors in just 8% of Magnetite’s resource, 4% of the Braemar region’s kilometres long strike length and 0.3% of Magnetite’s tenured area.

That suggests Magnetite should have room to grow and expand beyond its initial 25-year project should the numbers stack up.

Its long life and plentiful resource and reserve base should be attractive to lenders, with Magnetite targeting early engagement to allow a collaborative approach to risk mitigation and achieve financial close by the fourth quarter of 2022.

Debt funding is likely to be complemented by a conventional equity raising or other options for equity funding.

Magnetite has $15.3m in the bank to progress its all important DFS, and a market cap of $69m as of September 21.

MGT stock is around 170% up over the past 12 months despite a dip after PFS release, but it has caught some tailwinds in recent days as investors responded well to news about its DFS preparations, rising by almost 29% from 2.1c a share to 2.7c a share over its past three trading days.

This article was developed in collaboration with Magnetite Mines, a Stockhead advertiser at the time of publishing.

 This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post This ASX-listed iron ore developer is well placed to benefit from the shift to high grade ore appeared first on Stockhead.

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Articles

ASX Small Cap Lunch Wrap: Who’s outperforming Warren Buffett today?

A hamster in the US has a portfolio up by around 20% since June, outpacing the S&P500 and Warren Buffett’s … Read More
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Ever wished you were as rich as Warren Buffett?

Or perhaps more accurately; sometimes feel like you’re just a hamster running on a wheel?

Some enterprising crypto investors have made that idea work for them, with a unique hamster-based investment strategy.

According to reports, the hamster — Mr Goxx — dutifully runs on his wheel and in doing so, also selects from a range of different cryptocurrencies.

The wheel is uniquely designed for Mr Goxx to choose one of two tunnels, which indicate buy or sell.

And apparently his portfolio is up by around 20% since June, outpacing the S&P500 and Warren Buffett’s Berkshire Hathaway.

So if your fundamental analysis of ASX small caps isn’t bringing returns, there are options…

Elsewhere, the idyllic, resource-rich locale of Perth, Western Australia, has been run over by some rampant demons following Melbourne’s AFL Grand Final victory on Saturday night.

208cm ruckman Max Gawn stayed in game-shape following the financial siren, taking hangers while still dressed in his match guernsey:

On markets, ASX futures markets suggested the local index was going to edge higher (maybe) before the opening bell, but local stocks have beaten expectations as upbeat sentiment permeates through Monday trade.

Just after 12pm EST the ASX 200 was on track for a gain of around 1%, with steady demand across all the major sectors.

Energy stocks kept the ball rolling after last week’s big rally, and the ASX 200 Energy index has now climbed by an impressive 10.6% since last Monday’s selloff.

Brent crude oil is trading at three-year highs above US$78 a barrel, as consensus around a global energy supply crunch continues to build.

Along with the ASX, positive sentiment extended across Asian markets with steady gains across the other major indexes including the Hang Seng (home of Evergrande) which rose by more than 1%.
 

ASX SMALL CAP WINNERS

Here are the best performing ASX small cap stocks for Monday September 27 [intraday]:

Stocks highlighted in yellow made market-moving announcements.

Code Name Price % Change Volume Market Cap
NTL New Talisman Gold 0.002 100.0% 1,184,051 $2,792,225
ANL Amani Gold Ltd 0.0015 50.0% 3,911,521 $14,205,197
RRR Revolverresources 0.43 38.7% 2,941,576 $25,380,460
RBX Resource B 0.28 36.6% 5,717,568 $6,959,255
DDD 3D Resources Limited 0.004 33.3% 125,305 $11,641,116
OAK Oakridge 0.002 33.3% 1,080,116 $5,158,939
ARR American Rare Earths 0.22 22.2% 4,175,115 $62,065,499
ARU Arafura Resource Ltd 0.235 20.5% 21,478,573 $302,239,730
AO1 Assetowl Limited 0.006 20.0% 155,000 $4,081,026
RBR RBR Group Ltd 0.006 20.0% 1,030,125 $6,409,900
AJL AJ Lucas Group 0.038 18.8% 966,220 $38,281,172
POW Protean Energy Ltd 0.013 18.2% 1,476,795 $7,156,743
IMC Immuron Limited 0.165 17.9% 937,744 $31,814,523
IXC Invex Therapeutics 0.8 17.6% 237,582 $51,104,617
LEL Lithenergy 0.695 16.8% 3,327,351 $26,775,000
GGX Gas2Grid Limited 0.0035 16.7% 2,054,000 $12,138,306
PEB Pacific Edge 1.52 16.0% 139,756 $955,265,080
POL Polymetals Resources 0.145 16.0% 31,562 $4,852,907
TBA Tombola Gold Ltd 0.044 15.8% 1,546,928 $24,103,240
OZM Ozaurum Resources 0.15 15.4% 292,127 $7,438,080
HWK Hawkstone Mng Ltd 0.046 15.0% 22,265,624 $68,793,777
BMR Ballymore Resources 0.25 14.0% 20,000 $15,725,178
AVL Aust Vanadium Ltd 0.025 14.0% 5,913,983 $72,178,161

 

Recent ASX debutante Resource Base (ASX:RBX) is getting into the rare earths game, where a number of other ASX juniors are running hot.

The company announced that its snapped up 1,380sqkm of ground in the Murray Basin, which is prospective for ionic clay hosted Rare Earth Elements (REE).

Elsewhere among stocks with news, biopharmaceutical company Invex Therapeutics (ASX:IXC) jumped by around 20% after announcing a long-term Collaboration and Manufacturing Agreement with Peptron Inc — a company listed on the Korean Stock Exchange.

The deal will see Peptron use Presendin — IXC’s treatment for neurological conditions relating to raised intracranial pressure — in clinical trials and for commercial use, once Presendin is approved.

The agreement is “exclusive, applies globally and provides a defined price per dose for the supply of Presendin for clinical studies, and for the first ten years following the first commercial sale,” IXC said.

Get the wrap of the rest of today’s resources winners here.
 

ASX SMALL CAP LOSERS

Here are the best performing ASX small cap stocks for Monday September 27 [intraday]:

Stocks highlighted in yellow made market-moving announcements.

Code Name Price % Change Volume Market Cap
AJY Asaplus Resources 0.04 -33.3% 20,000 $8,160,000
ACB A-Cap Energy Ltd 0.085 -26.1% 2,448,518 $100,266,760
NPM Newpeak Metals 0.0015 -25.0% 992,527 $13,654,870
BDC Bardoc Gold Ltd 0.045 -21.1% 28,783,076 $98,909,670
EN1 Engage:Bdr Limited 0.004 -20.0% 1,999,249 $12,764,763
YPB YPB Group Ltd 0.002 -20.0% 100,000 $12,479,551
AEE Aura Energy 0.21 -17.6% 2,317,954 $101,784,941
SCN Scorpion Minerals 0.052 -14.8% 108,000 $15,800,903
CUL Cullen Resources 0.018 -14.3% 1,368,921 $7,852,271
EVE EVE Investments Ltd 0.0035 -12.5% 2,082,615 $15,372,568
TOE Toro Energy Limited 0.029 -12.1% 37,032,041 $128,612,292
OZZ OZZ Resources 0.19 -11.6% 212,469 $5,795,674
WFL Wellfully Limited 0.155 -11.4% 915,577 $36,718,582
VMY Vimy Resources Ltd 0.1775 -11.3% 4,532,779 $210,299,732
EL8 Elevate Uranium Ltd 0.56 -11.1% 777,573 $143,780,897
RD1 Registry Direct 0.033 -10.8% 184,545 $13,037,813
AGE Alligator Energy 0.068 -10.5% 42,201,863 $212,357,592
LME Limeade Inc. 0.71 -10.1% 17,193 $197,294,227
AGR Aguia Res Ltd 0.046 -9.8% 98,089 $17,031,064
PEN Peninsula Energy Ltd 0.23 -10.0% 6,774,820 $253,984,637
BBX BBX Minerals Ltd 0.19 -10.0% 365,091 $96,184,510
AMO Ambertech Limited 0.29 -9.0% 208,389 $24,622,932
COD Coda Minerals Ltd 0.79 -9.0% 69,456 $79,566,922

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Energy & Critical Metals

LEL reckons its Burke graphite deposit suited for lithium battery applications

Special Report: Lithium Energy’s teamed up with CSIRO for optimisation testwork for its Burke graphite project in Queensland. … Read More
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Lithium Energy’s teamed up with CSIRO for optimisation testwork for its Burke graphite project in Queensland.

The research agreement with CSIRO covers further testwork, including attempting spheronisation and purification of the natural graphite particles.

Essentially, the graphite is shaped into ‘potato-like’ structures with the objective of easier processing of Burke natural graphite flakes into electrode materials to reduce capacity losses and enhance cell efficiency.

The idea is to demonstrate to potential graphite purchasers the benefits of the natural flake graphite within the deposit.

The project will be 50% funded by the CSIRO Kick-Start Program and is expected to take four months to complete.

Lithium Energy (ASX:LEL) is confident the deposit presents an opportunity to cater to the growth in demand for graphite in lithium-ion batteries.

Encouraging electrical storage capacity

Burke has a JORC inferred mineral resource of 6.3 million tonnes at 16.0% Total Graphitic Carbon (TGC) for 1,000,000 tonnes of contained graphite – including a high-grade component of 2.3 million tonnes at 20.6% TGC.

Its high grade and low impurities make it particularly attractive for use in lithium-ion batteries.

In previous test work, Burke graphite cells had generally higher levels of capacity compared with control coin cells when repeatedly (50 times) charged and discharged over a 10-hour cycle time.

The company considered this electrical storage capacity highly encouraging and it was the driving force to undertake the further testwork required by battery manufacturers looking to acquire graphite for use in their battery manufacturing operations.

Pic: Total Graphite Content (TGC) comparison of ASX listed company graphite projects

Potential offtake partners

The company is planning to re-engage with Chinese and Japanese parties who have previously expressed a strong interest in the graphite from the Burke Project.

Lithium Energy said that companies in China are increasingly looking outside of the country for stable supplies of high-quality graphite concentrate – due to increasing environmental concerns as well as grades being typically lower in the country.

Once the latest round of testwork is complete, the company will pursue discussions with the aim of forming binding commercial off-take and development agreements.

 


 

 

This article was developed in collaboration with Lithium Energy Limited, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

 

The post LEL reckons its Burke graphite deposit suited for lithium battery applications appeared first on Stockhead.

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