iTech Minerals grows graphite resource to 35.2 Mt at 6.0% Total Graphitic Carbon
300% increase thanks to drilling at low-cost Lacroma prospect
Plans is to process graphite into battery anode material for lithium-ion market
Special Report: iTech Minerals has expanded the global Mineral Resource Estimate (MRE) for its Eyre Peninsula graphite project in South Australia by a whopping 300% for a total measured, indicated and inferred mineral resource of 35.2 Mt at 6.0% Total Graphitic Carbon (TGC).
That’s up from the previous MRE of 8.55 Mt at 9.0% TGC, at a 5% TGC cut-off grade.
The measured and indicated MRE has now increased to 22.9 Mt at 5.3% TGC, at a minimum cut-off of 2% TGC, with approximately 65% of the MRE in the higher confidence measured and indicated categories.
The MRE increase is thanks to around 12 months of reverse circulation and diamond drilling focussed on the Lacroma graphite deposit which sits a short 20km from iTech Minerals’ (ASX:ITM) proposed graphite processing plant.
The Lacroma prospect features the right mix of metallurgical properties and geology which are favourable for ITM’s plan of low-risk processing into battery anode material for the lithium-ion market.
Low cost is the key
iTech believes it is crucial in a time of volatile graphite pricing to develop a project that has potentially low capital costs, potentially low operational costs and low technical risk.
“A 300% increase of the global graphite mineral resource estimate at our Eyre Peninsula graphite project is a massive achievement for iTech after just 12 months of exploration and resource drilling,” managing director Mike Schwarz said.
“Importantly, the simple geology and metallurgy of the Lacroma deposit gives it all the hallmarks of a low risk and potentially low-cost mining operation which will no doubt prove especially important in a global market that has shown volatile graphite pricing.
“With the definition of a significant resource, we have the confidence to move forward to the next phase of developing this exciting project and look forward to helping the world meet the graphite shortages that many analysts are predicting over the next decade.”
Sugarloaf prospect the target
Drilling was also undertaken at the nearby Sugarloaf graphite prospect, which has an exploration target range of 158 to 264 Mt at 7 to 12 % TGC.
The drilling extended the known strike length of the graphite mineralisation from 2 km to 4.3 km.
It was determined that Sugarloaf is a very fine-grained graphite deposit that doesn’t conform to the normal metallurgical techniques to produce a 94% TGC concentrate and iTech is currently undertaking an extensive metallurgical test work program to determine if an economic beneficiation circuit can be developed for Sugarloaf.
If successful, the company, has the potential to develop significant additional resources at the Sugarloaf prospect.
Looking ahead to offtakers
In the meantime, metallurgical test work is continuing on samples from Lacroma which to date appears to have simple metallurgy with exceptionally high recoveries of 95% recoveries of 94% TGC concentrate.
The company has commissioned a consultant to cost a graphite concentrate pilot plant based on the results of the Campoona and Lacroma metallurgical test work.
This will allow iTech to produce enough sample for qualification testing by potential offtake partners.
This article was developed in collaboration with iTech Minerals, 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.
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