Name of the Project
Siviour graphite project.

Location
Eyre Peninsula, South Australia.

Project Owner/s
Renascor Resources.

Project Description
A definitive feasibility study (DFS) has confirmed Siviour’s potential as a low-cost, long-life graphite project that can achieve consistently attractive profit margins, even in the current lower graphite-price environment.

The project has total mineral resources estimated at 87.4-million tonnes grading 7.5% total graphitic carbon (TGC) for contained graphite of 6.6-million tonnes.

Total mineral reserves are estimated at 45.2-million tonnes grading 7.9% TGC for contained graphite of 3.6-million tonnes.

The DFS considers the viability of producing flake graphite concentrates from the Siviour project through a proposed openpit mine with an adjacent graphite production plant.

The development plan for the DFS is based on a staged construction of two substantially identical processing plants, each with an ore throughput capacity of 825 000 t/y for a combined capacity of 1.65-million tonnes a year.

Production in years 1 to 4 is estimated at 80 000 t/y, increasing to 144 000 t/y in years 5 to 10.

Over the 40-year mine life, the Siviour project is expected to produce 105 000 t/y.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated after-tax net present value, at a 10% discount rate, of A$388-million and an internal rate of return of 33%, with a payback of 3.7 years.

Capital Expenditure
Capital expenditure for Phase 1 is estimated at A$114-million and for Phase 2 at A$77-million.

Planned Start/End Date
Not stated.

Latest Developments
Renascor Resources will raise A$15-million through a share placement to fund the technical, regulatory and marketing workstreams for its Siviour project ahead of a final investment decision (FID).

The company has received firm commitments for the placement of 187.5-million shares at 8c each from institutional investors in Australia and abroad.

The placement will be completed under the company’s existing placement capacity and will not require shareholder approval.

The capital raise will ensure that Renascor is sufficiently funded when a final investment decision is made, with the company now well placed to complete all the remaining development work necessary to reach the construction phase.

At the beginning of April 2021, Renascor said it would investigate a substantial increase to the Stage 1 production capacity at the Siviour project.

The decision to investigate an increase in the Stage 1 production, beyond the currently planned 28 000 t/y of purified spherical graphite, resulted from increased enquiries from major anode manufacturers.

The company is also determined to bring forward feasibility work for the Stage 2 expansion of the planned battery anode material operation.

“We are . . .  assessing the optimal scale of Stage 1 production capacity and bringing forward feasibility work for the Stage 2 expansion. Our objective is to leverage our world-class, world-scale Siviour graphite deposit to maximise value for our shareholders,” Renascor MD David Christensen said.

The company is also working with existing offtake partners to progress product validation testwork and conclude formal binding agreements, he has added.

Key Contracts, Suppliers and Consultants
Royal IHC and Wave International (study manager and supervising engineers); Optiro (mineral resource estimate); Goudie Hall Consulting (metallurgical testwork); Optima Consulting and Contracting (mining and mine design); Royal IHC and Wave International (mineral processing and plant engineering); AMC Consultants (mine); Wave International (plant and tailings); Groundwater Science (hydrogeology); Benchmark Mineral Intelligence (marketing); JBS&G Australia (environmental permitting); George Wilby (logistics); BurnVoirCorporateFinance (financial analysis).

Contact Details for Project Information
Renascor Resources, tel +61 8 8363 6989 or email info@renascor.com.au.