PERTH (miningweekly.com) – ASX-listed Renascor Resources has reported a 25% increase in the mineral resource estimate for its Siviour graphite project in South Australia.

Following recent resource expansion drilling, the Renascor mineral resource is now estimated at 123.6-million tonnes, at 6.9% total graphitic carbon for 8.5-million tonnes of contained graphite, with 61% of the resource classified as measured and indicated.

“The resource upgrade offers continued evidence of the world-class quality of the Siviour graphite deposit and demonstrates the viability of an abundance of near-surface, high-grade graphite in a single orebody,” said Renascor MD David Christensen.

“As the demand for graphite grows, long-life, high-quality sources of new supply like Siviour are becoming increasingly important to the developing lithium-ion battery supply chain. We expect the increase in the size of the Siviour resource will not only assist with future capacity extensions beyond those being considered in the recently completed battery anode material (BAM) study, but will also further establish Siviour as amongst the most significant new sources of graphite globally.”

Renascor intends to integrate the Siviour graphite mine and concentrator operation with a BAM project, using concentrates from the Siviour mining operation to produce purified spherical graphite for use in lithium-ion battery anodes.

An August study into the BAM project estimated an initial capital requirement of A$214.5-million for the Stage 1 development of 825 000 t/y of mining capacity to produce 75 000 t/y of graphite concentrate. A further A$394.5-million capital investment would be required to fund the Stage 1 spherical graphite facility, which would have a 50 000 t/y capacity.

The Stage 2 project, to increase annual graphite concentrate production to 150 000 t/y will require a capital investment of A$173-million, and to boost the spherical graphite production capacity to 100 000 t/y it will require a further A$377-million.