PERTH (miningweekly.com) – The South Australian government has granted ASX-listed Renascor Resources approval for a 60 t bulk sample from its Siviour graphite project.
Ore extracted from the bulk sample will be used in the pilot plant production trial, which is taking place in China, and will provide marketing samples to permit potential end-users and strategic partners, Renascor MD David Christensen said.
“Since the completion of the Siviour definitive feasibility study (DFS) last moth, we have received positive feedback from potential offtake and strategic partners who are seeking a secure, long-term supply of graphite to cover projected shortages in graphite supply as lithium-ion battery anode demand from graphite continues to grow,” Christensen said.
He noted that with the approval granted, Renascor would now be able to supplement previously provided samples of Siviour graphite as the company sought binding offtake agreements to allow financing for the construction of the mine and processing plant.
The DFS estimated that the project would require a capital investment of A$118-million based on a staged development, with an initial production of 80 000 t/y during the first four years of operation.
The project would be expanded to 144 000 t/y from year five onward, with the A$77-million expansion to be funded from project cash flows.
Over the 40-year mine life, the Siviour project is expected to produce 105 000 t/y, generating average earnings before interest, taxes, depreciation and amortization of A$83-million.