International Graphite continues run of drilling success at Springdale

International Graphite’s (ASX: IG6) aim of becoming Western Australia’s first vertically integrated producer of graphite battery anode materials (BAM) for lithium-ion (Li-ion) batteries has received another boost with more significant assay results from its Springdale graphite project.

The latest assays from a 74 RC drill hole program completed within the existing mineral resource continue to expand the known mineralisation at Springdale.

Assays for a dozen holes are still to be received from the approximately 273 drill holes completed during the 2022/2023 drilling campaign.

Managing director and chief executive officer, Andrew Worland, revealed that upon receipt of the final assay results, they will be included in an updated Springdale mineral resource estimate which is targeted for release in coming weeks.

“These drill holes provide additional data that will be used to upgrade confidence in the existing Springdale mineral resource estimate from inferred to indicated status,” he said.

“We have completed some 9,000 to 10,000 metres of infill drilling at the existing Springdale mineral resource over the past 12 months. This more than doubles the drill data base that supports the existing mineral resource estimate.”

The approximately 5,000 metres of drilling at the Springdale Central discovery and 3,200 metres of drilling at the Mason Bay discovery was undertaken to build on the resource inventory for the upcoming Springdale mineral resource estimate.

Metallurgical testing underway

In mid-July International Graphite revealed it commenced the next phase of metallurgical testing of ore samples from the Springdale graphite project.

More than 1.5 tonnes of material was accumulated for laboratory assessment at ALS Metallurgy’s pilot concentrate production facilities in Perth.

International Graphite director and chief technical Officer, David Pass, said the company was rapidly progressing technical assessment for its proposed open cut mine at Springdale, on Western Australia’s south coast, with a target for feasibility study completion by mid-2024.

“Results from the bulk testwork will add important data to our Springdale concentrator plant design,” Mr Pass said.

“Preliminary testing has already shown that the Springdale graphite is well suited for battery anode material (BAM). The concentrates produced at ALS will be available for further BAM testwork including at our own Collie BAM R&D facility.”

The bulk ore samples include material obtained from within the existing Springdale Mineral Resource and from recent graphite discoveries at Springdale Central and Masons Bay – two of four new graphite finds identified during an extensive reverse circulation drilling program the company has undertaken at Springdale in the past 12 months.

Government critical minerals grant in place

The significant potential of International Graphite’s project has been recorded by the awarding of a $4.7 million grant from the Australian Government Critical Minerals Development Program, with $1.9 million of that funding received in June.

Graphite is considered a critical mineral in many countries, particularly for its role in the growing new energy market.

The graphite market has historically been driven by industrial demand, but a strong increase and positive outlook for electric vehicle and battery demand have emerged as key growth drivers.

The global graphite market, valued at $35.3 billion in 2022, is expected to grow to $56.1 billion by 2028, projecting an expansion at a CAGR of 8.01% over the forecast period of 2023-2028.