International Graphite progresses Springdale project towards final investment decision
International Graphite (ASX: IG6) has continued to advance its Springdale project in Western Australia to become the state’s first vertically-integrated producer of graphite products for the global battery market.
The company is currently conducting a 10-hole diamond program that is expected to provide critical data for mine design, waste characterisation and resource classification.
It will also offer additional sample material for metallurgical test work to inform process design criteria for the concentrator.
Critical steps
The company mobilised drilling rigs to the project in May to commence onsite feasibility study activities.
Work focused on the critical steps needed to support a final investment decision for the planned graphite mine and concentrator.
This included geotechnical drilling to inform mine planning and permitting and to provide metallurgical data for concentrator plant process design.
Battery anode processing test work on Springdale concentrates continued at specialised overseas facilities during the quarter.
The programs include electrochemical analysis, micronising and spheroidisation optimisation, leach purification option evaluations and the production of purified and unpurified spherical graphite samples for third-party evaluation and coating options.
Flora and fauna surveys
In the three months to the end of June, International Graphite completed flora and fauna surveys at Springdale and received final reports providing a baseline for assessing priority ecological communities across the tenement area.
The surveys confirmed that the mine would have little impact on natural vegetation or wildlife as the project area is already cleared for agriculture.
Additional studies are underway to support environmental approvals and permitting, including hydrological and tailings storage assessments and a drone survey was also completed to provide data for a digital elevation model of the project area to support site design and model water flows.
Consultation with technical specialists has commenced to progress mine design, geochemistry and material classification.
Government grant
International Graphite was awarded a $6.5 million state government grant in April to help advance the development of graphite micronising operations at Collie.
The money will also support feasibility studies, including test work for processing graphite concentrate feed from Springdale.
The award brings the company’s total funding from the state’s Collie Just Transition program to $8.5m and total Australian government funding to $13.2m.
Equity Raising
International Graphite completed a $3 million equity raising with sophisticated and professional investors in April at an issue price of $0.125 per share, with a further $400,000 raised from existing shareholders through a share purchase plan at the same share price.
It was the company’s first equity market financing since its initial public offering in April 2022.
International Graphite is also pursuing potential funding alternatives in North America, participating in an Australian trade mission to Washington DC and meeting with US government agencies during the quarter.