iTech Minerals identifies quality graphite intersections at Lacroma

iTech Minerals (ASX: ITM) has added to its growing South Australian graphite position with promising new results from the maiden drill program at its Lacroma prospect.

The Lacroma graphite prospect is located approximately 20km from iTech’s proposed graphite processing plant for the Campoona Spherical Graphite Project.

Managing director, Mike Schwarz, said the extent of graphite mineralisation at Central Lacroma is taking shape, with significantly thick graphite mineralisation intersected in drilling from surface and in two traverses over one km apart.

“With a further four to five km of strike still to be tested in the current drill program, iTech hopes to establish a significant new graphite asset for the company,” he said.

Drill results

iTech has defined an extensive, shallow graphite horizon which extends ~200m across strike and approximately 150 m deep with the initial Lacroma drill results.

The company has identified that this same horizon occurs over one km to the south via geological logging of the second drill travers.

Notably, these results match iTech’s model of a six km airborne electromagnetic anomaly associated with a regionally extensive graphite horizon of scale.

The company is continuing to follow-up its model results with further drilling along traverse 2 which is testing the graphite mineralisation to the east.

This will be followed by a third drilling traverse to examine an  east-west section. This will be followed by a test of the southern extent of the prospect and eventually infill drilling.

Next batch of assays

The company is eagerly awaiting the arrival of the next batch of assay over the next few weeks. Those assays will provide results from the rest of the holes in traverse 1, while assay results from traverse 2, one km to the south, are expected in the next four weeks.

The company is also looking to fast-track metallurgical test work by collecting a representative sample from section 1.

Test work will involve optimisation of a high-grade concentrate flowsheet, spheronisation, and purification to produce an uncoated purified spherical graphite.

Strong graphite portfolio

iTech’s nearby Campoona Project has a JORC 2012 Global Mineral Resource of 8.55 million tonnes at an average grade of 9.0% Total Graphitic Carbon (TGC) across three project areas: Campoona, Campoona Central and Wilclo South.

The company has already been granted a mining lease to process Campoona graphite. It is currently working on a research project with ANZAPLAN in Germany to develop a new, more environmentally friendly, process for refining spherical graphite for the battery materials market.

Graphite demand

Graphite is the largest single component by weight in EV batteries. In lithium-ion batteries, graphite is considered to be an anode material that cannot be substituted as it helps improve electrical conductivity and acts as a host for lithium ions.

The global graphite market was valued at US$23.73 billion in 2022 and is expected to grow to US$37.68 billion by 2028. The market is then projected to expand at a CAGR of 8.01% over a forecast period of 2023-2028, according to ResearchAndMarkets.com

South Australia a leading graphite developer

South Australia is a significant player in the Australian graphite market.

Geoscience Australia says graphite deposits with reported Economic Demonstrated Resources (EDR) include Uley, Oakdale, Siviour, Kookaburra Gully and Campoona, all in South Australia; Mount Dromedary in Queensland; and Longtom, Munglinup, Wahoo and Emperor, all in Western Australia.