Kingsland Minerals achieves breakthrough graphite quality in testing at Leliyn project

Kingsland Minerals (ASX: KNG) has achieved a commercial grade of +94% total graphitic carbon from initial metallurgical testing of concentrate from the Leliyn project in the Northern Territory.

Testing was conducted on a master composite sample selected from diamond drill holes to represent potential open-pit mining material.

The company said it would be working on optimising flotation parameters to improve this figure while maintaining a saleable grade.

Testing is also underway to assess the production of spherical graphite from Leliyn as a precursor to using it for battery anode materials in the production of electric vehicles.

PFS planned

Kingsland managing director Richard Maddocks said the company had achieved a “significant de-risking milestone” ahead of a project feasibility study.

“Given these strong results, we will now focus on producing a cost-efficient fine flake concentrate and transporting this to Darwin by road or rail and also on securing markets for processed and raw fine flake graphite products alongside a new downstream processing facility,” he said.

“Leliyn is Australia’s largest graphite deposit and it is well placed to play an important role in the supply of raw and processed graphite products.”

Initial discussions have commenced with strategic partners and end-users to assess downstream processing and off-take options.

Export controls

The positive test results mean Leliyn is well-positioned to meet US and European demand for graphite from non-Chinese sources.

In October, the world’s leading graphite producer and exporter introduced new rules requiring domestic companies to apply for permits before being able to ship critical minerals to international markets.

The nine items covered by the new restrictions include three types of high-purity, high-strength and high-density artificial graphite and its products, as well as six types of natural flake graphite and related products.

The controls are believed to represent China’s bid to secure its position at the top of the graphite mining and production hierarchy.

Graphite-rich structure

Maiden drilling at Leliyn last year revealed a graphite-rich structure starting close to the surface with a true width of at least 100 metres.

It has since proven to be the country’s biggest graphite deposit, with an inferred mineral resource estimate of 194.6 million tonnes grading 7.3% for 14.2Mt contained graphite.

Kingsland is expecting to release an updated exploration target outside of the current inferred resource later this month.

Preliminary technical studies will also be conducted to evaluate base case production and economic metrics.