Hexagon's PFS Confirms Viability of McIntosh Flake Graphite Project

The Board of Hexagon Resources (ASX: HXG) is delighted to report on the key outcomes of the Company’s Pre-Feasibility Study (PFS) into the development of the first stage of its 100% owned McIntosh Flake Graphite Project, located in Western Australia. The outcomes confirm the technical and financial viability of the initial project development and provide a very strong rationale to advance the project through a Feasibility Study (FS) towards development.
The PFS outcomes are based on a mining and ore processing rate of 2.4Mtpa, at an average diluted grade of 4.3% total graphitic carbon (TGC), to produce approximately 88,000 tonnes per year of highgrade, 98% TGC flake graphite concentrate. The Company’s marketing strategy is to produce highgrade and premium quality flake concentrate.
Hexagon’s Managing Director Mike Rosenstreich said:

“We are very pleased with the PFS outcomes, which are a significant step on the path to commercialisation of McIntosh. They indicate the viability of the project even on these initial or stage 1 parameters and give us some considerable certainty of a sensible base case and substantial upside as we move towards development.
We are taking a more assertive marketing approach than many of our peers in terms of impacting the graphite market. We consider that the demand side for graphite, especially natural graphite, is significantly underestimated in current forecasts. A key market factor is the opportunity to displace more expensive synthetic graphite from the battery sector with consistent high quality natural flake product.”

The FS process will include several new study packages such as ore sorting, and changes to the process flow sheet to preserve flake size as well as work to increase the resource base.
Click here to read the full text release.