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Metals Australia Ltd (“Metals Australia”, or “the Company”) continues to advance its flagship high- grade flake-graphite development project in the Tier 1 mining district of Quebec, Canada.
- Project Name change to Lac Carheil Graphite project: Metals Australia is changing the name of its graphite project to Lac Carheil Graphite Project to better align the projects proximity with its closest and most significant geographical feature (Figure 1). The existing project Mineral Resource1 is located on the Carheil Trend, east of Hydro Quebec’s high voltage powerline corridor (315 kV) which bisects the claims owned by the Company. The current resource is a considerable distance from Lac Rainy and much closer to Lac Carheil. The primary objective of the name change is to avoid confusion among all stakeholders (see Figure 2).
- Metals Australia has submitted a new Impact Exploration Assessment (IEA) to the Quebec Ministry of Natural Resources and Forestry (MRNF), following consultation with all stakeholders. The application recognises changes that came into effect from May 6th this year. An application must satisfy the conditions set out in the new regulations and contain questions, requests and comments from local authorities and indigenous communities concerned as well as exploration attributes and delineation of the areas proposed. Metals Australia believes that all Impact concerns raised for a short duration drilling program have been addressed.
- Further contract awards signed. Metals Australia has signed a contract with Lonestar Technical Minerals (LSTM) for the completion of its marketing and pricing strategy as part the overall pre-feasibility (PFS) assessment. This study will investigate the optimum flake-graphite product mix and market opportunities, based on its unique chemical characteristics and flake-size distribution. Graphite is designated as a Critical Mineral in countries such as the USA, Canada, and Australia – given its wide- ranging applications, including as the key anode material in battery energy storage.
- Advancing further detailed proposal reviews for key elements of the project. Significant additional work program scopes are under evaluation, with detailed proposals received and more anticipated. These include Mineral Resource Estimation and Mining Design scopes, which will follow the resource expansion and definition drilling program. Environmental and Social Impact Assessment (ESIA) studies will also be carried out – including baseline environmental studies and ongoing monitoring of the project area. Professional service agreements to support strategic advisory and community engagement programs will also be implemented.
- Progressing previously announced study contracts – Laboratory test work with SGS laboratories is underway, investigating key elements of the design for the Flake Graphite Concentrate Plant, including planned design elements focused on lowering environmental risks associated with long term deposition of tailings. PFS design work with Lycopodium Minerals, Canada is also advancing. Commitments with ANZAPLAN in Germany for downstream design work and location studies are scheduled and will commence when the required sample material has been generated by the SGS test program.
Figure 1: Lac Carheil Graphite Project location, Lac Carheil, Mining Communities, Mining operations, Position of Hydro Quebec 315 KV powerline and proposed new route of main highway (389) to Fermont.
Project Name change to Lac Carheil Graphite project.
Metals Australia has changed the name of the Graphite project to Lac Carheil Graphite Project, as the project’s existing Mineral Resource (13.3 Mt @ 11.5% Graphitic Carbon (Cg) including Indicated of 9.6Mt @ 13.1% Cg & Inferred 3.7Mt @ 7.3% Cg)1 is relatively close to Lac Carheil and a considerable distance from Lac Rainy. Communications have frequently referenced the Carheil trend as the graphite trend on which the current resource exists. The use of Lac Rainy as a project reference has created confusion with stakeholders, given its position to temporarily suspended exploration areas (Figure 2). Figure 2 shows the position of the project resource and lake locations. Also shown are exclusion areas that form part of an Aquatic reserve associated with the Moisie River and its key tributaries, which is approximately 35km south of our current resource. Areas shown in orange have been designated as mining incompatible, while purple areas are under temporary suspension.
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This article includes content from Metals Australia Ltd, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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Metals Australia
Overview
Metals Australia (ASX:MLS) is a mineral exploration company with a high-quality portfolio of advanced battery minerals and metals projects in Tier 1 mining jurisdictions of Western Australia and Canada. The portfolio comprises two critical minerals projects in Quebec, Canada — the Lac Carheil flake graphite project and the Corvette River lithium (and gold) project. The Australian portfolio comprises four projects: Tennant Creek (copper-gold) in the Northern Territory and Warrambie (lithium, nickel-copper, gold), Murchison (gold) and Manindi (lithium, vanadium-titanium, zinc) – all in Western Australia.
The push for net zero targets and the call from policymakers to transition to cleaner energy has intensified the focus on electric vehicles (EVs) and battery storage. The EV automakers and battery manufacturers, rely on essential materials such as graphite and metals, including lithium, nickel, copper and cobalt, to manufacture the batteries that are used in these vehicles and storage batteries generally. This has driven carmakers and battery manufacturers to partner with battery material suppliers under direct off-take agreements. Further, some automakers/battery manufacturers are buying equity stakes in miners, involving them directly in financing decisions for the development of mining projects. This is encouraging for companies such as Metals Australia as it actively advances its projects towards development.
Figure 2 – Graphite is a Critical Mineral required for the mass electrification of auto transportation.
Metals Australia is focused on progressing its flagship Lac Carheil flake graphite project in Quebec, Canada. The project is well-positioned to supply high quality graphite products, including battery-grade graphite to the North American market – including for lithium-ion and EV battery production in the future. The company announced positive sampling results across a 36-km strike length of identified graphite trends at Lac Carheil, including many values over 20% Cg and an exceptionally high-grade sample containing over 63% Cg. The company has planned a drilling program to test new high-grade zones identified from the sampling program, which will form the basis for upgrading the existing Lac Carheil Mineral Resource. An application for the drilling program is progressing with the Quebec regulator. Additionally, the company has recently commenced a Flake Graphite concentrate prefeasibility study with Lycopodium in Ontario and a downstream battery anode plant design with ANZAPLAN in Germany.
Metals Australia is also advancing its lithium, gold and silver exploration project at Corvette River, which is adjacent to Patriot Battery Metals’ world-class lithium project. Further, the company carries out aggressive exploration programs at its other projects, including Manindi, Warrambie & the Murchison in Western Australia and Tennant Creek in the Northern Territory region of Australia.
Metals Australia is well-funded to complete all its planned exploration and project studies. The cash position at the end of Q1 2024 was AU$17.86 million, which we note was higher than the company’s market capital at current share price. Metals Australia benefits from a team of professionals boasting extensive expertise in geology and mining. The appointment of experienced mining executive Paul Ferguson as the CEO is positive for the company. Since joining in January 2024, he has significantly advanced planning and preparation for the exploration, metallurgical test work programs, and design studies required to move its flagship Lac Carheil high-grade graphite project towards development. The Corvette Project has also completed exploration planning and is now fully permitted for drilling and trenching work during the northern hemisphere summer.
Company Highlights
- Metals Australia is rapidly advancing its flag ship Lac Carheil Graphite Project in Quebec, Canada. In addition, the company has a suite of high-quality exploration projects – including Lithium, Gold and Silver in Quebec, Canada and Lithium, Gold, Copper & Vanadium in Western Australia (WA) and the Northern Territory (NT).
- All projects are in Tier-1 mining jurisdictions (Canada and Australia) with world-class prospectivity and stable geo-politically.
- The company has six key exploration and development projects:
- two in Canada: the Lac Carheil high-grade flake graphite project and the Corvette River lithium and gold-silver-copper exploration project, and,
- four in Australia: Warrambie (lithium, nickel-copper, gold), Murchison (gold) and Manindi (lithium, vanadium-titanium, zinc-silver) in WA, and Tennant Creek (Warrego East copper-gold) in the NT.
- The focus is to rapidly advance its flagship Lac Carheil Graphite Project towards development. A drilling program is already contracted to substantially increase the existing JORC 2012 Mineral Resource of 13.3 Mt @ 11.5 percent graphitic carbon (Cg) and test the potential of the many other identified high-grade graphite trends.
- The 2020 Scoping Study on Lac Carheil based on the existing resource, representing only 1km of drilling out of the total 36kms of identified graphite trends, indicates a 14-year mine life with a production of 100,000 tons per annum and a pre-tax NPV @ 8 percent of US$123 million (~AUD$190 million).
- There are multiple catalysts at Lac Carheil in the near term including a pre-feasibility study (PFS) (underway), a scoping study on downstream battery (anode) - grade graphite production, and planned drilling aiming to at least double the resource as well as test other identified high-grade graphite trends.
- Furthermore, other projects in Canada including the Corvette River lithium and gold targets, and exploration in Australia at Manindi, Warrambie, Murchison and Warrego – are all seeing active progress.
- The company is well-funded to complete all its planned exploration and project studies. The cash position at the end of Q1 2024 was AU$17.86 million.
- Metals Australia is led by a seasoned board and management team possessing extensive mining sector experience and a proven track record of successful discoveries and project developments. With funding in place, the company is well-positioned to capitalise on growth prospects.
Key Projects
Canada
Lac Carheil Flake Graphite Project (MLS 100%)
Conceptual 3D Mining layout from February 2021 Scoping Study (Lac Carheil Project formerly named Lac Rainy Project)
The Lac Carheil Graphite Project is located in eastern Quebec, Canada, a tier 1 mining jurisdiction with access to excellent infrastructure, including hydroelectric power facilities. The project hosts an existing JORC 2012 mineral resource of 13.3 million tons (Mt) @ 11.5 percent graphitic carbon, which was announced in 2020 and a scoping study was completed and reported on in early 2021. Battery test work followed, in Germany, and this demonstrated the Lac Carheil Graphite concentrate could be shaped, purified, coated and used in battery applications with excellent results. Given the above work, the company carried out further field work, recently announcing exceptionally high-grade sampling results from 80 samples on 10 identified graphitic trends across the property. This included a sample containing 63 percent graphitic carbon, and 10 samples containing over 20% Cg. The average grade of the sampling was 11% Cg, which is comparable to the current high-grade resource. The combined strike length of the identified high-grade graphitic zones is over 36 kms. This compares to just 1 km of drilling on 1.6 kms of graphite trend that was utilised to obtain the existing resource. The potential for expanding and upgrading the existing resource remains enormous.
Figure 4 –Lac Carheil Graphite Project - Electromagnetic imagery outlining graphite trends and the resource
Additional drilling and development studies are either planned or are already underway, including a pre-feasibility study for a high grade Flake graphite concentrate product – which has commenced and a downstream purification options assessment and a scoping study for a battery anode facility in North America, which has been contracted. The company also announced it is contract ready for its planned drilling program and will fast-track the program as soon as permits are received from the Quebec regulator.
Corvette River Lithium Project (MLS 100%)
Corvette River Lithium, gold and silver Project is located in Quebec’s James Bay region Metals Australia recently announced that it is fully permitted to advance an extensive field exploration program across its holdings which include the wholly owned East Pontois, Felicie and West Pontois projects, situated within Patriot Battery Metals' (ASX:PMT) CV Lithium Trend, as well as tenements at West and East Eade in the company's parallel Corvette River South Trend. A field mapping and sampling program concluded last year and identified large, potentially lithium-bearing pegmatites immediately along strike from Patriot Battery Metals’ world-class lithium pegmatite discoveries. Additionally, the company has flagged significant gold and silver samples from its review of work previously completed across the field as is illustrated in the diagram below.
Figure 5 – The Corvette Projects in the James Bay region of Canada. Prospective for Lithium, Gold & Silver
Australian Projects
Warrambie Project (MLS 80%)
The Warrambie project is located in the Pilbara region of Western Australia. It is 20 kms west of the Andover Lithium discovery (Azure Minerals (ASX:AZS). Metals Australia has completed geophysical surveys across the area and is identifying targets for further field exploration and drilling.
Warrego East Project (MLS 80%)
Metals Australia acquired the tenements as part of a package purchased from Payne Gully Gold in 2022. The company’s tenements include a granted exploration license (E32725) directly along strike to the east of the Warrego copper-gold deposit, which has a production of 1.45 Million Ounces of gold at 8 grams per tonne and over 90,000 tonnes of Copper at 2%. The Warrego mine operated from the late 1950’s through until 1989. It was found under sedimentary cover. The area and this land package is under detailed review utilizing available geophysical surveys. The company aims to identify further targets hidden under shallow sediment cover.
Big Bell North Project (MLS 80%)
The Murchison tenements were also acquired as part of the Payne Gully Gold transaction. Metals Australia owns exploration licenses at the Murchison gold project, which is adjacent to the >5 million ounces (Moz) Big Bell gold deposit. The company plans to conduct detailed magnetics and gravity surveys to test for extensions and repeats of high-grade gold deposits.
Manindi Project (MLS 80%)
The Manindi project is located in the Murchison District, approximately 500 kms northeast of Perth in Western Australia. The project comprises three mining leases and has an established high-grade zinc mineral resource. The metallurgical test work has located spodumene in samples from a high-grade lithium intersection of 12m @ 1.38 percent lithium oxide, including 3m @ 2.12 percent lithium oxide. The company also made a new vanadium-titanium discovery at the Manindi project.Management Team
Paul Ferguson – Chief Executive Officer
A Mining Engineer, Paul Ferguson has over three decades of experience in the resources and energy sectors across North America, Asia and Australia. He has extensive project development and operational experience working in Canada. He has worked in oil & gas major ExxonMobil across project stages, including feasibility, design, construction, and operation. He has worked in Executive level roles within Australia, including at GMA Garnet and held increasingly more senior roles with BHP (Iron Ore & Coking Coal) and then with Exxon Coal Minerals and Mobil Oil Australia during the early stages of his career.
Tanya Newby – CFO and Joint Company Secretary
Tanya Newby is a finance and governance professional with over 20 years experience in various corporate and commercial roles. She has a strong background in the resources sector and has provided financial advice and assistance to a number of publicly listed entities through exploration, project development through to the production stage. Tanya is a member of the Institute of Chartered Accountants, Member of the Governance Institute of Australia and a Graduate Member of the Institute of Company Directors.
Michael Muhling – Joint Company Secretary
Michael Muhling has over two decades of experience in the resources, including 15 years in senior roles with ASX-listed companies. He is a fellow of CPA Australia, The Chartered Governance Institute, and the Governance Institute of Australia.
John Dugdale – Technical Advisor
John Dugdale is a geologist with over 35 years of experience in the discovery and development of graphite, lithium, gold, nickel and copper projects. His corporate experience includes serving as a director and CEO of several junior resource companies focused on nickel-cobalt, graphite and copper-gold projects. Additionally, he has experience in funds management with Lion Selection Group.
Chris Ramsay – General Manager Geology
Chris Ramsay is a geologist and project manager with over 25 years of experience in the global mining industry. He has been involved in exploration, mine development and operations for mining projects in Australasia, Southeast Asia, and parts of Africa and North America.
Board
Michael Scivolo – Non-executive Chairman
Michael Scivolo has extensive accounting and taxation experience for corporate and non-corporate entities. He was a partner/director at a CPA firm until 2011 and has since been consulting in accounting and taxation. Scivolo is on the boards of several ASX-listed mining companies, including Sabre Resources, Golden Deeps and Tennant Minerals Ltd.
Alexander Biggs – Non-executive Director
Alexander Biggs has over 20 years of experience in the mining and engineering sector. During his career, he has been involved in various activities, including operations, consulting, finance and capital raising. He is currently the managing director of Lightning Minerals (ASX) and was previously the managing director of Critical Resources (ASX:CRR). Biggs is a member of the Australian Institute of Mining and Metallurgy and a graduate of the Western Australian School of Mines.
Rachelle Domansky – Non-executive Director
Rachelle Domansky is an ESG specialist and a consulting psychologist for businesses, governments and educational institutions in the Asia-Pacific region. In addition to Metals Australia, Rachelle holds non-executive board positions at Quebec Lithium and Access Plus WA Deaf.
Basil Conti – Non-executive Director
Basil Conti has been associated with the mining industry for over 25 years. He is a fellow of the Institute of Chartered Accountants Australia & NZ and was a partner/director of a chartered accounting firm in West Perth until 2015.
Exceptional Downstream Milling and Purification Testwork Results
HIGHLIGHTS
- Further bench scale micronising, spheroidising and purification testwork completed on Springdale Graphite Project concentrates.
- A two product spherical graphite – SpG11 and SpG18 – yield of up to 76% achieved.
- Purification testwork achieves 99.99% - well above highest purity anode material product specification of 99.97%.
The testing, conducted by industry specialists ProGraphite GmbH, used 23kg of 95.3% loss on ignition (LOI) grade Springdale graphite concentrates to produce purified spheroidised graphite product.
Micronising and spheroidising (milling) testwork investigated several process circuit options resulting in two spheroidised graphite products – SpG18 and SpG11 – and a yield of up to 76% at a product size of D50 18µm (micron) and D50 11µm. The properties of both the SpG18 and SpG11 products exceeded the quality and physical specifications typically required for active anode materials.
The SpG samples were purified using an acid-based purification process. Purification testwork achieved 99.99% LOI grade, well exceeding the published industry benchmarks for anode materials. Figure 1 shows a Scanning Electron Microscope (SEM) typical image of the purified SpG18 (D50 18µm) sample.
International Graphite Technical Director David Pass said, “This testing was designed to optimise the milling processes with the goal of improving product output. The results are highly encouraging and show there is significant potential to increase yield well beyond the projections in our original scoping study1.
“The purification results have also reinforced original findings that Springdale graphite can achieve the purity standards industry typically requires for the production of active anode materials.”
Managing Director and CEO Andrew Worland said, “These results are another significant milestone in the development our mine-to-market production strategy and further evidence that our 100% owned Springdale Mineral Resource is a vital asset perfectly suited to the high growth lithium-ion battery anode sector.
“The unique operating expertise and intellectual property we are gaining from our R&D processing facilities in Collie is making an invaluable contribution to the development of our downstream flowsheet. This, coupled with further testwork, will significantly advance our battery anode feasibility studies.”
Figure1 SEM Image of SpG18 graphite sample
The purified SpG sample material will be used in future coating testwork and to advance process flowsheet development and equipment selection for the production of active anode material for batteries.
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This article includes content from International Graphite, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
NextSource Materials
Overview
Vision Blue Resources Ltd, a battery commodity/resource-focused investment company founded by Sir Mick Davis (former CEO of Xstrata Plc), made a significant strategic investment in NextSource Materials in 2021 to fully fund the construction of its Molo graphite mine in Madagascar. Production has begun, with Phase 1 mine operations currently undergoing ramp up to reach its nameplate production capacity of 17,000 tpa of graphite concentrate.
According to UK’s Benchmark Minerals Intelligence, battery demand for flake graphite is expected to grow between 5-7 fold by 2035. This dramatic spike in demand is due to graphite’s critical role as the anode material in lithium-ion batteries. Electric vehicle batteries contain between 60 to 90 kilograms of graphite per battery. By volume, graphite is the largest raw material in a lithium-ion battery. As the electric vehicle market continues to grow, investing in the companies that produce these valuable battery materials and have first-mover advantage can provide significant value-creation and exposure to this expanding market.
NextSource Materials Inc. is a battery materials development company based in Toronto, Canada that is intent on becoming a vertically integrated global supplier of battery materials through the mining and value-added processing of graphite and other minerals.
The Company’s Molo graphite project in Madagascar is one of the largest known and highest-quality graphite resources globally, and the only one with SuperFlake® graphite.
The Company is also developing a significant downstream graphite value-add business through the staged rollout of Battery Anode Facilities capable of large-scale production of coated, spheronized and purified graphite for direct delivery to battery and automotive customers, outside of existing Asian supply chains, in a fully transparent and traceable manner.
Graphite in Madagascar is renowned for its quality and flake size. For almost a century, Madagascar has been exporting flake graphite to the world but in limited quantities. Molo will catapult Madagascar to a top 5 graphite producing country. With its Green Giant vanadium project also within close proximity to the Molo project, NextSource Materials controls two very strategic sources of battery materials at one source.
For further information about NextSource visit our website at www.nextsourcematerials.com or contact us a +1.416.364.4911 or email Brent Nykoliation, Executive Vice President, Corporate Development at brent@nextsourcematerials.com or email Craig Scherba, President and CEO at craig@nextsourcematerials.com.NextSource’s 100 percent owned and fully permitted Molo graphite project drew investor attention for its large, high-quality flake graphite deposit and unique SuperFlake graphite concentrate. Sir Mick Davis’s strategic investment of US$29.5 million in NextSource in May 2021 provided the entire funding to bring the Molo Graphite mine into production.
“This investment in NextSource underlines our belief that the massive secular change in demand for critical battery material resources is not being met by an appropriate supply-side response, largely as a result of capital constraints,” Davis stated.
The company utilized an all-modular build approach to construct the Molo mine. Phase one production will be approximately 17,000 tonnes per annum over the first two years with further planned expansion in year three.
The company made its first bulk container shipment of SuperFlake® graphite in October 2023 to its downstream technical partner's battery anode facility to be processed into spheronized, purified graphite (SPG) that will then be further processed into coated SPG (CSPG) as part of large scale, multi-step verification tests being conducted by automotive EV supply chains in South Korea and Japan. The first series of verification test results are expected back in Q1 2024.
In April 2021, the company finalized an exclusive technical partnership with a Japanese company thatprovides SPG to leading Japanese anode and battery makers, who in turn supply the Tesla and Toyota supply chains. NextSource has secured the licensing of a well-established process to produce SPG that is currently used in EV supply chains, as well as a coating technology that has been verified by a major Japanese coating company to produce CSPG. The company has also executed a commercial offtake agreement with thyssenkrupp Materials Trading GmbH, an international trading and services company headquartered in Essen, Germany, for the sale of 35,000 tpa of the SuperFlake® graphite products.
NextSource’s other highly prospective project, the Green Giant vanadium project in Madagascar, stands out for its sediment-hosted deposit profile, which is only seen in approximately 5 percent of total vanadium occurrences.
The company believes strongly in vanadium’s potential market growth with the popularization of VRBs as a leading technology for green energy applications. Since project acquisition in 2007, NextSource has spent over US$20 million on the exploration and development of the Green Giant.
NextSource’s management team and directors bring decades of professional mine development and capital markets expertise. NextSource has assembled an impressive team with a proven track record in mine operations and building shareholder value. This positions the company for significant growth and economic success as it strives to meet the world’s increasing demand for graphite.
Company Highlights
- The Molo graphite project in Madagascar is one of the largest known and highest-quality graphite resources globally, and the only one with SuperFlake® graphite. The Molo mine has begun production, with Phase 1 mine operations currently undergoing ramp up to reach its nameplate production capacity of 17,000 tpa of graphite concentrate.
- Vision Blue Resources, a fund headed up by Sir Mick Davis that invests in strategic battery materials, is NextSource’s largest shareholder.
- Sir Mick Davis is NextSource’s chairman and this mining heavyweight brings years of valuable experience in mine development and operations expertise.
- NextSource will complete a feasibility study in November 2023 for its Phase 2 expansion of an additional 150,000 tonnes in order to meet the significant forecasted demand for graphite. Timing for Phase 2 construction is expected to take 18 months to complete from a final investment decision and when funding is in place, which would be predicated on securing an OEM offtake.
- NextSource is one of extremely few graphite companies to have secured long term offtakes with reputable partners. The first is for the sale of 20,000 tonnes per annum with a prominent Japanese trader that supplies the Tesla and Toyota battery supply chains, and the second is with thyssenkrupp Materials Trading for the sale of 35,000 tonnes per annum of SuperFlake® graphite concentrate.
- The Company is also developing a significant downstream graphite value-add business through the staged rollout of Battery Anode Facilities (BAFs). These BAFs will be capable of large-scale production of spherical, purified graphite (SPG) and coated SPG (CSPG) using established processing expertise for direct delivery to battery and automotive customers, outside of existing Asian supply chains, in a fully transparent and traceable manner. Construction of its Phase 1 BAF in Mauritius is expected to be completed by the end of 2024.
- The Company also owns the Green Giant vanadium project, an advanced stage NI 43-101 resource that is one of the world’s largest known vanadium deposits. The sediment-hosted geophysical profile of this vanadium deposit is well-suited for vanadium redox batteries, which are a leading battery technology for large scale energy storage applications.
- NextSource Materials is listed on the Toronto Stock Exchange (TSX) under the symbol “NEXT” and on the OTCQB under the symbol “NSRCF".
Key Projects
Molo Graphite Mine and Project
The Molo graphite project ranks as one of the largest-known and highest-quality flake graphite deposits in the world. The property is over 62.5 hectares, sits in the Tulear region of Southwestern Madagascar and is located 11.5 kilometers east of the town of Fotadrevo.
The Molo mine has begun production, with Phase 1 mine operations currently undergoing ramp up to reach its nameplate production capacity of 17,000 tpa of graphite concentrate.
Total combined graphite resources at Molo are 141.28 million tonnes at 6.13 percent total graphitic carbon, with a contained ore reserve of 22.44 million tonnes at 7.02 percent graphitic carbon. The company has delineated over 300-line kilometers of continuous graphite mineralization at surface. NextSource has virtually an unlimited supply of graphite it can bring to the market in lockstep with demand.
NextSource has superior flake size distribution and well above the global average. The Molo asset is relatively unique for having almost 50 percent premium-priced large and jumbo flake graphite and can achieve up to 98 percent carbon purity with simple flotation alone. Molo SuperFlake® has been verified by end-users and meets or exceeds all criteria for the top demand markets for flake graphite; anode material for lithium-ion batteries, refractories, graphite foils and graphene inks.
NextSource has completed a series of feasibility studies on the project since 2015, with an updated feasibility study for phase two mine expansion expected in Q4 2023.
For all details and assumptions relating to the parameters of the mineral resource, reserve estimates, and data verification procedures for phase one of the Molo Project, please refer to the company’s website at nextsourcematerials.com.
Green Giant Vanadium Project
The 100-percent-owned Green Giant vanadium project is an advanced-stage exploration project located in South-central Madagascar and is one of the world’s largest known vanadium deposits. The project leverages ideal mining conditions and is in close proximity to NextSource’s Molo graphite mine.
The Green Giant Project is a rare type of vanadium deposit because it is sediment-hosted. No magnetic metals are associated with Green Giant’s vanadium, making the project ideal for producing high-purity vanadium pentoxide, a key material in vanadium redox batteries.
The property’s NI 43-101 compliant resource measures an estimated 60 million tonnes of vanadium pentoxide at an average grade of almost 0.7 percent at a 0.5 percent cut-off.
Management Team
Brent Nykoliation — Executive Vice-president
Brent Nykoliation joined the senior management team at NextSource Materials as vice-president in 2007 and leads the development and implementation of strategic partnerships and offtakes with supply chain customers. In addition, Nykoliation oversees all communications with institutional investors and analysts for the company.
He brings over 20 years of senior management experience, having held marketing and strategic development positions with several Fortune 500 corporations in Canada, notably Nestlé, Home Depot and Whirlpool.
Nykoliation holds a Bachelor of Commerce with Honours degree from Queen’s University.
Marc Johnson — Chief Financial Officer
Marc Johnson is a bilingual senior executive with over 20 years of business experience, including ten years at public corporations as CFO, VP of corporate development and other financial management positions, and ten years in capital markets in investment banking and equity research. Johnson is a chartered financial analyst and a chartered professional accountant and joined as CFO in October 2015. He also holds a bachelor of commerce (finance) from the John Molson School of Business at Concordia University in Montreal.
Jonathan (Johnny) Velloza- Interim Chief Operating Officer
Jonathan Velloza has a wealth of technical and operating experience in the mining industry spanning 30 years during which he managed operational optimization processes and large capital expansions across a range of commodities and in many jurisdictions. Velloza was previously Deputy CEO and COO of Gem Diamonds and CEO of Chemaf. Prior to this, he was with BHP Western Australia Iron Ore where, from 2013 to 2015, he was general manager at the largest iron ore mine in the BHP portfolio, leading a number of successful operational efficiency programs. He also acted as a senior exploration manager in Zambia and in Chile for BHP from 2011-2013, operations manager at AngloGold Ashanti from 2009-2010 and held numerous managerial positions at De Beers from 2001-2009.
Velloza holds a Bachelor’s degree in Mining Engineering from The University of Johannesburg and a Bachelor’s degree in Business from The University of South Africa.
Danniel Stokes - VP, Special Projects
Daniel Stokes joined NextSource in 2022. During his career, he has been responsible for providing project management support across a diverse portfolio of projects in mining, infrastructure, and nuclear industries; developing tools, implementing best practices and mentoring apprentices. Stokes holds degrees in engineering and business and has a qualification in project management from the Association for Project Management.
Markus Reichardt - VP, Sustainability
Markus Reichardt joined NextSource in 2023 and brings a practical understanding of integrating ESG into all stages of the project cycle based on a 25 year track record in operational, senior corporate and advisory roles in the resources, agricultural and renewables sectors across the developing world.
Reichardt is responsible for driving the Group’s safety, health, environment, social, climate change and quality performance and initiatives.
Reichardt is a former corporate environmental manager of AngloGold and holds degrees in history and restoration ecology.
Wilhelm Reitz - General Manager, Molo Mine
Wilhelm Reitz is a mine management professional with 28 years of experience in the global mining sector, with the last 11 years focussed on critical minerals and in developing technologies through design, engineering, and research on graphite. Reitz held senior management roles with AfriGold in Senegal and West African Diamonds in Sierra Leone and Guinea. Prior to joining NextSource, he was involved in developing and managing graphite mines in Madagascar for Stratmin Global and Greenwing Resources. Reitz holds a BSB Diploma in Leadership and Management and studied with AIM in Australia, faculty of management.
Lydia Boarlaza - Country Manager, NextSource Materials
Lydia Boarlaza joined NextSource as Country Manager in January 2021 and has had extensive management experience in the Madagascar mining sector over her career. She has served in general manager and resident manager roles for various companies including Madagascar Consolidated Mining S.A., Madagascar Oil S.A., Avana Group, Hunt Oil Madagascar, and Shell Exploration & Development Madagascar BV. She is a member of the board of directors of Madagascar Chamber of Mines, member of the National Committee within the EITI Madagascar, and member of the Women in Mining and Resources Association in Madagascar.
Board of Directors
Sir Mick Davis — Chairman
Sir Mick Davis is the CEO of Vision Blue Resources and a highly successful mining executive accredited with building Xstrata plc into one of the largest mining companies in the world before its acquisition by Glencore plc. Before listing Xstrata on the LSE as CEO he was CFO of Billiton plc and Chairman of Billiton Coal which he joined from the position of Eskom CFO. During his career in mining, he has raised over US$40bn from global capital markets and successfully completed over US$120bn of corporate transactions, including the creation of the Ingwe Coal Corporation in South Africa; the listing of Billiton on the LSE; the merger of BHP and Billiton; as well as numerous transactions at Xstrata culminating in the sale to Glencore plc. Sir Mick Davis is a chartered accountant by profession and holds an honours degree in commerce from Rhodes University, South Africa and an honorary doctorate from Bar Ilan University, Israel.
Hanré Rossouw - President and Chief Executive Officer
Hanré Rossouw joins NextSource from his role as executive director and chief financial officer of Sasol Limited with extensive experience in the global natural resources industry over the last 25 years. A British and South African national, Rossouw has held senior positions in leading global mining and investment companies where his roles involved business development, M&A, capital markets, asset management and growth optimization. Rossouw was chief financial officer and executive director of Royal Bafokeng Platinum between October 2018 and March 2022 having joined after 5 years as a portfolio manager at Investec Asset Management. He was latterly CFO of the Alloys Division having been part of the small head office team which completed numerous international transactions and associated fundraisings as part of a corporate development plan which grew the market capitalization fivefold during his tenure. Rossouw worked at both Accenture and as a project manager with De Beers Group having started in the mining industry as a metallurgist with Anglo American in 1998. He studied chemical engineering at Stellenbosch University and Economics at the University of South Africa as well as completing an MBA at the University of Oxford's Said Business School.
Ian Pearce – Director
Ian Pearce is the former CEO of Xstrata Nickel, and was the former COO of Falconbridge Limited, which was acquired by Xstrata Plc in 2006. Xstrata Plc’s acquisition of Falconbridge was one of the largest mining takeovers globally and one of the largest takeover bids in Canadian history. Pearce was also a founding partner of X2 Resources who, along with Sir Mick Davis, made up the team of six ex-Xstrata executives who formed the mid-tier diversified mining and metals company. He currently serves as a director for several global companies in the mining and metals, energy, and sustainability industries. Pearce previously served as chair of the Mining Association of Canada and chair of the Nickel Institute. He holds a BSc from the University of the Witwatersrand, South Africa and an HNDT in Mineral Processing from the University of Johannesburg, South Africa.
Craig Scherba — Director and Chief Development Officer
Craig Scherba was appointed president and CEO in September 2012 and has been a director since January 2010. Previously, Scherba served as vice president of exploration of the company, since January 2010. Scherba was a managing partner for six years with Taiga Consultants, a mining exploration consulting company. He has been a professional geologist since 2000, and his expertise includes supervising large Canadian and international exploration programs. Scherba was an integral member of the exploration team that developed Nevsun Resources’ high-grade gold, copper and zinc Bisha project in Eritrea. He served as the company’s country and exploration manager in Madagascar during its initial exploration stage, discovering both the Molo Graphite and the Green Giant Vanadium deposits.
Brett Whalen — Director
Brett Whalen has over 20 years of investment banking and M&A expertise, spending over 16 of those years at Dundee Corporation. During his tenure at Dundee, Whalen was directly involved in completing approximately $2 billion in M&A deals and helped raise over $10 billion in capital for resource sector companies. While a vice president and portfolio manager of Goodman & Co., he oversaw the investment of $6 million into NextSource, enabling the company to achieve key technical milestones, notably the completion of its July 2017 Phase One Feasibility Study and the concept and design of the whole modular build approach NextSource will be utilized for construction of both Phase One and Phase Two of the Molo mine. Whalen has extensive knowledge of both graphite and vanadium and the general battery materials industry.
Whalen has held board seats of several TSX-listed and privately held companies and holds a BA (Honours) degree in Economics and Finance from Wilfrid Laurier University.
Christopher Kruba — Director
Christopher Kruba is vice-president and legal counsel to Nostrum Capital Corporation and several related corporations that are part of the Toldo Group. The Toldo Group is headquartered in Windsor, Ontario and is composed of several privately held corporations in Canada and the United States, some of which have large manufacturing operations in diversified sectors and others that are involved in active and passive investments across capital markets throughout North America, Europe and Africa. In addition to his responsibilities as counsel to the Toldo Group, Kruba serves as corporate secretary to all the companies, is a member of the group’s investment committee and serves on the board of directors of many of the companies.
Springdale Continues to Build with Further Spectacular Diamond Drilling Assays
HIGHLIGHTS
- Another set of spectacular assay results from diamond drilling at the Springdale Central deposit.
- Stand out graphite intercepts1 include:
- 11.1m @ 16.9% Total Graphitic Carbon (TGC) from 23.1m downhole (SGDD0021)
- 13.4m @ 19.2% TGC from 35.3m downhole, including 2.9m @ 31.4% TGC from 38.8m downhole (SGDD0021)
- 10.3m @ 36.3% TGC from 41.8m downhole (SGDD0022)
- 3.8m @ 21.3% TGC from 17.2m downhole, including 3.1m @ 25.5% TGC from 17.9m downhole (SGDD0017)
- 9.7m @ 6.2% TGC from 75.8m downhole (SGDD0017)
- 28.7m @ 12.1% TGC from 93.0m downhole, including 4.1m @ 23.3% TGC from 112.0m downhole (SGDD0019)
It follows outstanding results received last month2 from the Springdale Mason Bay deposit.
A ten-hole PQ diamond drilling program was completed between May and July this year at the Mason Bay and Springdale Central deposits. The program focussed on geotechnical drilling, to inform mine planning and permitting, and to provide metallurgical data for concentrator plant process design.
Of the six holes drilled at Springdale Central, SGDD 22 - a twin of SGRC 18 - and SGDD 21 are located approximately in the centre of the Springdale Central and SGDD 17 and 19 were drilled at the northern end of Springdale Central. The results continue to confirm the continuity of mineralisation along strike, the grade and overall veracity of the mineral resource. SGDD 18 and 20 were drilled for geotechnical purposes in the proposed pit walls of Springdale Central.
Managing Director and CEO Andrew Worland said, “We have said it before, but it bears repeating, it is clear to us that a spectacular graphite deposit is continuing to reveal itself at Springdale. The more we drill at Springdale the more high grade, thick, near surface intercepts of graphite mineralisation we find. So many of the key determinants for a low-cost mine are present: shallow overall deposit depth, limited drill and blast, good grades, oxidised material for processing, single product lines – and all in a tier one mining jurisdiction. On top of all the positive attributes, the exploration potential for future mineral resource growth is clear to see.”
Figure 1: Location of International Graphite projects, in Western Australia
Figure 2 shows the location and significant intercepts of the six diamond holes at Central. Results are detailed in Tables 1 and 2.
Figure 2: Springdale Central Cross-section showing multiple graphite zones intersected for SGDD0017 and SGDD0019
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This article includes content from International Graphite, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Altech – CERENERGY® First 60 KWh Prototype Online and Achieving Great Results
Highlights
- CERENERGY® 60 KWh prototype completed and operating
- Undergoing daily testing with battery test station at Dresden
- Outperformed early expectations
- Exhibiting exceptional efficiency and robust performance
- Maintains safe, optimal operating temperatures
- Ongoing testing providing critical data for off-take parties
- Strong commercial potential for large-scale production
- Separate individual cell testing conducted
- Demonstrates performance to published specifications
Photo: Ms Daniela Herold (Fraunhofer IKTS Battery Development Leader) taking CERENERGY® ABS60 through its paces
Altech’s CEO and MD Iggy Tan stated“We are extremely pleased that the first CERENERGY® 60kWh battery prototype is now up and running and operating better than expected, reconfirming our confidence in the sodium-chloride solid-state battery technology developed by the world-leading Fraunhofer Institute in Germany. Using common table salt technology and without the requirement for lithium, copper, cobalt, graphite and manganese, the CERENERGY® battery can operate in a wide range of temperatures and has a life of 15 years, around double that of lithium-ion batteries.
The prototype can now be demonstrated under real-world conditions, providing critical data for off-take parties. This will be invaluable as Altech pushes forward with sales and finance to construct the first 120MWh plant. With the first Letter of Intent for 30MWh of offtake with Schwarze Pumpe Industrial Park recently announced, we envisage that having the CERENERGY® 60kWh battery prototype up and running and exceeding expectations, will further assist in the offtake process”.
Initial results from the testing are extremely promising. The ABS60 battery has outperformed early expectations, exhibiting exceptional efficiency and robust performance across all key metrics. Notably, the battery has maintained excellent thermal stability, a crucial factor in high-capacity energy storage systems. Throughout rigorous testing, it has operated within safe temperature limits, with no signs of overheating. This highlights the effectiveness of the battery's thermal management system, which plays a vital role in enhancing both the safety and longevity of the battery. These early findings confirm the battery’s design integrity and bolster confidence in its commercial viability. The ABS60 prototype is expected to continue undergoing further testing and refinement, providing critical data for potential off-take parties.
The success of this prototype positions Altech Batteries at the forefront of advanced battery technology, offering a reliable and efficient energy storage solution.
Comment from Mr Uwe Ahrens,
Managing Director of Altech Batteries GmbH
You Tube https://youtu.be/BLrh0bHutlclink
Individual Cell Testing
An individual cell testing program has also been conducted by the Fraunhofer team at Hermsdorf, Germany. Separate battery cells underwent extensive testing, highlighting their performance and stability. A total of 497 individual battery cells were produced. The cells were tested at an operational temperature of 300°C. Key results from over 500 cycles demonstrated stable performance, including a consistent discharge capacity of 80 Ah and an efficiency of up to 91%. The discharge energy and capacity remained stable without any indication of degradation occurring across the 500 cycles, and the average discharge voltage held steady throughout the tests.
Discharge and overcharge stress and abuse tests were conducted without any cell failures, confirming the cells’ durability. These findings demonstrate the cells’ potential for long-term stability, high energy capacity, and reliability in high-temperature applications.
Photo: Prototype 60 KWh battery being assembled and tested at Fraunhofer IKTS laboratory
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This article includes content from Altech Batteries, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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