Springdale–Collie Integrated Mine to Market Scoping Study

International Graphite Limited (ASX:IG6) has today released key findings from its new Springdale–Collie Integrated Mine to Market Scoping Study.

The study positions the Company’s planned Springdale mine and Collie downstream processing facilities as a world leading development-stage graphite asset. The mine to market operation would supply graphite products for the lithium-ion battery industry from Western Australia – the world’s premier jurisdiction for raw materials.

The study shows a:

• globally competitive cost structure
• multi-decade operating life – ~15% of the existing Springdale Mineral Resource has been scheduled
• robust project economics with significant potential for expansion at both Springdale and Collie.

The Company expects to complete a Definitive Feasibility Study by the end of calendar year 2024.

The Springdale–Collie Integrated Mine to Market Scoping Study incorporates a preliminary technical and economic investigation to assess the viability of developing a graphite mining and concentrate production operation at the Springdale Graphite Project on the south coast of Western Australia (Springdale Scoping Study).

It is intended that Springdale would supply graphite concentrates to the Company’s planned downstream processing facility at Collie, 200km south of Perth, in Western Australia. The Collie operation, known as the Collie BAM Facility, would produce battery anode materials (BAM) for the lithium-ion battery industry.

An initial scoping study for the Collie BAM Facility was released to the ASX on 23 April 2023 and has now been updated, based on using concentrates produced at Springdale instead of imported graphite feedstock. The results form the basis of the Springdale–Collie Integrated Mine to Market Scoping Study.

Key metrics in the study’s base case, for the first 15 years of operations, are:

• Springdale concentrator throughput 500,000tpa
• Feed grade average 9.5% Total Graphitic Content (TGC)
• Springdale average concentrate production 45,000tpa
• Waste to ore ratio 4.3 to 1
• Springdale capital cost of mine and concentrator A$76M
• Springdale all in sustaining cash operating cost estimate US$485 per tonne of concentrate
• Average Uncoated Spherical Purified Graphite (USPG) production 20.0ktpa
• Average Coated Spherical Purified Graphite production (CSPG) 18.6ktpa
• Capital cost of Collie USPG plant A$124M
• Capital cost of Collie CSPG plant an additional A$217M
• USPG average all in sustaining cash operating cost estimate US$1603 per tonne of product
• CSPG average all in sustaining cash operating cost estimate US$2,699 per tonne of product
• Financials Integrated USPG Project NPV10 A$375M; IRR 35.8%
• Financials Integrated CSPG Project NPV10 A$603M; IRR 30.5%
• Extensive resource potential for significant project scale up from the base case

IG6 Managing Director and CEO Mr Andrew Worland said the company was confident that Springdale would be a project of global significance for Australia in the critical battery minerals supply chain.

“We now have a clear economic and financial view of the breadth of the Springdale–Collie mine to market strategy. Springdale compares exceptionally well with its industry peers across a range of measures, particularly the forecast mine capital and operating costs.”

The latest Springdale Mineral Resource estimate, released in September 2023, provides a compelling argument for expanding future operations beyond the Springdale Scoping Study base case.

“Less than 15% of the current Springdale Mineral Resource estimate has been scheduled and modelled so far and the production plan has yet to be optimised at this early stage of investigation.

“Our immediate focus is to move rapidly through the definitive feasibility phase for Springdale and to accelerate further infill resource and exploration drilling at Mason Bay, one of the newest graphite finds at Springdale, so we can continue expanding and upgrading the current Mineral Resource estimate.”

The Company’s planned activities have received strong support from state and federal government and the local communities of Hopetoun, Ravensthorpe and Collie.

“Graphite for batteries is fast becoming the centre of geo-political tensions and highly sought after, particularly after the Chinese government’s recent decision to restrict the export of its graphite products. China currently supplies more than 80% of the world market.

“This leaves the global battery supply chain highly exposed. Firms across Europe, North America, Korea and Japan have made enormous commitments to build out battery gigafactory capacity and they all rely on a stable, reliable and consistent supply of raw materials, including graphite.

“Operating entirely in Western Australia strengthens the Company’s position as a supplier of first choice for global markets.”

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