Renascor Resources Limited (ASX: RNU) has announced an encouraging update regarding the production of large-scale marketing samples from its 100%-owned Siviour Graphite Project on South Australia’s Eyre Peninsula.
The company reported that approval was granted by South Australia Department for Energy and Mining for extracting 60 tonne bulk sample from RNU’s Siviour Graphite Project.
Renascor said that the ore extracted from bulk sample will be used in pilot plant production in China.
The company reported that large-scale marketing samples from the bulk sample and processing program will be provided to potential end-users and strategic partners to permit advanced testing and qualification.
Siviour project
Siviour graphite project is a high-grade open-pit mine being developed by Renascor Resources in Eyre Peninsula, Australia.
The mineral resource estimate for Siviour is 6.6 million tonnes of graphite contained in 87.4 million tonnes @ 7.5 per cent total graphite carbon for, with a probable reserve of 45.2 million tonnes grading 7.9 per cent for 3.6 million tonnes of contained graphite.
Encouraging DFS results
Renascor Resources had recently declared the results of a Definitive Feasibility Study (DFS) for Siviour project.
The study determined Siviour to be a world-class, low-OPEX project with a projected life of mine (LOM) operating cost of $508 or US$355 per tonne (A$471 or US$330 per tonne over first ten years), placing it amongst the lowest projected operating costs globally.
The company had reported that the results confirmed Siviour’s potential as a low-cost, long-life graphite project that can achieve consistently attractive profit margins even in the current lower graphite price environment.
Approval for PEPR application
RNU had submitted a Program for Environment Protection and Rehabilitation (PEPR) to the South Australia Department for Energy and Mining earlier this year. The application was to extract a 60 tonne bulk sample from its 100%-owned Siviour Graphite Project on South Australia’s Eyre Peninsula.
Renascor reported that DEM has now approved the PEPR application permitting Renascor to commence collection of the bulk sample.
Previous pilot testing
It may be noted that Renascor had previously conducted pilot testing on 18 tonnes of sample of Siviour ore.
The previous program was conducted primarily to confirm grade, recovery and other flowsheet parameters adopted in the Siviour Definitive Feasibility Study, with graphite concentrates produced from the trial used for initial customer testing, as well as downstream spherical graphite testing.
Pilot production in China
The company announced that the ore extracted from the new 60-tonne bulk sample will be used in a pilot plant production trial in China.
Renascor said that the graphite concentrates to be produced from this bulk sample and processing program will permit the production of large-scale marketing samples that will supplement the previously provided smaller-scale marketing samples.
The company reported that this will permit potential end-users to undertake more advanced testing and qualification of Siviour graphite.
Next steps
RNU said that the bulk sample drilling is expected to commence next month, to be followed by pilot plant production in China.
Management comments
Renascor Managing Director David Christensen said: “Since the completion of the Siviour Definitive Feasibility Study last month, we have received positive feedback from potential off-take and strategic partners who are seeking a secure, long-term supply of graphite to cover projected shortages in graphite supply as lithium-ion battery anode demand for graphite continues to grow.
With this approval granted, we will now be able to supplement previously provided samples of Siviour graphite with large-scale quantities as we seek binding offtake agreements to permit us to finance the construction of the mine and processing plant at Siviour.”