Following an extensive drilling campaign, iTech Minerals (ASX:ITM) has delivered a major increase to the graphite resource at its Eyre Peninsula Project in South Australia.
The combined reverse circulation and diamond drilling drilling program, carried out in late 2023 and early 2024, was the largest undertaken by the company since it listed in 2021, with 130 holes totalling 15,192m.
Notably, the upgraded Eyre Peninsula resource features the addition of a maiden resource estimate at the Lacroma deposit, which measures 26.6 million tonnes at 5% total graphitic carbon (TGC), representing more than 1.3 million tonnes of contained graphite.
That helped boost the overall estimate at Eyre Peninsula to 35.1 million tonnes at 6% TGC, representing 2.1 million tonnes of contained graphite, up from 8.55 million tonnes @ 9% TGC, amounting to 770,800 tonnes previously.
Managing Director Mike Schwarz says the updated resource is a “massive achievement” after just 12 months of drilling.
“Importantly, the simple geology and metallurgy of the Lacroma deposit gives it all the hallmarks of a low-risk and potentially low-cost mining operation, which will no doubt prove especially important in a global market that has shown volatile graphite pricing,” Schwarz says.
“With the definition of a significant resource, we have the confidence to move forward to the next phase of developing this exciting project, and I look forward to helping the world meet the graphite shortages that many analysts are predicting over the next decade.”
The Lacroma deposit is one iTech views as particularly compelling for a number of reasons. Mineralisation occurs from the surface, with a moderately shallow eastward dip suggesting a low strip ratio and the potential for the early delivery of products to market.
The groundwater table is also 60m to 80m deep, alleviating requirements for groundwater management, while the metallurgy appears to be simple with “exceptionally high” recoveries.
Metallurgical testing is continuing with samples from Lacroma. Bulk-scale flotation testing has been completed to determine how such graphite performs at a larger scale — a process expected to produce enough concentrate to begin purification and spheroidisation testing.
In addition, iTech has commissioned a consultant to determine costs for a graphite concentrate pilot plant based on the results of the metallurgical testing. This, the company says, will allow it to produce enough samples for qualification testing by potential offtake partners.
Planning for an extensional drilling campaign at Lacroma is also underway, with the aim of adding further tonnes from the south of the deposit. However, any proposed drilling activities remain subject to approval by iTech’s board, and would likely occur next year when the cropping season has finished.
The Eyre Peninsula Project spans 1,445km2, located 30km from shipping facilities at Lucky Bay and 70km from the industrial mining town of Whyalla.
Write to Oliver Gray at Mining.com.au
Images: iTech Minerals
