Lincoln Minerals (ASX:LML) is progressing a Prefeasibility Study (PFS) for the Kookaburra Graphite Project in South Australia.
The company will pursue a staged development approach at the project, with the aim to deliver the first producing graphite mine in recent times.
Lincoln Minerals, which has a market capitalisation of $10.28 million, believes the project has the potential to deliver low start-up capital and operating costs, and is likely to generate “positive” operating margins and an acceptable rate of return.
During phase one of the development, prior to a project expansion phase to scale operations to a level that will position Kookaburra as a potential tier-one global graphite mine, the company targets production up to 20,000 tonnes per year of high-quality graphite concentrate from the existing mining lease.
Phase two will comprise expanding operations up to 75,000 tonnes per year of high-quality graphite concentrate after achieving the mining licence expansion in subsequent years.
Lincoln Minerals has uncovered three key advantages which underpin Kookaburra’s uniqueness, including “high-grade” core at surface, an existing mining licence, and existing infrastructure and proximity to Port Lincoln.
CEO Jonathon Trewartha says the project is unique in Australia as it benefits from graphite at surface, requiring no pre-strip, thanks to an orebody which sticks out of the ground.
“As an experienced mining project developer, it is clear to me that with a mining lease already approved and developing such high-grades at the front end of the production schedule, means that Lincoln is likely to be able to generate attractive returns, even at low graphite prices,” Trewartha says.
“Our strategy to stage the development, and initially to focus on the high-grade at the Kookaburra Graphite Project, will allow us to progress to first ore potentially quicker than any other Australian project in Australia and enable Lincoln to deliver production-scale graphite concentrate for qualification in the EV markets while we plan the development of a larger project to feed the global demand for high-quality anode material.
“We look forward to the results of our PFS to support our plans for the Kookaburra Graphite Project to be first to market in Australia, which would make it the preeminent graphite project, and we expect the outcome to attract significant interest in the project.”
Lincoln Minerals is progressing all relevant project workstreams to deliver a staged development PFS for the project by the fourth quarter of this year.
The Kookaburra Graphite Project lies 35km north of Port Lincoln on South Australia’s Eyre Peninsula.
Lincoln Minerals is a graphite-focused company that is developing the Kookaburra Project which has measured, indicated, and inferred resources of 12.8 million tonnes at 7.6% total graphitic carbon.
Write to Aaliyah Rogan at Mining.com.au
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