International Graphite Ltd (ASX:IG6) is ramping up its feasibility study initiative at the Springdale Graphite Project in Western Australia, with drill rigs now mobilised to the site.
These activities are critical steps towards making a final investment decision for the planned graphite mine and concentrator.
Low-cost, long-term supplier
Previous studies have highlighted Springdale's potential as a low-cost, long-term graphite concentrate supplier for the burgeoning battery minerals market.
The company's onsite work will include geotechnical and hydrological drilling to assist in mine planning and permitting processes.
It will also gather essential metallurgical data necessary for the design of the concentrator plant.
Concurrently, negotiations are in progress to finalise the drawdown of a A$6.5 million grant from the Collie Just Transition Fund, awarded by the West Australian Government on April 20. This funding is expected to support development of the company’s downstream processing operations in Collie.
Also keeping the company busy is the interest it is garnering from global markets seeking new sources to fortify the battery minerals supply chain.
Meeting with commodities trader
International Graphite is set to host representatives from a major commodities trading house in Collie today, with discussions focusing on the procurement of its micronised, spheroidised graphite product.
Managing director and CEO Andrew Worland said: “We are technically de-risking Springdale so that we can advance the project as quickly as possible to an investment decision.
“Existing studies have shown that Springdale has the attributes to be a low-cost long-term supplier of graphite concentrate for the battery minerals markets.
“We want to maintain this strong competitive advantage by defining the lowest cost project we reasonably can.
“Based on the size of our existing defined mineral resource, and the untapped exploration potential of our leases, we know there is significant scope for expansion in the future.”