Westwater Resources Inc (NYSE-A:WWR) has announced the completion of the initial assessment for its Coosa graphite deposit in Alabama and filed its S-K 1300 Technical Report Summary on Form 8-K with the Securities and Exchange Commission, disclosing mineral resources for the deposit.
The company said the mineral resource estimate for the Coosa Deposit, based on 205 drill holes totaling 39,434 feet, was completed by SLR International Corporation (SLR) with an effective date of November 30, 2022.
“We are pleased to achieve another milestone in advancing our graphite business with the completion of a technical study on the graphite resource at the Coosa Deposit,” executive chairman Terence Cryan said in a statement.
“We believe the results of the technical study indicate that the Coosa Deposit is capable of supplying graphite concentrate to our Kellyton Graphite Processing Plant, and we continue to believe that the vertical integration of the Coosa Deposit and our Kellyton Graphite Processing Plant will create future shareholder value,” he added.
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The Coosa Deposit is located at the southern end of the Appalachian Mountain range in the western part of Coosa County, Alabama. The deposit area is approximately 50 miles south-southeast of the city of Birmingham and 23 miles south-southwest of the town of Sylacauga.
Westwater holds the mineral rights to approximately 41,965 acres under a long-term lease. The Coosa Deposit is located in the flake graphite belt of central Alabama, also known as the Alabama Graphite Belt.
The company said that based on a 1.98% graphitic carbon (Cg) cut-off grade, indicated mineral resources total 26 million short tons (Mst) at an average grade of 2.89% Cg for a total of 754,000 short tons (st) Cg. Inferred mineral resources are estimated as 97 Mst at an average grade of 3.08% Cg for a total of 3 Mst Cg.
“The results of the Westwater drilling program completed earlier this year show the potential for enhanced graphite carbon grades at the northern extension, HS-South, and the Fixico Mine areas of the Coosa Deposit,” said Cevat Er, Westwater’s chief technical officer.
“The Qualified Person recommends additional in-fill drilling that we expect, upon completion and evaluation, will convert a majority of inferred graphite resources in the oxidized zone to indicated resources, and could identify expansion opportunities. Westwater will be considering those and other recommendations as plans are developed to continue progressing the Coosa Deposit to production by the end of 2028.”
Westwater Resources is an energy technology and battery-grade natural graphite development company, focused on developing battery-grade natural graphite. Westwater’s primary project is the Kellyton Graphite Plant that is under construction in east-central Alabama. In addition, Westwater’s Coosa Graphite Deposit is the most advanced natural flake graphite deposit in the contiguous US and located across 41,965 acres in Coosa County, Alabama.
Contact the author at stephen.gunnion@proactiveinvestors.com