Oar Resources Ltd (ASX:OAR) is in possession of the results of preliminary metallurgical test work done on historical drill core from the company’s 100%-owned Oakdale Graphite Project on the Eyre Peninsula, South Australia, close to multiple active graphite projects.
The ongoing test work has revealed ultra-fine flake graphite, which is in demand and seeing price growth due to its suitability for production of spherical graphite, used in the rapidly growing global battery manufacturing industry.
Global demand for fine-sized graphite
OAR is targeting this opportunity to kick-start work on the project with a renewed focus on fine-sized graphite.
Spherical graphite, also known as battery-grade graphite, is consumed as an anode in lithium-ion batteries. It is manufactured by processing high-grade flake graphite concentrate to an ultra-high purity product of more than 99.95% carbon content. The resulting particle sizes need to be in the range of 10 to 25 microns for use as a battery anode material.
OAR’s initial early-stage sighter test work has achieved encouraging total graphitic carbon (TGC) grades of 89.1% total TGC, with further flowsheet optimisation test work aimed at increasing the TGC grade to more than 95% TGC where it is suitable for refining into battery anode material (BAM).
There was a significant portion (up to 58.9%) of ultrafine material, at less than 20 microns, in the sighter test work beneficiated concentrate, and the company believes that further test work can increase the final concentrate grade to greater than 95% to ensure it is suitable for refining into BAM.
Expanding the mineral resource
Permits are in place for an extensive 5,000-metre aircore drill program, designed to expand the existing mineral resource estimate (MRE) and provide fresh samples for ongoing test work.
Previous test work carried out on the primary and oxide ores at Oakdale was undertaken on the premise of identifying the coarsest possible grind, which historically attracted higher prices.
According to Benchmark Mineral Intelligence, prices for fine flake graphite increased 44.5% from US$500/ton in January 2021 to $723/ton in May 2022.
The research group predicts a 650% increase in demand for natural graphite between 2022 and 2035 to cater for the ongoing growth in the global EV market.
Next steps
The company sees the path towards confirming the potential of graphite from the project for use as BAM as follows:
- conduct beneficiation flowsheet development test work aimed at generating a >95% TGC final concentrate;
- generate a bulk beneficiation concentrate (greater than 5 kilograms) for downstream test work;
- conduct downstream spheroinisation and refinery test work, preferably using non-hydrofluoric acid methods, to generate a final concentrate grade of greater than 99.95% TGC;
- conduct electrochemical test work to confirm the final refined concentrate is suitable as BAM; and
- conduct further work required to generate information for a study (scoping or pre-feasibility) followed by engaging suitable service providers to generate the study.
“This is a great opportunity to pivot the focus of this project as OAR pursues its strategy of becoming a battery minerals exploration and development company," chief executive officer Paul Stephen said.
“The company has already established that the oxidised soft graphitic clays within the existing resource may be amenable to being cheaply and readily mined within a shallow open pit without drilling and blasting.
“We are excited to commence an additional infill and extension drill campaign with a view to developing a low-cost operation focused on the growing spherical graphite market.”