Sarytogan Graphite Ltd (ASX:SGA) is kicking off pre-feasibility studies at its namesake graphite deposit in Central Kazakhstan after a resource upgrade saw more than half of the company's mineral resource elevated to the indicated classification, which will be a major input in the study.
The indicated classification of 126 million tonnes at 28.8 total graphitic carbon (TGC) for 36 million tonnes of contained graphite is a recognition of the progress made on de-risking the modifying factors including metallurgy and marketing.
During the upgrade, Sarytogan calculated a 10% increase in contained graphite to 229 million tonnes at 28.9 TGC for 66 million tonnes, affirming the project’s multi-generational potential.
The indicated mineral resource is the first step towards a major input into the pre-feasibility study that Sarytogan is now commencing.
Markets have welcomed the news with shares trading as high as $0.405 on the ASX, up 12.5% from the previous close.
“Giant” status
Sarytogan managing director Sean Gregory said: “The Sarytogan Graphite Project’s status as a giant and exceptionally high-grade graphite mineral resource has been confirmed with this upgrade.
“The achievement of the indicated classification is highly significant as it is a recognition of the progress made in de-risking the modifying factors including the metallurgy and marketing.
“The MRE is a major input and the first step in our pre-feasibility study now commencing.”
Sarytogan graphite deposit mineral resource.
Forward plan
Sarytogan has initiated bulk-scale test work at German laboratories to deliver larger flotation concentrates in the June quarter.
In addition, spheroidisation will happen in the September quarter and battery performance tests in the December quarter.
Furthermore, a tender is in the market to appoint an appropriately qualified and experienced global engineering house for the pre-feasibility study.