Black Rock Mining Ltd (ASX:BKT) has achieved more 99% purity metallurgical test results as part of the ongoing process optimisation program at the Mahenge graphite project in Tanzania.
Results come from samples taken from Ulanzi and Epanko North within the Mahenge graphite project, which build on the 99.1% purity achieved from the recent Ulanzi bulk sample.
The key outcome from this test is that 99% purities can be achieved from both oxide and fresh portions of Ulanzi and Epanko North.
Black Rock has achieved these high purity results using a conventional flotation circuit, allowing for potential demand for a product used to manufacture spherical graphite without the cost and environmental impact of chemical purification.
Steven Tambanis, managing director, said:
“Achieving >99% purities for both oxide and primary zones at Ulanzi and Epanko north underpins the potential for the Mahenge Project to deliver superior graphite products to market, in particular the fast growing lithium ion battery market.
“We look forward to applying our processing improvements to new bulk-scale metallurgical samples expected from site this month.
“Significantly, this provides potential for Black Rock Mining to brand and market spherical graphite product as being processed without chemical purification.”
New metallurgical samples
The metallurgical program will continue for the next four to six months, in parallel with the current pre-feasibility and proposed definitive feasibility studies.
New metallurgical samples are being prepared this month to test additional portions of the Ulanzi and Cascade lodes.
Two more bulk surface samples and numerous drill core samples from Ulanzi and Cascade are being prepared for shipping and will be processed with the amended process circuit.
In order to produce in excess of 1 tonne of high purity flake concentrate, a continuous pilot scale process is being evaluated to finalise the processing circuit design.
Spherical graphite program
Spherical graphite test work is underway in Europe to determine the suitability of Mahenge graphite for battery applications with results expected in late July.
A separate spherical graphite characterisation program is being undertaken with a new batch of 99% concentrates in response to achieving high flake graphite purities from the recent test work.
Analysis
Continuous optimisation of the metallurgical test work program being conducted at Mahenge has returned valuable flake size distribution and concentrate assay results.
Results continue to suggest the flake graphite is able to be easily processed into a high purity concentrate for sale into premium grade markets.
On-going improvement in graphite concentrate grades is expected as testing of the Ulanzi and Cascade mineralisation ramps up.
The share price is up 45% over the past 3 months, higher than any close price in 2016.
Recently, Perth broker Patersons initiated coverage with a valuation of $0.12 per share and Speculative Buy rating.
The scoping study released in March 2016 forecast the project to have a net present value of US$285.7 million and an internal rate of return of 62%.
Results from the spherical graphite test program in Europe are expected in late July.
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