Volt Resources’ (ASX:VRC) graphite concentrate from the Namangale graphite project in Tanzania has been found to be highly suitable for producing valuable, commercial grade, expandable graphite.
The concentrate achieved high expansion volumes, making it suitable for use in flame retardant foam, graphite foil and other applications.
This is highly encouraging as regulatory changes are proposed in China and Europe for the mandatory use of non-toxic substances in flame retardant building materials.
Volt has the largest JORC graphite resource in Tanzania with 461 million tonnes grading 4.9% total graphitic content.
This test-work paves the way for potential substantial future demand for expandable graphite produced from Volt’s Namangale project.
Test-work details
The test-work was completed at a German laboratory which is a global specialist in graphite testing and analysis.
Having independent test work confirm the suitability of Volt’s graphite product in the flame retardant building materials market is a key differentiating feature from rivals.
The German laboratory test-work continues to demonstrate the quality of Volt’s graphite concentrate, having previously confirmed battery grade results of 99.99% total graphitic content.
Volt’s graphite concentrate product was found to be suitable for a variety of commercial applications, including spherical graphite for the lithium-ion battery sector.
The company is discussing with prospective customers across the globe from a range of end-user industries to facilitate product market diversification.
Namangale graphite project
Last month, the company completed a pre feasibly study which projected robust technical and financial viability of the Namangale project.
The project has an estimated a pre-tax net present value (NPV) of US$1.31 billion based on a 22-year mine life, with an 87% internal rate of return and pay-back period of only 1.4 years.
Last month, Volt’s board endorsed the recommendation to immediately progress Namangale and undertake a definitive feasibility study in 2017, paving the way for finalising off-take agreements and project finance.
The study will also target additional high quality large flake size graphite from Namangale South.
Analysis
This follow-up independent test-work confirms recent initial tests in the U.S. that found Volt’s concentrate to be high quality and able to be used in lithium-ion batteries.
Furthermore, it is encouraging to have independent confirmation that the graphite concentrate is highly suitable for expandable graphite too.
The sales and marketing team will be targeting prospective end-user customers globally across a range graphite end-user markets.
These independent test results will provide Volt with a significant differentiating feature and competitive edge to be able to deliver concentrate that can make high quality spherical and expandable graphite for various downstream applications.
Two of Volt’s board members recently purchased shares on market, showing their confidence in both the company and its high quality project.