Peninsula Mines Ltd (ASX:PSM) has received high-purity graphite concentrate results which confirm the potential of the high-grade Gapyeong graphite deposit in South Korea.
Initial metallurgical testing of a high-grade bulk composite produced high-purity concentrate results of 95.4% total graphitic carbon (TGC).
Tests were carried out on a composite Gapyeong sample of greater than 80 kilograms that produced a high-grade confirmatory bulk composite assay of 17.7% TGC.
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Managing director Jon Dugdale said: “These high-purity metallurgical results, from the large and high-grade Gapyeong graphitic unit, pave the way for further spherical graphite testing.
“They will also lead to a resource drilling and channel sampling program to define a substantial resource for potential development.”
Gapyeong is 50 kilometres northeast of the capital Seoul in the country's north.
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Peninsula is pursuing an integrated graphite strategy to add maximum value to its graphite resources to serve South Korea’s large and growing lithium-ion battery industry.
It has identified the opportunity to mine and process graphite to produce spherical graphite in-country, to directly supply Korea’s battery manufacturers and other graphite end-users.
The high-purity metallurgical concentrate result has been obtained by Independent Metallurgical Operations Pty Ltd (IMO) from initial batch grinding and flotation testing.
Next steps
The next step at Gapyeong is to generate a larger concentrate sample for spherical graphite testing.
Other near-term steps, following finalisation of access agreements, are channel sampling and resource drilling to potentially define a large, high-grade graphite resource.
Previous rock chip and channel sampling of the deposit indicates an average grade in excess of 16% TGC over a strike length of about 1 kilometre and widths of up to 10 metres.
Peninsula intends to confirm this by systematic channel sampling to begin once surface access agreements are in place.
Electromagnetics indicates continuity of the thick and high-grade graphitic unit to at least 500 metres depth, indicating significant resource tonnage potential that will be estimated following completion of channel sampling.
Spherical graphite testing
IMO has been commissioned to process the Gapyeong bulk composite to produce a high-purity flake-graphite concentrate sample of at least 5 kilograms for spherical graphite testing.
Gapyeong rock chip and metallurgical sample locations, graphitic unit and EM anomalies.
This sample will then be subjected to a testing program designed to generate greater than 99.95% TGC purity, uncoated, spherical graphite suitable for offtakers producing lithium-ion battery anodes in South Korea.
Increased value
Production of spherical graphite is a value-added process that increases the potential value of the graphite product.
The market price for fine flake graphite concentrate is $1,000 per tonne while the price for un-coated, purified spherical graphite is at least $4,000 per tonne.
The company expects to be granted the key Gapyeong 125-3 tenement in the near future.
In this regard, it is in advanced discussions with private landholders in the area while final tenement inspections have been conducted by the Mines Registration Office.