July 2013 Updates to the TMR Advanced Graphite Projects Index

by Gareth Hatch on August 18, 2013 · 4 comments

in Graphite, Tools & Metrics

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I recently updated the TMR Advanced Graphite Projects Index, to reflect one updated and three new mineral-resource estimates which were announced in the past few months, plus other changes. Yes, it’s been a while since the last update – we’ll make sure to keep things updated more regularly from now on. The effective date of the updates is August 16, 2013. The specifics:

  • On April 10, 2013, Lamboo Resources Ltd. (ASX:LMB) announced a maiden JORC-compliant resource estimate for its McIntosh graphite project in Australia. According to the associated news release, 3.6 Mt of the resource is at the Indicated level @ 4.89% Cg, and 1.7 Mt is at the Inferred level @ 4.95% Cg (each at a 2.0% Cg cut-off grade).
  • On May 7, 2013, Northern Graphite Corp. (TSX.V:NGC, OTXQX:NGPHF) announced an updated NI 43-101-compliant resource estimate for its Bissett Creek graphite project in Canada. According to the associated news release, 69.8 Mt of the resource is at the Measured + Indicated level @ 1.74% Cg, and 24 Mt is at the Inferred level @ 1.65% Cg (each at a 1.02% Cg cut-off grade).
  • On May 27, 2013, Syrah Resources Ltd. (ASX:SYR) announced a maiden JORC-compliant resource estimate for its Balama East project in Mozambique. According to the associated press release, the project has a high-grade zone: for this Mepiche Zone, 157 Mt of the resource is at the Inferred level @ 15.1% Cg (at a cut-off grade of 12% Cg). The same press release included data for the Balama East deposit as a whole, which once the high-grade Mepiche Zone is accounted for, leaves an additional 422.2 Mt of the resource at the Inferred level @ 8.9% Cg (at a cut-off grade of 5%).
  • At some point since the last update, ownership of the Uley Main Road project in Australia was transferred from MEGA Graphite Inc. & Strategic Energy Resources Limited (ASX.SER), to Strategic Graphite Limited (formerly Tarcoola Gold Limited), in which Strategic Energy Resources has a 20% ownership stake.

You can access the updated details via the Index page.

The Index currently consists of 22 graphite mineral resources, associated with 19 advanced graphite projects15 different companies and located in 11 different regions within 7 different countries. Including the projects on the Index, TMR is currently monitoring a total of 258 graphite projects under development associated with 125 different companies in 25 different countries.

Disclosure: at the time of writing, Gareth Hatch holds no shares or stock options in any of the companies mentioned in this article, or in any publicly traded graphite company, nor is he doing paid consulting for any such company.

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1 Abner August 19, 2013 at 11:24 am

Interested in commentary on types of graphite and explanation for apparent premium accorded to Zenyatta Resources Albany graphite find.

2 Tim Ainsworth August 19, 2013 at 12:00 pm

Hi Gareth,

Just a little clarification re Uley. As part of the deal with Mega SER agreed to break out Uley into an unlisted subsidiary which would then have been merged into Mega in exchange for equity, once conditions were satisfied. After the demerger SER gave Mega two extensions to meet the terms of the deal which they failed to do and the agreement was cancelled Nov 12. Uley was never in Mega’s ownership despite their spruiking to the contrary.

So Uley now sits in the unlisted Strategic Graphite Limited, with SER holding 20% equity. As the remain 80% was distributed pro rata to SER SH’s the controlling interests are effectively the same.

One clause in the Mega agreement allowed them to process and sell stockpiled material from previous operation to recoup funds spent on refurbishment in the event of the deal not proceeding. There is no advice that this has occurred but it is potentially an overhang on further development.

To that end SG has continued to sponsor the research at Monash University:

http://www.strategicenergy.com.au/pdf/29-5-2013/20130529%20-%20Strategic%20Energy%20-%20Uley%20Graphite%20suitable%20for%20production%20of%20highly%20commercial%20graphene.pdf

Completed an engineering study:

http://www.strategicenergy.com.au/pdf/22-4-2013/20130422%20ASX%20Release%20-%20April%20Scoping%20Eng%20MM%20-%20ASX%20FINAL.pdf

We await further news but it still holds the potential to be a near term producer with modest CapEx.

3 Gareth Hatch August 19, 2013 at 12:11 pm

@Abner: we don’t keep a close eye on the Albany project because it has yet to have a completed NI 43-101-compliant mineral-resource estimate, though I believe they have started the work to do that. As you probably know, according to the folks at Zenyatta, the deposit contains vein graphite, which can command greater prices because of its high purity levels, when compared to flake graphite.

@Tim Ainsworth: thanks, as always, for the clarification :-) The SER folks, when I asked, mentioned the 20% that they owned, but omitted to mention that the rest was held by SER shareholders – good to know. Definitely a project we’ll be keeping an eye on, especially, as you said, because of the potentially low capex required.

4 Tim Ainsworth August 20, 2013 at 9:47 pm

Well “further news” wasn’t so far away, lol. Today’s Ann:

Strategic Graphite to restart operations at world class Uley Graphite project

Highlights:

  • Newly appointed & industry experienced CEO Christopher Darby to lead team
  • Plans are in place to re-commence operations at the Uley Graphite mine into early 2014
  • Patersons appointed as Corporate Adviser in relation to capital raising and ASX listing
  • New ASX listing for Strategic Graphite Limited planned by late 2013

Obviously with some confidence in future demand for the product together with the low CapEx they’ve decided to move without an international partner. Perhaps they’ve timed the right phase in the cycle?

Link: http://www.asx.com.au/asxpdf/20130821/pdf/42ht0prjy83zd0.pdf

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