Renascor’s Impressive Reserve Update: Siviour Hosts Largest Reported Graphite Reserve Outside of Africa

Summary

• Renascor’s Siviour Graphite Project is the largest reported total ore graphite reserve ex-Africa and the second largest reported proven reserve of graphite, globally, as confirmed by the updated mineral ore reserve estimate by Optima Consulting and Contracting Pty Ltd.
• The latest update continues critical progress of the development of Siviour Project, and including the battery anode material study results, confirms PSG production at amongst the lowest global cost sported by any graphite project.
• Upgraded ore reserve highlights the project’s unique potential to become a source of consistent, low-cost, high-quality graphite, thereby tapping increasing demand from lithium-ion battery anode manufacturers.
• Renascor plans on using the recent resource update for advancing the financing and offtake discussions for Siviour Project.

All praises to Australian mineral developer, Renascor Resources Limited (ASX:RNU) for steadfastly advancing towards noteworthy accomplishment in the terrain of South Australia. Adding another hue onto the rainbow, the Company has released an Updated Mineral Ore Reserve estimate for its 100% owned Siviour Graphite Project, which bolsters its efforts towards integrating Purified Spherical Graphite (PSG) processing with the project.

In the significant update, Renascor announced that the updated estimate confirms Siviour as the largest reported reserve of graphite outside of Africa and the second largest reported proven reserve of graphite in the world.

The results foster vital progress in Siviour’s development, incorporating the recently completed Battery Anode Material Study, confirming the project’s ability to produce PSG at amongst the lowest global cost of any graphite project.

Meanwhile, the recent independent purification tests undertaken by German graphite specialist ProGraphite GmbH have further advanced Siviour by validating the purification circuit, which relies on an environmentally friendly caustic roast method.

ALSO READ: Renascor Shining as Purification Tests Confirm Siviour Potential for Eco-Friendly, Low-Cost Battery-Grade PSG

Mineral Reserve Update

The upgraded JORC Ore Reserve estimate for the project includes:

• Proven Reserves of 15.8Mt at 8.4% total graphitic carbon (TGC) for 1.3Mt of contained graphite
• Probable Reserves of 35.8Mt at 6.9% TGC for 2.5Mt of contained graphite
• Total Reserves of 51.5Mt at 7.4% TGC for 3.8Mt of contained graphite

Commenting on the recent update, Managing Director David Christensen stated that the Upgraded Ore Reserve, including significant Proven Reserve, highlights Siviour’s unique potential “to become a source of consistent, low cost, high-quality graphite” for satisfying the swelling demand for lithium-ion battery anodes.

ALSO READ: Renascor Resources on Right Path to Become the World’s First PSG Producer Outside China

The upgrade in ore reserves augments further confidence on Siviour’s ability to consistently achieve the quality necessary for PSG production for efficient use by anode manufacturers. Mr Christensen indicated that the Company is advancing well on its objective to secure high-quality offtake commitments for supporting Siviour’s financing and development. At the same time, Renascor looks forward to utilising the recent ore reserve upgrade for supporting the efforts.

Lens Through Ore Reserve Summary

Independent mining consultancy Optima Consulting and Contracting Pty Ltd prepared the Siviour Ore Reserve, based on a mineral resource that was announced in April 2019. The Siviour Definitive Feasibility Study (DFS) has been used as the basis to estimate ore reserves for the project in accordance with the JORC Code 2012.

Material Assumptions

The Ore Reserves are as per key modifying factors, including analysis, cost estimates, designs, and schedules of a DFS, describing Siviour Graphite Project development over a 40-year mine life.

Classification Criteria

The Ore Reserves estimate includes Measured and Indicated Mineral Resources only, while the DFS also encompasses some Inferred Resources, which are mined incidentally with the Measured and Indicated Resources. Over the 26-year mining period, the material mined is classified within the Measured Resource category (25%), Indicated Resource category (58%) and Inferred Resources category (17%).

Mining method

Conventional truck and excavator mining were used as the mining method, with drill and blast for fresh, partially weathered rock and all ore. The thick flat-lying shallow nature of mineralisation is suited by the mining method, resulting in a low stripping ratio of ~1.9 over the mine life. Overall ore loss is ~2% and mining dilution is ~6%.

The drill core samples and the geotechnical rock strength analysis in the DFS supports the assumption for alluvium and weathered rock to be free dig with some minor ripping expected in weathered rock.

Processing method

The metallurgical process involves crushing, grinding, floating, regrinding and refloating. Acceptable grade and graphite recovery in final concentrate with no deleterious elements have been indicated by test work on composite samples and ore variability samples.

Quality parameters

For each Metcode (quality of ore), cut-off grades were estimated with a marginal cut-off grade applied for determining ore or waste. With the cut-off grade for ROM set at 7.3% TGC for all Metcodes, ore was classified as either low grade or run-of-mine.

Estimation methodology

Flake size and purity determines the price of graphite. The flake size ranges for the Siviour project are based on metallurgical test work for calculating recovered graphite amount by flake size range, allowing revenue calculation in USD over a basket price sourced from Benchmark Mineral Intelligence.

Material modifying factors

The Siviour Graphite Project is stationed within mining licenses, that are granted by the South Australian Department of Energy and Mining.

The Company is advancing background studies at and around the project site that are expected to show no significant environmental impacts.

So far, most acid rock drainage tests are non-acid forming. Renascor plans to place the waste rock from mining operations into the pit and in a combined tailings and waste rock facility. Besides, currently, three other graphite projects with approved mining leases are present in the region.

Way Forward

Renascor plans on advancing the Siviour development, with a focus on the integrated mine and battery anode material operation.

RNU stock was trading at AU$0.014 on 24 July 2020 (AEST 11:27 AM). The last three-month return of the stock was noted at 100%.