BlackEarth Minerals (ASX: BEM) boasts of a flurry of developments during September 2020 Quarter

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BlackEarth Minerals (ASX: BEM) boasts of a flurry of developments during September 2020 Quarter

 BlackEarth Minerals (ASX: BEM) boasts of a flurry of developments during September 2020 Quarter

Summary

  • BlackEarth Minerals NL has unveiled its September 2020 Quarter Report, indicating robust advancement at its quality graphite project portfolio in Western Australia and Madagascar. 
  • BlackEarth Minerals has formulated a drilling program for further understanding the high-grade graphite potential, situated NW of the Razafy Resource. 
  • Bulk material from the Southern Madagascar-based Maniry Project is currently held at a pilot plant facility, with the second stage of test work expected to commence shortly by BGRIMM. 
  • The Company in October 2020 completed the first phase of the assessment of its Donnelly River Ni-Cu-PGE Project. 

Continuing its climb up the ladder of success, BlackEarth Minerals NL (ASX: BEM) has been engaged in some exciting exploration endeavours, churning out impressive developments backed by quality graphite assets. The Company recently reported significant activities undertaken during the Quarter ended 30 September 2020, signaling considerable progress of its solid project pipeline in both Western Australia and Madagascar. 

Committed to leveraging the high-growth potential of flake graphite, the company is planning a drilling program at the high grade Razafy NW area. Graphite finds its application in the booming markets of lithium-ion batteries and fire-retardant materials. 

Meanwhile, the executives of BlackEarth held discussions with several organisations concerning the development of down-stream processing activities. The Company’s involvement in the escalating down-stream processing market is a priority as the global demand for battery and other products continues to grow.

ALSO READ: BlackEarth Minerals (ASX:BEM) Advancing Well Backed by Highly Prospective Assets

Let us look at some key events undertaken by the Company in Q3 2020. 

Northwest Razafy Exploration

BlackEarth Minerals has charted out a drilling program for further understanding the high-grade graphite potential, located NW of the Razafy Resource. 

Notably, the Razafy NW high-grade discovery, which is directly along strike from the Razafy Mineral Resource is part of the Razafy Domain. The known mineralisation within the ‘Razafy Domain’ has extended to >5km in length with the new discovery. 

The Company intends to confirm the start of the drill program soon.

(Image Source: ©️ Kalkine Group 2020, Data Source: BEM ASX Update, 30 October 2020)

 

Stage 2 Testwork - Bulk Material Arrives at BGRIMM

Bulk material from the Southern Madagascar-based Maniry Project is currently held at a pilot plant facility. The Company plans to commence the second stage of the test work schedule shortly.  

The stage 2 testwork would be undertaken by BGRIMM and would involve a large-scale pilot test program utilising up to 60 tonnes of graphite bearing materials from Maniry. The stage would facilitate the optimisation of the Maniry flow sheet, providing final equipment specifications and producing sufficient material to finalise legally binding offtake arrangements.

ALSO READ: BlackEarth Minerals’ Maniry Graphite Bulk Material Sent to BGRIMM; Razafy NW Area Drilling Likely in 2H20

The outcomes from the second stage of the test work program will also offer substantial input into the final Environmental and Social Impact Assessment (ESIA) of the project. It will also provide the final process design criteria (PDC) to BFS engineers for undertaking final engineering design works in 2H 2020.

ALSO READ: BGRIMM Stage 1 Study: Another Milestone Towards Advancing BlackEarth Minerals’ Maniry DFS

Western Australia tenements – Donnelly River

BlackEarth Minerals, subsequent to the Quarter-end, also announced the completion of the first phase of the assessment of its Donnelly River Ni-Cu-PGE Project. 

Source: BEM ASX Update, 30 October 2020

The Company reported:

  • Identification of 13 first-order targets within the Project area via the use of available data in preliminary targeting
  • Targets include an elevated nickel area centrally situated within the project area. The Company intends to investigate it as a priority. 

The Donnelly River Project is stationed directly adjoining the Thor and Odin Ni-Cu-PGM Prospects, which Chalice Gold Mines and Venture Minerals recently identified at their South West JV.

READ MORE: BlackEarth Minerals (ASX: BEM) reveals significant update on Donnelly River Project

BEM has appointed Geophysical Consultants to undertake historical geophysical surveys processing as well as designing and costing an initial airborne electromagnetic survey which covers E70/4825.

BlackEarth’s Geochemical Consultants are currently assessing the available reconnaissance geochemical sampling, previously completed across the project area. The follow-up programs aimed at the newly identified targets would be based on the ongoing assessment. 

(Image Source: ©️ Kalkine Group 2020, Data Source: BEM ASX Update, 30 October 2020)

BlackEarth’s Corporate Advancements

The signing of the binding offtake agreement

The Company during the September Quarter entered a binding Memorandum of Understanding (MOU) with RHI Magnesita, which is the world’s largest refractory group. 

Under the agreement, BEM would work with RHIM to further investigate possibilities for producing “tailor-made” natural graphite concentrate samples and products for RHIM.

RHIM will also test and evaluate BlackEarth’s samples in different sizes and at various stages and would provide feedback as well as technical advice further to optimise “tailor-made” products of the BEM.

Capital Raising

The Company successfully raised A$1.4m with the completion of the Placement, which was oversubscribed by over 50%. The Company also confirmed the release of a Share Purchase Plan offered to all existing shareholders. The SPP would remain open until 6 November 2020. 

(Image Source: ©️ Kalkine Group 2020, Data Source: BEM ASX Update, 30 October 2020)

 

Appointment of Experienced Graphite Executive

BlackEarth in July 2020 onboarded Mr David Round as its Chief Financial Officer and Company Secretary. Mr Round has worked as the Head of Finance, Sales & Marketing at Bass metals Ltd, which is an Australian graphite producer.

In his role at Bass, some of the critical undertakings of Mr Round include:

  • Leading the team that acquired Madagascar-based Graphmada Mine
  • Working with the executive team for managing operations
  • Lead a large and experienced finance department 
  • Significant involvement in critically developing sales, marketing, and logistics networks for Graphite supply to the USA, India, throughout Europe and China.

BEM shares traded at $0.048 on 4 November 2020 (at 1:18 PM AEDT). The share price has been on a momentum with over 1.2x returns delivered in the past three months.

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