Syrah Resources’ Balama testwork produces 96%+ graphite concentrate
Syrah Resources (ASX: SYR) is upping the ante at its Balama graphite project in Mozambique with latest testwork demonstrating a concentrate grading over 96% could be produced using simple flotation.
This follows metallurgical testwork in September which showed that the magnetic vanadium bearing minerals can be concentrated to about 5% V2O5 by simple processing of the tailings from the graphite extraction process.
Metallurgical testing has commenced on converting Balama graphite to spherical graphite used in lithium ion batteries.
In
addition, further vanadium tests also demonstrated that non-magnetic
mineralisation – dominated by roscoelite – can be upgraded by 4-5 times
to achieve a V2O5 concentrate grade of about 2–2.5% V2O5.
These
tests also confirmed that magnetic separation can upgrade magnetic rich
mineralisation to produce a concentrate with a V2O5 grade of between 4%
and 5%.
Given that these recoveries are possible from the
tailings of the graphitic recovery process, vanadium recovery represents
an additional product to the planned operation with minimal additional
processing costs.
Testwork
Initial testwork on Balama
mineralisation had showed that a concentrate grade in excess of 97%C was
achieved with flotation recoveries of 87%.
A potential customer
then tested samples of Balama graphite mineralisation in its facilities
using simple flotation resulting in grades ranging from 96.16% to
98.62%.
Further large tonnages of outcropping mineralisation were
sent to the lab for the purposes of obtaining a bulk sample of graphite
product for marketing purposes.
This produced a concentrate grading 96.05% through simple flotation processes without the need for chemical washing.
No
vanadium is present in the graphite concentrate. In addition, no
uranium minerals have been identified by mineralogical work on Balama
graphite and no uranium has been detected in the graphite concentrate.
Samples have now been sent to many potential customers for them to test in their processes.
Testing
has also commenced on converting Balama graphite to spherical graphite
used in lithium ion batteries. The current selling price for uncoated
spherical graphite is approximately $3,500 per tonne.
Separately,
the company had in August reported that initial vanadium testwork
showed that it could be upgraded by over ten times using magnetic
separation.
This was highlighted by a bulk sample of Balama
Mualia mineralisation grading 0.46% V2O5 being upgraded to a V2O5
concentrate of 5.02% with recoveries of 75%.
All magnetic
vanadium minerals such as ferro-vanadium magnetite, limonite and
goethite were recovered with the remaining 25% of non-magnetic vanadium
minerals reported to the tails.
Further tests have confirmed the
magnetic separation results and has also resulted in the recovery of a
V2O5 concentrate grading 2–2.5% from the non-magnetic mineralisation.
Syrah believes that this grade can be further improved on with optimisation work.
Analysis
This is an impressive brace of testwork results logged at Balama,
that show a high grade concentrate could be produced using simple
flotation, which could result in substantially lower processing costs.
In
addition, the potential to recover vanadium from the graphite tailings
highlights the potential to boost cash flow at minimal additional cost.
Proactive
Investors continues to see further upside value in the company given
that its share price had quickly appreciated above our August 2013
target of between $2.40 and $2.50. It currently trades at $2.92.
The
next price catalyst for Syrah is the upgraded resource due in around
three weeks, and considering the impressive grade of the infill
drilling, is expected to upgrade the confidence category to Indicated at
the Ativa Zone area.
Following the upgrade, the next share price
driver will be the Feasibility Study to be delivered based on the new
resource and other additional data received over the past few months.
This is expected in around six weeks.
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