EL5618, EL5495, EL5204 and ELA2015/107 (All Option to acquire 100%)
Eyre Peninsula, South Australia
Arno Graphite Project
The Arno Graphite Project consist of three granted exploration licences, ELs 5618, 5204 and 5496 and one application, ELA 2015/107, covering 1,372km2 in the Eyre Peninsula, a proven, graphite-producing region of South Australia located approximately 500km driving distance from Adelaide. (See Figure 1)
In March 2016, Renascor announced the maiden JORC Mineral Resource for its Siviour graphite deposit, the first prospect it has drilled in its Arno Graphite Project in South Australia’s Eyre Peninsula. Independent mining consultancy group Optiro Pty Ltd (Optiro) has estimated Indicated and Inferred Resources measuring 16.8Mt @ 7.4% total graphitic carbon (TGC) for 1,243,200t of contained graphite (reported above a cut-off grade of 3% TGC), including high-grade mineralisation of 5.9Mt @ 10.0% TGC for 590,000t of contained graphite (reported above a cut-off grade of 8% TGC). Siviour is presently the largest reported graphite Mineral Resource in Australia and remains open along-strike.
The Siviour deposit is shallow, tabular and near flat-lying, with most of the graphite mineralisation occurring beneath only 10m to 25m of surface cover. As shown in (See Figure 2), Section 631800E, the westernmost section drilled of the Indicated Resource, shows a thick, shallow graphite-mineralised zone that is near flat-lying over the southern and central portions of the prospect before dipping gently to the north.
In addition to the Indicated and Inferred Mineral Resources, Optiro has estimated an Exploration Target of an additional 12Mt to 15Mt at an average grade between 7.0% and 7.5% TGC, equating to between 840,000t to 1,125,000t of contained graphite. (See Figure 3). The potential quantity and grade of the Exploration Target is conceptual in nature and there is insufficient data to establish a mineral resource; it is uncertain if further exploration will result in the estimation of a mineral resource over the area covered by the Exploration Target.
In addition to the area included in the Exploration Target, Siviour remains largely open, in particular to the north of the Inferred Resource and to the south at Paxtons, suggesting additional scope to expand the current resource through follow-up drilling.
Siviour in Comparison to Other Graphite Resources in Australia
As shown in (Figure 4), the Siviour deposit is presently the largest reported JORC resource in Australia, with ample scope for expansion.
Graphite flake size and mineral processing test work
In addition to establishing Siviour as a premium graphite resource in terms of its size and grade, initial testing has identified an abundance of coarse flake graphite from petrographic analysis of drill samples. As previously reported, high-grade samples from drill holes at Siviour have returned over 80% in the high-value super-jumbo (+500mm), jumbo (+300mm) and large (+180mm) categoies.
While mineral processing test work has not yet been undertaken on the high-grade graphite zones at Siviour, ALS Metallurgy performed preliminary bench flotation and gravity tests over a core sample from the adjacent Paxtons prospect (See Figure 3), obtaining carbon (graphite) recovery of 87% and producing 93% purity of concentrates, with super-jumbo flake size of upto 600mm.