Announcement • Nov 27
Renascor Resources Limited Announces Positive Results from Advanced Downstream Mineral Processing Trials for its Planned Vertically Integrated Graphite Mine and Battery Anode Material Manufacturing Operation in South Australia (The Siviour Project)
Renascor Resources Limited (Renascor) announced positive results from advanced downstream mineral processing trials for Renascor's planned vertically integrated graphite mine and battery anode material manufacturing operation in South Australia (the Siviour Project). The ongoing testwork has demonstrated that: Commercial-scale milling of Siviour graphite concentrates can deliver yields (i.e., the amount of graphite concentrate converted into spherical graphite) in excess of 60%. This is well in excess of the 50% yield assumed for the Battery Anode Material Study). Locked-Cycle purification, designed to simulate continuous operating conditions using Renascor's eco-friendly purification process, can deliver PSG purity specification up to 99.99% Carbon (C) (versus anode industry standard of 99.95% C). The positive technical results come against a backdrop of increasing upward pressure on the price of Purified Spherical Graphite, with the price reporting group Fastmarkets recently reporting a 40% increase in the price of Purified Spherical Graphite over the last 12 months to between $3,100 and $3,300 per tonne. Renascor also continues to make good progress in relation to its Strategic Cooperation and Offtake MOU with POSCO. Confirmatory due diligence commissioned by POSCO is underway, with negotiations continuing on the commercial terms for strategic cooperation and offtake of between 20,000 to 30,000tpa of PSG from Renascor's planned Battery Anode Material operation in South Australia. The production of Purified Spherical Graphite requires that Graphite Concentrates are first mechanically shaped into a micronised spherical form before being purified for use in lithium-ion battery anodes. To prepare for engineering design works for its planned PSG manufacturing facility, Renascor recently commenced milling trials on commercial-scale milling equipment designed to micronise and spheronise Siviour Graphite Concentrates. A key objective of these mill trials is to maximise the amount of graphite that can be processed from Siviour Graphite Concentrates into a spherical form that meets the physical product specifications of Renascor's existing and potential additional offtake partners. Graphite Concentrates that meet these physical product specifications (including product size, particle size distribution, tap density and surface area), can be purified to battery-grade and sold as Purified Spherical Graphite. Achieving higher yields from the milling process results in the production of higher amounts of Purified Spherical Graphite and greater efficiencies and profitability. For purposes of the Battery Anode Material Study, completed in July 2020, Renascor relied upon preliminary equipment trials using up to 60kg samples of Siviour Graphite Concentrates and a projected yield of 50%, which is in line with global industry norms. The recent trials are being conducted on a larger-scale of up to 750kg of Siviour Graphite Concentrates per trial, using Siviour Graphite Concentrates produced from Renascor's recently completed large-scale pilot flotation program9. The milling trials have been designed to test the ability of selected milling equipment to meet the physical product specifications of both Renascor's existing and potential offtake partners. Results to date have included yields in excess of 60% of spherical graphite, consisting of both a primary spherical graphite that meets a standard size specification (d50 = 16 microns), as well as a finer spherical graphite product (d50 = 10 microns). In both cases, the physical product specifications have been achieved. The trials will continue through the current quarter, with the results to be incorporated into final equipment selection and engineering design works for Renascor's planned PSG manufacturing facility. Locked-cycle purification trials. Following the milling and micronisation process, Renascor's planned downstream operation will purify Siviour spheronised graphite through an eco-friendly purification process that avoids the use of hydrofluoric acid (HF), which is generally used in Chinese PSG operations. Instead, Renascor will use less environmentally harmful reagents to purify spheronised graphite to battery grade for use in lithium-ion battery anodes. Earlier this year, Renascor completed bench-scale optimisation purification trials with German battery mineral consultancy group Dorfner Analysenzentrum und Anlagenplanungsgesellschaft mbH (Dorfner ANZAPLAN). Dorfner ANZAPLAN is a leading consultancy and engineering company with particular experience in battery minerals. Dorfner ANZAPLAN's graphite expertise includes testing, developing, piloting and adapting mineral processing parameters to purify graphite concentrates to lithium-ion battery grade levels of +99.95% C. As part of these earlier trials, Renascor used sulfuric acid as the primary leaching reagent, rather than hydrochloric acid, which was adopted as part the Battery Anode Material Study. The earlier bench-scale trials consistently met or exceeded lithium-ion battery anode purity specifications, with results of up to 99.99% Carbon (C) (versus anode industry standard of 99.95% C). Further, these results were achieved with a decreased consumption of sulfuric acid, as compared to previous trials using hydrochloric acid. To enable detailed engineering works for its purification circuit, Renascor recently commenced locked cycle tests adopting the flowsheet parameters used in the recent trials. The locked cycle flotation tests differ from the previous bench scale tests by more closely approximating processing conditions by including recycle streams in a closed circuit and permitting a more accurate calculation of mass-water balance and other process design criteria necessary for competing detailed engineering design. The locked cycle tests are being undertaken by Dorfner ANZAPLAN, in collaboration with Renascor's external engineering advisors Wave International. Preliminary results from the locked cycle tests have confirmed that the optimised purification circuit can meet or exceed lithium-ion battery anode purity specifications, with results of up to 99.99% C. The trials are expected to be completed later this quarter, with the results to be used in for engineering design works for the purification circuit of the planned PSG manufacturing facility.