Kingsland (ASX:KNG) produces marketable graphite from Australia’s largest deposit

Kingsland (ASX:KNG) produces marketable graphite from Australia’s largest deposit

June 12, 2024 Off By Jack Baker

Kingsland Minerals has produced a fine flake commercial graphite concentrate from Leliyn and claimed a significant derisking of Australia’s largest graphite deposit recently established in the Northern Territory.

Initial metallurgy produced a concentrate exceeding 94 per cent total graphitic carbon, a marketable grade and a result strong enough that Kingsland has begun early discussions surrounding processing and offtake.

A high content in the rocks makes graphite geology relatively simple, but producing one of many potential saleable end products and finding a buyer remains the more difficult prospect.

Fine flake graphite is widely used in lubricants, refractories, foundry and battery materials, and Kingsland will now also investigate production of a lithium-ion intensive spherical product after the early success.

Kingsland see Leliyn in an ideal position to meet western demands, and Managing Director Richard Maddocks said that producing a marketable graphite concentrate was a significant de-risking milestone.

“Given these strong results we will now focus on two, linked, outcomes; the first is to produce cost efficient fine flake concentrate and transport this to Darwin, only 250 km away by road or rail,” he said.

“And the second is to secure markets for processed and raw fine flake graphite products and establishing a downstream processing facility in Darwin.

“Leliyn is Australia’s largest graphite deposit and, with metallurgical results producing a +94% TGC concentrate, it is well placed to play an important role in the supply of raw and processed graphite products.”

A maiden 194.6Mt @ 7.3% TGC inferred JORC resource took Leliyn over the Renascor Resources (ASX:RNU) Siviour deposit as Australia’s largest, and while size is not everything, Kingsland will start looking at further expansion.

The resource was based on around a quarter of the 20 kilometres of graphitic schist Kinsland uncovered at Leliyn shortly after its public listing, and the Perth-based explorer is set to release an updated exploration target this month.

A bulk concentrate product will now be produced for more test work over downstream processing options as Kingsland begins preliminary technical studies to evaluate base case production and economics.

Economics which could be elevated through recent Chinese export controls over a commodity which already had a limited number of global sources.

Read more: The journey to unveiling an unexpected graphite monster

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