Kingsland (ASX:KNG) unfurls Australia’s largest graphite resource in Top End

Kingsland Minerals has released a maiden 194.6 million tonne resource at 7.3 per cent total graphitic carbon for 14.2 million tonnes of contained graphite at Leliyn project in the fertile grounds of Australia’s Northern Territory.

The inferred mineral resource estimate places Leliyn as the largest deposit of its kind in the island nation.

The continued return of world-class intersections built the allure of a potential world-class asset for the company since its first discovery at Leliyn, a status it now puts to pen with release of its initial JORC estimate.

Crucial metallurgy work and confidence upgrades will be next on the agenda, alongside exploring the remaining 16 kilometres of the 20km outcropping graphitic schist lying at Leliyn.

Kingsland Managing Director Richard Maddocks said the company was very pleased with having delivered one of the world’s largest graphite deposits in less than a year.

“The demand for graphite is only going to increase and Kingsland is very well placed to develop Leliyn into a globally significant graphite project,” Maddocks said.

“The initial metallurgical test-work is progressing and this, along with the MRE, are important initial steps in developing Leliyn into an important critical minerals project in the Northern Territory.”

Infill drilling to improve confidence in the deposit’s geological continuity, and metallurgy work is now slated to begin in the June quarter of 2024.

Initial test work indicated a highly favourable flake size for lithium-ion batteries at Leliyn, and the heady levels of gallium discovered within could provide a valuable by-product from mining operations.

The Leliyn estimate is Kingsland’s second resource since listing on the Australian Securities Exchange, and the Perth-based explorer is undertaking a strategic review of its 6.8Mt at 345 parts per million uranium resource in place at its Cleo project in the Territory.

And there is also a large high-grading lithium soil anomaly for Kingsland to investigate at newly acquired ground at the popular Lake Johnston lithium district in Western Australia.

But, for now at least, the real prize is graphite, under a worldwide critical commodity spotlight and a United States price hike, amid Chinese supply constraints and a continued uplift in demand from downstream industry.

Chinese export controls for graphite came in as the sun set on 2023, as part of an intensifying trade war between the world’s largest producer and the US.

The controls were a boost for western graphite asset holders, and saw in a price surge for Australian-listed graphite stocks.

Critical minerals industry policy puts the onus on US industry to seek raw materials from friendly shores, and while making a mine takes time, Kingsland has certainly taken a leap towards local production Down Under.

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