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Battery Minerals has hit “exceptionally” high-grade graphite near surface at its flagship Montepuez graphite project in Mozambique.

The stock (ASX:BAT) — which has traded between 2.4c and 11c over the past year — lifted itself off the canvas by 7.5 per cent to 2.9c by midday after the news.

Battery Minerals was knocked down heavily in June when Resource Capital Fund pulled the plug on a $US30 million funding facility for Montepuez.

However, the experts are predicting pricing and demand for graphite is set to steadily rise well into the 2020s, with the growth coming from graphite’s use in lithium-ion battery anodes and in fire-retardant building cladding.

The latest results, including 18 metres at 12 per cent total graphitic carbon (TGC) from 12 metres, will help underpin an upgrade to the resource at Montepuez, to be released this quarter.

Battery Minerals managing director David Flanagan said most of the holes returned intercepts greater than 4 metres at 10 per cent TGC or better.

The Battery Minerals (ASX:BAT) share price over the past year.
The Battery Minerals (ASX:BAT) share price over the past year.

“When you add this improved confidence to what is already a high-grade, low-cost project with construction well advanced and supported by offtake agreements, a granted mning licence and a port access allocation, it is clear that we are very well positioned to deliver an outstanding project,” he said.

Once in production, Battery Minerals expects to ramp up to over 100,000 tonnes per annum graphite flake concentrate from Montepuez by 2020.