IG6’s Springdale Graphite Project shines with fresh hits up to 25.6pc TGC

The results from the second of four new graphite discoveries at Springdale show the project is developing as an important deposit to support Australia’s evolving battery minerals industry.

International Graphite (ASX:IG6) has reeled in more impressive results from drilling at Springdale Central, the second of four new graphite discoveries made during the 2022 – 2023 drilling campaign.

Assays for 44 of 47 reverse circulation (RC) holes have returned stand-out results adjacent to the existing Springdale mineral resource, including 12m at 11.6% TGC from 51m, 3m at 25.6% TGC from 53m, 8m at 11.4% TGC from 57m and 3m at 22% TGC from 60m.

So far, around 3,700m of RC drilling at an average drill depth of ~84m has been completed, with Springdale Central remaining open in all directions.

‘A deposit of industry significance’

With Australia firm on becoming a critical minerals powerhouse, IG6 managing director and CEO Andrew Worland said it is fantastic that such a significant new find is adding to the impressive results already seen from Mason Bay.

“Over 10,000m of drilling has been completed at Central and Mason Bay alone and covers an area that is approximately half the size of the area of the existing Springdale JORC mineral resource,” he explained.

“Extensive areas of additional exploration targets remain untested at Mason Bay and elsewhere within the Springdale tenements and are earmarked for future exploration.

“Our successful exploration program in the past year is demonstrating Springdale is presenting the potential to host a deposit of industry significance.”

He said this is a key link in International Graphite’s strategy to build Western Australia’s first-mine-to-market supply of battery anode graphite.

What else has been happening?

In May, the company inked a $4.7m grant from the Australian government to fast-track its graphite development strategy, which involves the integration of the Springdale graphite project and the proposed Battery Anode Material facility in Collie.

The funding will be used to conduct feasibility studies for the mine at Springdale, and battery anode manufacturing plant, as well as construction of a planned graphite micronising facility also at Collie.

The company’s latest scoping study for the Battery Anode Material facility indicated it would be capable of processing up to 40,000tpa of graphite concentrates to produce coated spheroidised purified graphite (CSPG).

Notably, this would be capable of delivering “outstanding” economics with forecast pre-tax and pre-finance net present value and internal rate of return of roughly US$626m and about 41% respectively.

This article was developed in collaboration with International Graphite, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.