South Australian graphite stock Renascor Resources [ASX:RNU] released drilling assay results showing its ‘highest grade graphite to date’.
RNU shares were up 6% in late afternoon trade on Wednesday.
While the graphite stock is up a substantial 135% in the past 12 months, the RNU stock has retraced in the past months, up a more modest 10% year-to-date:
Source: TradingView.com
Renascor’s Siviour drilling update
Renascor provided an update on its latest Siviour drill assay results, declaring them ‘among thickest and highest-grade graphite to date’.
RNU reported that these results indicate further support for its wholly-owned Siviour Resource expansion, improving its mining schedule for its Battery Anode Material (BAM) study.
Renascor said that Siviour is deemed the second-largest global graphite reserve, the largest outside of Africa.
Siviour has a mine life of 40 years, and potential to churn of 150,000 tonnes graphite concentrate for each of those 40 years.
The Siviour Graphite Deposit presented drilling assay results of:
- ‘45 metres at 9.4% Total Graphitic Carbon (TGC) from 23 metres and 10 metres at 6.6% TGC from 8 metres (SIVRC264),
- ‘25 metres at 13.7% TGC from 17 metres (SIVRC266),
- ‘20 metres at 7.5% TGC from 7 metres (SIVRC267), and,
- ‘17 metres at 7.6% TGC from 48 metres (SIVRC273).’
Renascor said intercepts were found near the surface, west of its existing Siviour inferred resource.
The company believes this suggests ‘strong potential to both improve the mine schedule and increase the scale and confidence level of the Siviour Resource’.
These recent results will be used in a re-calculation of the Mineral Resource Estimate for the quarter, revising the pit design, providing fodder for an update to the mining schedule, and strengthen the company’s BAM study.
Renascor Managing Director David Christensen commented:
‘These results include near-surface intersections of some of the thickest and highest-grade graphite drilled to date, underscoring Siviour’s global significance and advantages in both scale and geometry.
‘We expect these results to support both an improved and accelerated mining schedule, as well as an expansion to the Siviour Resource to meet the increasing demand for Purified Spherical Graphite for lithium-ion battery anodes.’
Source: Renascor
Don’t forget graphite
While graphite remains a critical component in battery technology, it’s lithium that has hogged the limelight.
Yet lithium isn’t the sole input in EVs.
For the EV revolution to go ahead, the world will need plenty of lithium but also copper, nickel, cobalt, and of course, graphite.
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But according to Money Morning’s latest report, there’s a smarter way to play the rise of lithium in 2022.
It involves what you might call lithium’s ‘little brother’.
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Regards,
Kiryll Prakapenka,
For Money Morning
