International Graphite’s plans for a fully integrated battery graphite operation in Western Australia took a leap forward today with the release of key findings from the Springdale-Collie Integrated Mine to Market Scoping Study.
The study positions the Company’s planned Springdale mine and Collie downstream processing facilities as a world leading development-stage graphite asset with:
- a globally competitive cost structure
- multi-decade operating life – ~15% of the existing Springdale Mineral Resource has been scheduled
- robust project economics with significant potential for expansion at both Springdale and Collie.
The study incorporates a preliminary investigation to assess the technical and economic viability of developing a graphite mining and concentrate production operation at the Springdale Graphite Project on the south coast of Western Australia. Concentrate would then be trucked to Collie for processing.
The study findings have also been used to update the scoping study for the Collie Battery Anode Material facility released in April 2023. That study made an outstanding investment case for the Collie BAM facility and has now been updated based on using concentrates produced at Springdale instead of imported graphite feedstock. The results form the basis of the new Springdale–Collie Integrated Mine to Market Scoping Study.
Managing Director and CEO Andrew Worland said the company was confident that Springdale would be a project of global significance for Australia in the critical battery minerals supply chain. Watch the video interview with Proactive Investor!
The latest Springdale Mineral Resource estimate, released in September 2023, provides a compelling argument for expanding future operations beyond the Springdale Scoping Study base case.
“We now have a clear economic and financial view of the breadth of the Springdale–Collie mine to market strategy. Springdale compares exceptionally well with its industry peers across a range of measures, particularly the forecast mine capital and operating costs,” he said.
“Less than 15% of the current Springdale Mineral Resource estimate has been scheduled and modelled so far and the production plan has yet to be optimised at this early stage of investigation.
“Our immediate focus is to move rapidly through the definitive feasibility phase for Springdale and to accelerate further infill resource and exploration drilling at Mason Bay, one of the newest graphite finds at Springdale, so we can continue expanding and upgrading the current Mineral Resource estimate.”
Key metrics in the study’s base case, for the first 15 years of operations, are:
- Springdale concentrator throughput 500,000tpa
- Feed grade average 9.5% Total Graphitic Content
- Springdale average concentrate production 45,000tpa
- Waste to ore ratio 4.3 to 1
- Springdale capital cost of mine and concentrator A$76M
- Springdale all in sustaining cash operating cost estimate US$485 per tonne of concentrate
- Average Uncoated Spherical Purified Graphite (USPG) production 20.0ktpa
- Average Coated Spherical Purified Graphite production (CSPG) 18.6ktpa
- Capital cost of Collie USPG plant A$124M
- Capital cost of Collie CSPG plant an additional A$217M
- USPG average all in sustaining cash operating cost estimate US$1603 per tonne of product
- CSPG average all in sustaining cash operating cost estimate US$2,699 per tonne of product
- Financials Integrated USPG Project NPV10 A$375M; IRR 35.8%
- Financials Integrated CSPG Project NPV10 A$603M; IRR 30.5%
- Extensive resource potential for significant project scale up from the base case