Sydney, Australia (ABN Newswire) – New Energy Minerals Limited (ASX:NXE) (FRA:GGY) (OTCMKTS:MTTGF) is pleased to provide an update to the market in relation to the Company’s activities for the period ending 31 December 2020.
See our exclusive index of companies on the move:Explore Stocks
Magnis Energy Technologies Ltd (“Magnis” or the “Company”) (ASX:MNS) is pleased to present its Quarterly Activities Report for the period ended 31 March 2019.
• New York Battery Plant – Debt Term Sheet for US$52M
• Townsville Battery Plant – Project Feasibility Study Update
• Nachu Graphite Project Update
• Interest and discussions on first battery plant for India
The major activities announced during the past quarter are summarised in this report.
New York Battery Plant Funding
The Company announced to the ASX on 18 March 2019, that Imperium3 New York (“iM3NY”) had signed a Term Sheet for US$52 Million in funding, via a pre-issued European bond used to fund renewable energy projects.
After an eight-week due diligence process on iM3NY, a term sheet was issued and signed. The debt financing consists of two stages, the first payment of US$30,000,000 on completion of final documentation and checks by both parties, with the remaining amount to be issued 12 months after the first payment with no milestone attached. Loan documents were recently received and reviewed by lawyers representing iM3NY with comments regarding the document sent to the lender and the Company will provide more information as it becomes available. In addition to the Term Sheet signed, iM3NY has received interest regarding debt and equity financing options with due diligence processes in the final stages.
Magnis has a current indirect and direct shareholding of 47% in iM3NY. Near-term production is the main goal and the board of iM3NY will be assessing all funding proposals with a strong preference given to the option allowing early production.
The former Alevo battery plant purchased in the first half of 2018, with a replacement value in the order of US$200 million, was disassembled and transported to Endicott, New York in the second half of 2018. Since that time, there has been significant planning effort towards the re-engineering of the plant to a capacity of over 1GWh annually using C4Vs (Magnis’ battery partner), patented BM-LMP chemistry. Qualification of materials and component inputs for battery manufacture has also been performed in parallel involving over 40 different potential suppliers to the plant. Current schedule aims to have battery production starting within 12 months of funding closure with offtake contracts in place for the majority of the first 3 years of planned production. The C4V product design team has been building battery cells with retrofitted processes to the existing machine design making improvements wherever necessary while continuously delivering cells and packs to already contracted customers for market qualification. In addition to the floor plan, additional machine design (such as an automated electrolyte dispensing machine) and process improvement is on-going to accelerate the production process.
Townsville Project Feasibility Study Update
Imperium3 Townsville (“iM3TSV”) has made major progress on the feasibility study it is undertaking for a 15 GWh lithium-ion cell manufacturing facility in Townsville, Queensland. Magnis has a one third ownership in iM3TSV. The initial findings support the rapid development in both the business case and technical solution for this project.
The study to date confirms the suitability of Townsville as a large-scale manufacturing region due to:
• Market proximity to rapidly growing Asian economies where electrification of transport and renewable energy are emerging as disruptors in global markets;
• Logistics with easy access to Townsville Port and local availability of battery materials and precursors such as lithium and manganese;
• The right people to execute with a supportive government and project team with unrivalled expertise in lithium-ion battery (LIB) innovation, business development and project delivery;
• Townsville’s plans to be a leading city of the future with an ambition to become the centre of high technology manufacturing with an emphasis on sustainability.
Figure 1: GHD developed LIB Manufacturing Plant Aerial View
The business case for the 15 GWh LIB manufacturing facility at Townsville continues to positively evolve across the following key areas:
• Strong Battery Market Fundamentals. Electrification of mobility and the transition to renewables continued unabated in 2018. Global growth in electric vehicle sales was over 50% above that for 2017 with 2019 forecast to deliver even greater growth as automotive manufacturers broaden their EV offering across their fleet;
• Growing Government Support. The average cost of energy generated by renewable solar and wind projects fell below the average cost of existing alternatives in 20181. This has encouraged public support for climate action in many jurisdictions around the world through lower power prices, new policies incentivising electromobility, renewables and LIB storage;
• Local Business Engagement. iM3 TSV is also investigating and identifying future participation of local businesses in both the construction and operating phases of the project. iM3’s scoping study established local content opportunities to be in the order of A$300 million across a range of items including labour, power, fuel, security and logistics;
• Global Partnering. iM3 TSV is continuing to establish global partnerships with component suppliers, industry specialists and tertiary education organisations (international and national). Testing and qualification of battery input materials involving over 30 well known global suppliers has occurred over the past 12 months in iM3’s facility located in upstate New York;
• Downstream Co-Location Opportunities. Opportunities representing an additional potential economic gain to the local economy in the order of US$750M to US$1.5B annually; and
• Cost Competitiveness. iM3 is engaging with each level of government to seek to create supportive policy, targeted incentivisation and collaboration for future R&D initiatives.
The economic and strategic benefits of the project include
• Creating approximately 750 jobs in a high technology manufacture;
• Promoting sustainable industries in North Australia;
• Supporting Townsville through the current local economic downturn;
• Realising higher value from Australia’s resource endowment; and
• Transitioning Australia to low carbon economy and associated industries.
Figure 2: View of Townsville LIB Office
Creating Australia’s first Giga-scale LIB manufacturing facility has required bringing together the technical expertise of global equipment vendors with local engineering specialists. Ausenco, which is based in Brisbane, is overseeing process development and the GHD office in Townsville is overseeing site development and building design.
Dr. Ulrich Bez resigned from the Board of Directors effective 28 February 2019.
The Company announced on 5 March 2019 that Mr Leslie Hosking joined the Board as a Non-Executive Director
Les has a long and distinguished career which spans over four decades in Australian business with a strong focus in the energy and the global futures industries. Currently, he is serving as an Independent Non-Executive Director of AGL Energy Limited (ASX: AGL) and is an Adjunct Professor of the University of Sydney John Grill Centre for Project Leadership. Previously Les was the Chief Executive Officer and Managing Director of the Sydney Futures Exchange, Chairman of Adelaide Brighton Limited (ASX: ABC), Chief Executive Officer of Axiss
Australia an Australian Government inward investment agency used to promote Australia as a global financial service and a Director at the Australian Government’s Industry Research and Development Board.
In the domestic energy industry, Les has served as the Chief Executive Officer and Managing Director at National Electricity Market Management Company (NEMMCO), Director of the Australian Energy Market Operator (AEMO), The Carbon Market Institute Limited and Innovation Australia Pty Ltd.
Nachu Graphite Project Update
The Compensation Program resulting from the Land and Asset Valuation that Magnis subsidiary, Uranex Tanzania Ltd (“Uranex”) undertook, was completed for all Project Affected Persons (PAP) within the Nachu Graphite Special Mining Licence (SML) in accordance with the laws and guidelines of Tanzania, guiding valuation of assets for compensation and resettlement programs.
The main valuation process was approved by the Chief Valuer (CV) in December 2016, and a signing of the Supplementary Valuation Report by the CV occurred in July 2018 concluding legal occupancy of the SML land by Uranex in accordance with the Act Supplementary No.11 dated 23rd March 2018: The Valuation and Valuers (General) Regulations, 2018. Within the SML, 785 PAP were identified in total for the Valuation and Resettlement Program.
By 21 January 2017, a total of 720 PAP were paid a sum of TZS 6.7 Billion (~AUD 4.064 million). During November 2018 land payments to the remaining PAP accounted for a sum of TZS 643 Million (~AUD 386 thousand) making a cumulative total of TZS 7.4 Billion (~AUD 4.5 million) for paid compensation for land and assets as per the approved Valuation Report.
In conjunction with clear access to the ground and to allow unrestricted ground clearance where required, the grave sites identified during the valuation have also been compensated for and relocated. The grave relocation program is 100% complete with grave payments totalling a sum of TZS 45.3 Million (~AUD 27 thousand) and all graves were relocated to local demarcated village grave yards. The successful completion of removal of graves in the SML concession, allows commencement of initial ground disturbing project development activities
such as vegetation clearance and improving access.
In a media conference held in Lindi, Tanzania, on 15 January 2019, the Lindi Regional Commissioner Hon. Godfrey Zambi stated “The Government of Tanzania recognises the efforts of Uranex during the valuation and land compensation process, the Company and consultants performed in a professional and very correct manner to assure all the Project Affected People were compensated fairly and timely.”
As part of the Magnis valuation and compensation program, there is a need to look after the relocation of families that resided within the Special Mining License area. 59 households ranging from relatively well-built local clay fired brick houses that are roofed with corrugated iron sheets to poorly built mud walled, and grass thatched houses were identified to be inside the SML area. These people must be resettled elsewhere or placed into short term rental accommodation whist new housing is built to make way for development of the mine and its infrastructure.
Magnis has decided to build alternative modern houses outside the SML and to do so, has acquired 54 acres of land outside the SML area to build houses for the affected households falling inside the SML. This village land is currently named Nachu Village and since it will host a minimum of 59 households, key social facilities will be required to support the population of the area. The Nachu Village will likely in time, become a small township and for this reason, a separate ESIA study was completed to identify, assess and focus on all positive and negative impacts generated by the establishment of such a small township to properly mitigate the negative impacts and enhance positive benefits of establishing such a village. The ESIA is a key planning and management tool of the township during the construction and operational phase of the Nachu Village project.
Uranex has received the Environmental Certificate approving and accepting the ESIA report and the measures within and in turn allowing the next phase of proceeding with the resettlement village including a local District building permit and finalisation of construction tender processes.
Corporate and Social Responsibility (CSR)
As part of a larger education CSR initiative, Uranex surveyed, mapped, prepared and then presented maps to the Ruangwa District Authority so that the school system and distribution was clearly known to all parties in order to highlight and discuss education and proximity challenges. A follow up campaign has been ongoing this quarter to distribute to schools, maps of Tanzania and story books to provide some education support material for teachers and students.
Figure 3: Uhuru Primary School teachers and pupils receiving books and maps from Magnis subsidiary company,
Uranex Tanzania Limited
Engineering, Procurement, Construction and Finance (EPC+F) Discussions
In recent weeks senior level Magnis representatives have held domestic and overseas meetings with a global engineering group regarding EPC+F for the Nachu Graphite Project. These meetings also included a visit to the Nachu site, with the Company aiming to release more definitive details of any EPC and Finance packages once agreements have been made.
Potential Indian lithium-ion battery plant
The Company released information to the ASX on 21 January 2019, regarding an announcement by The Government of India’s Ministry of Heavy Industries and Public Enterprises, advising that BHEL was in dialogue with LIBCOIN on the building of India’s first lithium-ion battery (LIB) Gigafactory beginning at 1GWh and scaling up to 30GWh. BHEL is a global energy powerhouse with its equipment accounting for 60% of India’s power generation. BHEL is a leading state-owned company with more than 50 years of experience, wherein The Government of India is holding 63.06% of its equity. BHEL is an integrated power plant equipment manufacturer and one of the largest engineering and manufacturing organisation in India, catering to the core infrastructure sectors of the Indian economy. The annual turnover of BHEL for the year 2017-18 was approximately US$4.1 Billion with over US$8 Billion in assets. BHEL’s highly skilled and committed employees amount to 37,500 in number.
BHEL has technology tie-ups with leading providers that include General Electric, Siemens, Metso Automation Inc and Kawasaki Heavy Industries Ltd.
LIBCOIN is a consortium made up of Magnis, Duggal Family Trust and Charge CCCV (“C4V”) and has a vision to build large LIB gigafactories globally with the significant focus being on the Indian market. Currently, Magnis has a 20% non-dilutive stake in LIBCOIN. The consortium plans to maintain a technical competitive advantage through existing and new unique IP, that will continue to deliver superior LIB cells by delivering vertically integrated global procurement capability throughout the LIB Battery Supply Chain.
The consortium has been in discussions with BHEL for almost twelve months and is the natural choice as a partner on the project as they are synonymous with power generation in India. BHEL is a household name in India and carries a history of quality and expertise in the power sector and has significant requirements for LIBs in the short-term with those requirements growing exponentially in the long-term.
Discussions are currently taking place with BHEL and other groups who are looking at supporting the creation of a lithium-ion cell manufacturing plant in India. With all discussions being ‘Commercial in Confidence’, the Company will announce any developments as they come to hand.
The cash position for the Company at 31 March 2019 was A$3.86M. The Company has a 10% interest in battery technology group C4V and has provided a short-term loan of A$1.2M to C4V that is expected to be repaid over the next two quarters.
The following are the Mineral Tenements held by the Company:
SML550/2015 SML Nachu (100%)
PL10929/2016 Nachu (100%)
Magnis Energy Technologies Ltd
+61 2 8397 9888
Australia isn't a producer of graphite (yet), but three states in the country are home to millions of tonnes of reserves and resources.
Graphite has been growing in popularity in recent years as its applications as a battery mineral are realised, and as the popularity of electric vehicles grows around the world.
A form of carbon, graphite is a good conductor and is invaluable in electronics. It comes in three different forms, each with their own valuable applications in modern technology, making it a sought-after commodity without which supply lines for many industries around the world would grind to a halt.
Graphite isn't produced in Australia (yet), but the country sits on 1.05 million tonnes of ore reserves, and 7.14 million tonnes of economic demonstrated resources (EDR), as per 2017 government data — and those numbers are way up from the previously disclosed data from Canberra in 2013.
But back to Australia, whose graphite reserves and EDR are shared between three states: Queensland, with 1.32 million tonnes EDR, South Australia, where 4.72 million tonnes EDR can be found, and Western Australia, which is home to 1.1 million tonnes EDR.
Exploration is on the up in Australia and around the world for graphite, with demand for the mineral set to grow thanks almost solely to the proliferation of electric vehicles.
The Australian government is cognizant of this development, reporting that it is confident interest in the mineral will not only remain high, but will increase as time goes on. In fact, graphite is classified by the nation's government as a critical mineral, and the country has dedicated significant resources to researching market gaps and opportunities available.
The government has identified five projects between Western Australia and South Australia that have the potential to bring Australia to the table when it comes to production.
However, as of the most recent government report, none of them are producing. One asset is being explored, another is in the prefeasibility stage and the remaining three are in the feasibility stage.
The most developed projects appear to be Mineral Commodities' (ASX:MRC) Munglinup project in Western Australia, where a definitive feasibility study was completed in early 2020, with a final investment decision targeted in 2023, and Renascor Resources' (ASX:RNU) Siviour project on the Eyre Peninsula in South Australia, which has a final investment decision slated for 2022.
Renascor has hopes for production to begin by the end of 2023, and has signed memorandums of understanding for 100 percent offtake agreements. The company boasts that Siviour, which had a definitive feasibility study completed recently — is the world's second largest proven reserve of graphite, and the largest graphite reserve outside of Africa.
For its part, the Munglinup project in Western Australia is Mineral Commodities' second major graphite project, behind its flagship Skaland project in Norway. Munglinup is in the far south of Western Australia, near the port city of Esperance — giving it fantastic transport options.
Both Munglinup and Siviour, if they proceed in coming years, would produce 132,000 tonnes of graphite between them in the early stages — putting Australia well and truly on the leaderboard globally when it comes to graphite production.
The remaining projects — though not as developed or as far along with investment planning — would add another 178,000 tonnes of graphite production if they are constructed as envisaged.
As boasted by the Australian government, "the only direction for Australia's graphite production is up" — though that is indeed a reflection of the fact that current graphite production is exactly zero.
More broadly, Australia is positioning itself to take advantage of wider industry gains across the electric vehicle market, and to present itself as a reliable trading partner. Graphite, like rare earths, is classed a critical mineral by both Australia and the US — and its use extends beyond technology and into national security as well given its applications as a heat-resistant material.
Don't forget to follow us @INN_Australia for real-time updates!
Securities Disclosure: I, Scott Tibballs, hold no direct investment interest in any company mentioned in this article.
Sydney, Australia – New Energy Minerals Limited is pleased to provide an update to the market in relation to the Company’s activities for the period ending 31 December 2020. Corporate Update New Project Acquisition The Company has previously announced with the closing of the Balama Sale Transaction on 17 July 2020 that it has no further operations in Mozambique and that the closing also represented a disposal of its …
Sydney, Australia (ABN Newswire) – New Energy Minerals Limited (ASX:NXE) (FRA:GGY) (OTCMKTS:MTTGF) is pleased to provide an update to the market in relation to the Company’s activities for the period ending 31 December 2020.
New Project Acquisition
The Company has previously announced with the closing of the Balama Sale Transaction on 17 July 2020 that it has no further operations in Mozambique and that the closing also represented a disposal of its main undertaking as previously approved by shareholders at a general shareholder meeting on 13 May 2020.
Subsequently, the Company agreed to acquire a new mineral project and on 13 October 2020 requested a trading halt pursuant to ASX Listing Rule 17.1 pending announcement of a project acquisition.
On 13 November 2020, the ASX suspended the Company from official quotation pending the release of an announcement regarding an acquisition and that the Company’s securities will remain suspended until it has recomplied with Chapters 1 and 2 of the Listing Rules, including the issue of a prospectus.
Arena Investors Dispute
Confidential settlement negotiations with Arena have continued during the quarter and the Company expects to be able to make a further announcement in this regard during the first quarter of 2021.
Appointment of experienced technical directors
On 18 November 2020, the Company announced the appointment of Dr Bernard Olivier and Dr Evan Kirby to the Board of the Company in conjunction with the resignation of Mr Paul Ching and Mr Jackie Lee. Both were nominated to the Board by the Company’s largest shareholder UBezTT International Investment Holdings (BVI) Ltd.
To view the report, please visit:
About New Energy Minerals Ltd:
New Energy Minerals (ASX:NXE) is an ASX listed junior mining company, that recently announced the divestment of the Company’s Caula vanadium – graphite project and the Montepuez Ruby project in Mozambique.
New Energy Minerals Ltd
News Provided by ABN Newswire via QuoteMedia
Syrah remains engaged in progressing the feasibility study for the scale-up of the Vidalia facility post-product qualification.
Graphite producer Syrah Resources (ASX:SYR,OTC Pink:SYAAF) said it is temporarily suspending operations at its Vidalia battery materials plant in the US state of Louisiana following a state-wide “Stay at Home Order” to fight the spread of COVID-19.
The order, issued on Sunday (March 22), will be in effect until April 13, with Syrah saying it does not meet criteria for exclusions under this regulation.
“This will delay the distribution of purified natural graphite samples for qualification with potential customers whilst the Stay at Home Order remains in place,” the company said in a press release.
Right now, Syrah’s team is working remotely to progress the feasibility study for the scale-up of the Vidalia facility post-product qualification.
The US plant, which the company purchased for US$1.23 million, produced its first unpurified spherical graphite at the end of 2018, with qualification samples dispatched to target customers in early 2019. The facility has environmental permits in place and an initial milling capacity of 5,000 tonnes per year.
Syrah’s Balama graphite project in Mozambique, which is the largest natural graphite operation outside of China, remains operational at this time.
“The company continues to monitor and assess the international mobility of personnel, the free movement of goods through supply chains and broader market conditions,” Syrah said, adding that it continues to strengthen protocols in response to COVID-19 risks at the asset.
Back in September, the company reduced production volumes to 5,000 tonnes per month at Balama due to volatility in the market. Syrah said it has continued its moderated production strategy into Q1 of this year as planned, seeking to match production volumes with market demand.
“Despite the near-term uncertainty due to COVID-19, the long-term market fundamentals for natural flake graphite remain intact, with ongoing commitment to the decarbonisation of the transport sector via lithium ion powered electric vehicles by supply chain participants and governments,” the company said.
Syrah expects its end-of-quarter cash balance to be broadly aligned to guidance of US$64.6 million.
On Tuesday (March 24), Syrah was trading up 2 percent at AU$0.23. However, the company’s share price has been suffering since the start of the year, and is down more than 50 percent since January.
Don’t forget to follow us @INN_Australia for real-time updates!
Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.
“Australia has the opportunity to be a green energy powerhouse if it has the political will and foresight, endowed with vast reserves of lithium, nickel, copper, rare earths, uranium and plenty of wind and sun to drive renewable energy production.”
— David Franklyn, Argonaut
“Industrial metal prices will continue to rise, supported by lack of supply and rising demand as the globe continues to recover and restrictions lift. With copper and aluminium stock already running low, development could send prices back towards — and potentially above — the record levels seen last year. Commodities and energy stocks will likely remain the best performers — they are so far in 2022.”
— Jessica Amir, Saxo
The Investing News Network is a growing network of authoritative publications delivering independent, unbiased news and education for investors. We deliver knowledgeable, carefully curated coverage of a variety of markets including gold, cannabis, biotech and many others. This means you read nothing but the best from the entire world of investing advice, and never have to waste your valuable time doing hours, days or weeks of research yourself.
At the same time, not a single word of the content we choose for you is paid for by any company or investment advisor: We choose our content based solely on its informational and educational value to you, the investor.
So if you are looking for a way to diversify your portfolio amidst political and financial instability, this is the place to start. Right now.
Western Australia’s International Graphite (ASX:IG6) has signed a non‐binding Memorandum of Understanding (MOU) with ZEN Energy with the objective of concluding binding agreements for the purchase of firmed renewable energy from ZEN Energy by International Graphite for its Collie operation
ZEN Energy, whose major shareholder is leading climate change economist Professor Ross Garnaut, is a renewable energy retailer that currently supplies the electricity needs of the South Australian Government, CSIRO’s sites in the eastern states, a set of commercial and industrial businesses in the SACOME Buying Group and twenty‐five local regional councils in New South Wales. ZEN is assessing the feasibility of building a 200MW, 600 to 800MWh battery at Collie, south of Perth. The battery would be around four times the size of Tesla’s big battery in South Australia.
International Graphite is developing downstream graphite processing facilities in Collie. This facility will undertake research and development activities and conduct pilot testing of graphite concentrates for purification and spheroidising of graphite for Battery Anode Material (BAM) applications, as well as produce micronised graphite. It is the Company’s intention to expand the facility to commercial scale production.
The power supply agreement with ZEN Energy would provide a renewables power source to drive the graphite technologies that International Graphite plans to develop at its downstream processing facility. This will help the company achieve its targets for low carbon emissions and facilitate rapid production expansion in the future.
Both International Graphite and ZEN Energy are supported by the Western Australian Government, which awarded International Graphite $2m through the Collie Futures Industry Development Fund toward the establishment of a graphite micronising plant at Collie and up to $1 million for the first stage of ZEN’s big battery feasibility study.1 This investment by the WA Government in both projects demonstrates its commitment to build Collie as a future centre of renewable energy projects in Western Australia.
International Graphite Executive Chairman Phil Hearse said access to renewable energy underpins our ability to deliver highly ESG accredited products into global markets.
“A critical supply of green power gives International Graphite an important advantage, helping ESG and environmental objectives, as well as supporting a new supply chain that will bring jobs to Collie and opportunity to Western Australia,” Mr Hearse said.
ZEN Energy’s big battery would help manage wholesale market risk in a program to supply renewable energy to new and existing industrial projects in Collie. It is expected to be a key feature in a new Collie Battery and Hydrogen Industrial Hub Project, which is the centrepiece in the Western Australian Government’s $100m strategy to create a major renewable energy centre in Collie and transition the local economy away from coal.
ZEN Energy CEO Anthony Garnaut said, “We are committed to creating practical energy supply solutions for customers seeking to grow their business on a sustainable footing.”
“Successful cooperation with International Graphite strengthens the commercial case for a big battery in Collie and provides a practical demonstration of how Australia can become a renewable energy superpower.
“There are additional benefits that a large battery will bring to the Western Australian grid. For example, it will support the continued investment of West Australian households in roof top solar by providing the ability to soak up excess solar energy, reducing the need to curtail residential solar production.”
This announcement has been authorised for release by the Board of Directors of International Graphite.
This article includes content from International Graphite , licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Winsome Resources CEO Chris Evans said, “Canada and the US are working feverishly to develop an internal battery materials supply chain and we think we're going to play a critical role in that.”
Winsome Resources CEO Chris Evans: Sustainable Hardrock Lithium Opportunities in Quebec youtu.be
Winsome Resources (ASX:WR1) CEO Chris Evans joined the Investing News Network to discuss the company and its Cancet lithium project in Quebec, Canada.
"We listed on the ASX on November 30, 2021," he explained. "We're lithium focused but based in Canada, and we've been pretty successful in the last six months — our share price has done well. I think I've been putting this down to the success factors which we possess as a company, including the fact that we're into lithium at a moment with high demand. Any mining company that's associated with lithium has tended to do well.
“Our assets are in Quebec, a fantastic mining jurisdiction for all sorts of reasons. Also, being listed on the ASX — Australian investors tend to like early stage plays a bit better. They've certainly woken up to the electric vehicle and lithium revolution that's occurring in the world. And it's a pleasure having the assets in Canada.”
Next, Evans got into specifics about the company's flagship project. “The Cancet project is our flagship, in the James Bay region of Quebec. All our projects are hard-rock lithium; that's digging the rocks out of the ground and concentrating the lithium in them. Then it gets converted into the final product, which is lithium carbonate or hydroxide, that then goes into electric vehicle batteries,” he explained.
“Cancet’s had about 5,500 metres of drilling done on it historically, so we know that there's a great deposit of lithium at fantastic grades. It outcrops on the surface, the lithium-containing spodumene from the pegmatite rock, where we have 3.7 percent lithium oxide over a 17 metre interval from the surface at our most successful drill hole. We just completed 2,000 metres of drilling ourselves, increasing our knowledge of the orebody that's there, and also looking for extensions to the orebody. We've got 395 claims, and our drilling and exploration is only over about 15 of the claims. So we've got a lot further to look here and a lot more to develop.”
As for supply location, and the company's relationship with the international market, Evans said, “We think it's fantastic for us, and our shareholders, that we have assets in Quebec. Roughly 50 percent of the world's hard-rock lithium comes from Australia, where it’s mined and concentrated. The problem is that final conversion into lithium carbonate or hydroxide all occurs at the moment in China ... lithium is on the critical minerals list in Canada, the US and Australia, and Canada and the US are working feverishly to develop an internal battery materials supply chain. We think we're going to play a critical role in that.”
Elaborating on the sustainability industry that drives the battery revolution, he said, “(Nearly) all power in Quebec is generated by hydroelectricity and renewable forms of electricity. That’s very important, because the mining and concentration process for lithium products traditionally produces a large carbon footprint, because it's energy intensive. The EU, from 2024, has mandated that all batteries are labeled with the carbon footprint of all the materials that are contained within them. Then, by about 2026, there's specific targets that batteries have to meet in order to be sold in the EU. If you don't have a renewable source of energy to produce your lithium products that go into those batteries, it's going to severely restrict your markets — and that's another bonus for us being in Quebec.”
Evans said that Winsome Resources’ approach is to develop a mine itself, rather than selling or partnering. “We will approach this as if we are going to be developing the Cancet project, and producing lithium ourselves, in four or so years. And I think that'll best serve our shareholders.” With regards to other ways the company could benefit investors, Evans said, “Being listed on the ASX, and having access to a lot of capital, I think there's a great opportunity for us to acquire other projects in Canada. We're about to start our summer exploration. And we're on the lookout for a new project. So I think the good news is really to come.”
Watch the full interview of Winsome Resources CEO Chris Evans above.
Disclaimer: This interview is sponsored by Winsome Resources (ASX:WR1). This interview provides information that was sourced by the Investing News Network (INN) and approved by Winsome Resources in order to help investors learn more about the company. Winsome Resources is a client of INN. The company’s campaign fees pay for INN to create and update this interview.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Winsome Resources and seek advice from a qualified investment advisor.
This interview may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, receipt of property titles, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The issuer relies upon litigation protection for forward-looking statements. Investing in companies comes with uncertainties as market values can fluctuate.
Where are the silver mines in Australia? You might be surprised to learn that the country is home to one of the world’s top primary silver producers.
Mining is a big part of Australia’s history, and it continues to shape the country’s economy and position in the world today. The nation is one of the world’s top producers and exporters of resources, with coal, uranium, copper and gold being some of its best-known commodities.
Australia is also a key producer of silver — it was the world’s fifth-largest producer of the metal in 2021, tied with Russia, putting out 1,300 MT. Interestingly, most of Australia's silver is produced from silver-bearing galena, but some is also produced from copper and gold mining.
Refined silver comes mainly from the Port Pirie lead smelter and refinery in South Australia, though silver is also refined at gold refineries in Perth, Kalgoorlie and Melbourne.
But where are the silver mines in Australia, exactly? While it’s interesting to know what types of deposits the precious metal is found in, many investors want to know what companies are producing silver and where their mines are located geographically. Read on to find the answers to those questions.
Silver has played a role in Australia since the mid-1800s — Wheal Gawler, Australia’s first metal mine, was a silver-lead mine developed in South Australia in the 1840s. And that’s not Australia’s only early silver-mining operation — the Broken Hill deposit in New South Wales and the Mount Isa deposit in Queensland are two other early Australian silver discoveries.
Broken Hill, a lead-zinc-silver deposit, was discovered in 1883 by German immigrant Charles Rasp, and the Broken Hill Proprietary Company was born in 1885; it ultimately merged in 2001 with another mining giant, Billiton, to form BHP Billiton (ASX:BHP,NYSE:BHP,LSE:BLT). BHP Billiton is no longer involved with Broken Hill, but ore is still being extracted there today. Perilya now runs the southern and northern operations.
For its part, Mount Isa was discovered in 1923 by John Campbell Miles, and like Broken Hill is still producing today. It was acquired by Glencore (LSE:GLEN) in 2013 and in addition to silver is also a producer of zinc.
These major early Australian silver discoveries are not the country’s only sources of silver. Other silver mines in Australia include Cannington, one of the world’s top primary silver producers. It’s a fly-in, fly-out mining and processing operation that is owned by South32 (ASX:S32,LSE:S32), a diversified resource company spun out from BHP Billiton in 2015. Cannington also produces lead and zinc.
Australia holds the McArthur River mine as well, which opened in 1995 and is owned by Glencore subsidiary McArthur River Mining. The mine is one of the world’s largest zinc-lead-silver mines, and is located in Australia’s Northern Territory.
Glencore’s 2021 annual report claims total silver production reached 31.519 million ounces for the year, representing a 4 percent drop from 2020. That includes 625,000 ounces from McArthur River.
The Century mine, which previously belonged to MMG (HKEX:1208), shut its doors at the end of 2015, but was a major producer of zinc (and silver) until that time. It was reopened in mid-2018 by New Century Resources (ASX:NCZ) and the company says it now has an estimated annual production capacity of 264,000 tonnes of zinc and 3 million ounces of silver.
Independence Group (ASX:IGO) also produces silver, along with copper and zinc, at its Jaguar operation in Western Australia. Gold producer Silver Lake Resources (ASX:SLR) owns some projects with silver reserves as well. As you can see, there are and have been many silver mines in Australia.
In addition to being home to a slew of large silver mines, Australia also plays host to many companies that are exploring and developing silver projects. Below are a few that have made recent progress.
Please let us know in the comments if we’ve forgotten to mention any Australia-focused silver companies. All companies listed had market caps of at least AU$5 million on May 19, 2022.
Argent Minerals (ASX:ARD) — Argent Minerals’ main asset is its 100-percent-owned Kempfield polymetallic project in New South Wales. In May 2018, the company announced an updated resource estimate for the asset — its silver equivalent contained metal now stands at an estimated 100 million silver equivalent ounces at 120 g/t silver equivalent; that’s approximately double the previous estimate.
In total the company has three projects, with all of them being in New South Wales.
Investigator Resources (ASX:IVR) — Investigator Resources is advancing silver, copper and gold deposits in South Australia. Currently its properties include the Peterlumbo/Paris silver project, the Eyre Peninsula and Stuart Shelf projects and the Northern Yorke Peninsula projects.
The total resource for Paris stands at an estimated 18.8 million tonnes at 88 g/t silver and 0.52 percent lead for 53.1 million ounces of contained silver and 97,600 tonnes of contained lead (at a cut off of 30 g/t silver). The indicated component is 12.7 million tonnes of silver (95 g/t) and represents 73 percent of the total estimated resource ounces.
Horizon Minerals (ASX:HRZ) — Horizon Minerals owns the Nimbus silver-zinc project in Western Australia. Nimbus has a high-grade silver-zinc resource estimate of 255,898 tonnes at 773 g/t silver and 13 percent zinc; the total Nimbus resource stands at 1.21 million tonnes at 52 g/t silver, 0.9 percent zinc and 0.2 g/t gold.
Silver Mines (ASX:SVL) bills itself as a leading Australian silver exploration company, and has spent a considerable amount of time acquiring Australian silver projects. Those include Malachite Resources’ (ASX:MAR) Conrad project and Kingsgate Consolidated’s (ASX:KCN) Bowdens silver project.
While the company’s main focus has been on the Webbs silver project in New South Wales, the Bowdens project represents the largest undeveloped silver project in Australia, and Silver Mines is working to get the project through the feasibility, environmental impact statement and permitting stages.
In a 2018 report, the feasibility study demonstrated an average silver production of 3.4 million tonnes per annum for the project, with 5.4 million during the first three years of operation. Estimations also included 6,900 tonnes of zinc and 5,100 tonnes of lead.
This is an updated version of an article first published by the Investing News Network in 2018.
Don’t forget to follow us @INN_Australia for real-time updates!
Securities Disclosure: I, Ryan Sero, hold no direct investment interest in any company mentioned in this article.