Metals Australia (ASX:MLS) Shares Rise on High Purity Results at Lac Rainy

the market herald2022-02-28

  • Metals Australia (MLS) reports high-purity flake graphite concentrate results of up to 96.8 percent total graphite carbon at its Lac Rainy project in Quebec, Canada
  • This ‘outstanding’ result comes from phase two testwork and is in the upper end of the target range of 95 to 97 percent total graphite carbon
  • Metals Australia says the high-purity results and scoping study outcomes show the strong economic potential of Lac Rainy to generate high-operating margins
  • The company said confirming the project can produce high-grade graphite for the lithium-ion battery industry allows it to advance exploration potential at the project
  • Metals Australia is up 27.9 percent to trade at 5.5 cents per share

Metals Australia (MLS) has reported high-purity flake graphite concentrate results of up to 96.8 percent total graphite carbon at its Lac Rainy project in Quebec, Canada.

Positively, this outcome is in the upper end of the target range of 95 to 97 percent total graphite carbon.

The results come from phase two testwork and a process flowsheet development program which has reportedly improved the open-circuit processing conditions to provide a stepping-stone to feasibility study level, larger scale, closed circuit and variable testing.

Metals Australia said these results and the outcomes of the scoping study show the strong economic potential of Lac Rainy to generate high-operating margins.

Metals Australia said confirming that Lac Rainy is capable of producing high grade graphite for lithium-ion battery applications allows it to advance exploration potential at the project.

China currently produces about 90 percent of the world’s spherical graphite for lithium-ion batteries but some markets, such as North America, are looking to diversify their supply and not depend on China.

“The Lac Rainy Graphite Project is perfectly located and has the optimum graphite concentrate characteristics to take advantage of this opportunity,” the company told the market.

So far, the company has only drilled 1.6 kilometres over the four-kilometre strike Carheil trend which offers significant exploration upside potential.

Metals Australia was up 27.9 percent to trade at 5.5 cents per share at 12:48 pm AEDT.

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