Sarytogan Graphite Project in Kazakhstan Reaches Important Milestone

The Sarytogan Graphite Project in Kazakhstan has reached a major step by achieving 'Measured' resource classification for its main graphite area. This means there is more certainty about the amount of graphite and helps plan for future mining.
By Newsroom | Mining, Kazakhstan |

A significant advancement in the Sarytogan Graphite Project in Kazakhstan has been announced, with the achievement of a "Measured" resource classification for its central graphite zone. This development is critical for the project's progression towards commercial viability, enhancing geological certainty and de-risking future production plans. The project's substantial total mineral resource, now encompassing 225 million tonnes at 29.2% total graphitic carbon (TGC), positions it as a world-class graphite deposit. This milestone arrives amidst a global race for critical materials essential for energy storage technologies.

Project Overview and Strategic Context

The Sarytogan Graphite Project, located in Kazakhstan's Karaganda province, is the company's flagship asset. Initial studies, including a Pre-Feasibility Study (PFS), outlined a multi-stage development approach over an extended 60-year mine life. This staged strategy is designed to manage initial investment while allowing for scalable operations, with plans for beneficiation, thermal purification, and eventual spheronising and coating plants.

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  • Development Profile: A 50,000 tonnes per annum (tpa) staged development is planned.

  • Mine Life: An initial 60-year mine life has been projected.

  • Staged Expansion: The project envisions four stages, progressing from a basic beneficiation plant to advanced processing for high-purity graphite products.

  • Strategic Location: The project's location between European and Asian markets is seen as advantageous for supplying critical materials.

Resource Classification and Scale Enhancement

The recent achievement of "Measured" classification for the central graphite zone is a pivotal step. This classification signifies a higher degree of confidence in the geological model and the contained mineral resources.

  • Previous Classifications: The project previously held indicated and inferred resources in its northern zone, totaling 168 million tonnes at 29.3% TGC.

  • Combined Resource: The addition of the measured resource in the central zone brings the total mineral resource inventory to a massive 225 million tonnes at 29.2% TGC.

  • Geological Confidence: The re-evaluation of the resource has sharpened geological confidence, particularly in the priority mining area.

  • De-risking Production: This enhanced confidence materially de-risks the path to eventual production.

  • Deposit Type: The graphite deposit is characterized as a black shale regional-metamorphic type.

Drilling and High-Grade Mineralisation

Recent drilling campaigns have consistently yielded high-grade graphite intersections, reinforcing the deposit's exceptional quality. These results are instrumental in supporting the ongoing Definitive Feasibility Study (DFS).

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  • Drilling Objective: The infill drilling program targeted the first 25 years of planned mining, aiming to upgrade the existing resource and reserve estimates.

  • Assay Results: Significant intersections have been reported, including a 50.2-meter interval grading 34.5% TGC, with a high-grade sub-section of 29.2 meters at 40.1% TGC. Other results have shown intersections reaching up to 41.3% TGC.

  • Grade Continuity: The drilling has improved the resolution of grade continuity within the ore body.

  • Exceptional Tenor: The reported grades are significantly higher than typical market standards, which often range from 1.8% to 2.2% TGC.

  • JORC Resource: The deposit is noted as having the world's highest-grade graphite JORC Resource.

Metallurgical Performance and Purity

Metallurgical testing has demonstrated the potential for producing ultra-pure graphite, a critical requirement for advanced applications such as lithium-ion batteries.

  • High Purity Achieved: Metallurgical tests have yielded purity levels as high as 99.9992% TGC.

  • No Chemical Pre-treatment: This high purity was achieved without requiring chemical pre-treatment, potentially lowering processing costs and environmental impact.

  • Application Relevance: High-purity graphite is a crucial component in the supply chain for batteries and energy storage technologies.

Economic Viability and Future Studies

The project's characteristics, including high-grade mineralisation and efficient processing potential, are key to its economic prospects. The company is progressing towards a Definitive Feasibility Study (DFS), expected in mid-2026.

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  • Economic Drivers: High tenor graphite is essential to offset the significant costs associated with concentration, purification, and transport, which increase sharply when grades fall below critical thresholds.

  • Staged Development Benefits: The staged development strategy allows for minimized initial investment and earlier cash flow generation.

  • Definitive Feasibility Study (DFS): The DFS is currently underway and is expected to incorporate the latest resource and reserve upgrades.

  • PFS Economic Outcomes: The PFS outlined attractive economic outcomes for the project over its projected long mine life.

  • Resource Upgrade Anticipation: The results from recent drilling are strongly anticipated to enhance confidence in the project's scale and economics.

Regulatory and Market Engagement

Sarytogan Graphite has secured a key mining licence and is actively engaging with potential customers, underscoring its progress towards commercial operations.

  • Mining Licence Secured: The company has obtained a crucial mining licence for the project.

  • Favorable Operating Environment: The licence features relatively low minimum expenditure requirements, indicating a supportive and economically viable operating environment.

  • Customer Discussions: Early discussions with potential customers for trial sample deliveries are underway.

  • Global Demand: The project is positioned to benefit from increasing global demand for critical minerals.

  • Kazakhstan's Strategy: The project aligns with Kazakhstan's ambition to become a reliable supplier of materials for battery and energy transition technologies.

Expert Analysis

"Achieving Measured classification is a significant step forward for the Sarytogan Graphite Project." - Sean Gregory, Managing Director, Sarytogan Graphite.

"The discovery by an Australian company established in Kazakhstan of graphite intersections reaching up to 41.3% grade marks a rare feat, likely to redraw the stakes in the battery critical materials supply chain, while reinforcing Kazakhstan's strategic position in the global mining landscape." - Analysis based on Article 3.

Conclusion and Implications

The Sarytogan Graphite Project has reached a pivotal stage with the achievement of "Measured" resource classification, bolstered by consistent high-grade drilling results and promising metallurgical testing. The deposit's substantial scale, coupled with its exceptional tenor, positions it as a globally significant graphite asset. The project's staged development plan and favourable licensing environment suggest a clear pathway towards commercialisation.

  • Key Findings:

  • Measured Resource Achieved: Enhances geological certainty and de-risks the project.

  • World-Class Scale: A total resource of 225 million tonnes at 29.2% TGC.

  • High-Grade Mineralisation: Drilling consistently reports high tenor graphite, critical for economic viability.

  • Ultra-Pure Graphite Potential: Metallurgical tests indicate the possibility of producing high-purity graphite without chemical pre-treatment.

  • Regulatory Progress: Key mining licence secured, with favorable operating terms.

  • Market Engagement: Proactive steps taken to engage with potential customers.

  • Implications:

  • The project could become a significant contributor to the global supply of high-quality graphite, essential for the growing electric vehicle and energy storage markets.

  • Kazakhstan's strategic position as a supplier of critical minerals is further solidified.

  • The enhanced confidence in the resource and economic projections from the upcoming DFS is likely to attract further investment.

  • Next Steps:

  • Completion of the Definitive Feasibility Study (DFS), anticipated mid-2026.

  • Continued engagement with potential customers for offtake agreements.

  • Progression towards construction and development phases based on DFS outcomes.

Sources

Frequently Asked Questions

Q: What is the Sarytogan Graphite Project?
It is a large graphite mine project in Kazakhstan that has found a lot of graphite.
Q: What does 'Measured' resource classification mean?
It means experts are very sure about the amount of graphite in this part of the mine.
Q: Why is this project important?
It could supply important materials for batteries and energy storage, helping with new technology.