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Metals Australia (ASX:MLS) has told the market it’s getting closer to a PFS for its Lac Carheil graphite project in Quebec, Canada.
Downstream design work is set to kick off which will point MLS towards its ideal solution for purification of graphite ores. The company has also grown its landholding on-site by 62% to 11,905ha targeting to lock in areas for key infrastructure; a plant site study is also on the way.
So too is a Project Economic Assessment (PEA) for its battery anode material refinery. Graphite is converted into a foil and placed into EV batteries where it acts in a way that allows electricity to ‘flow’ through the battery.
Metals Australia also pointed to the results of metallurgical testwork (‘metwork’) done earlier this year which boosted the proportion of coarse flake graphite from one area of interest by 27% which the company expect to pull in higher revenues as it’s a premium product.
The company is paying particular attention to whether or not the Canadian government moves ahead with tariffs on Chinese critical mineral imports; a basket of minerals within which graphite firmly falls. (China introduced more of its own red tape for graphite exporters in October last year.)
“The very clear message from [recent] discussions is that our project is rapidly developing a profile as one of the best graphite projects advancing in North America today,” MLS chief Paul Ferguson said.
“Earlier this week, the Lac Carheil project received a further potential tailwind when Canada’s Department of Finance launched a 30-day consultation process on a range of potential new surtaxes, including on critical minerals, in response to what it claimed were unfair Chinese trade practices.
“Our project can contribute to forecasted shortfalls of graphite required to meet national and homeland security requirements across North America. This future stands in stark contrast to the state of domestic market supply for graphite in North America today.”
MLS last traded at 2.4cps.
