- Quantum Graphite (QGL) has announced further details in relation to the Uley 2 Mining Study and Ore Reserve Estimate
- This Ore Reserve Estimate represents the last of the main studies required for finalising the Definitive Feasibility Study for the Uley Graphite Project
- The total Ore Reserve Estimate is 4003 tonnes at a graphitic carbon grade of 11.89 per cent
- Quantum also reported on its estimated total costs for the operations at Uley 2, which will be roughly $20.3 million
- The company will begin considering project funding proposals for Uley 2 once it has secured sufficient off-take arrangements
- Company shares are down 21.5 per cent today and are trading at 5.1 cents each
Quantum Graphite (QGL) has announced further details in relation to the Uley 2 Mining Study and Ore Reserve Estimate.
This Ore Reserve Estimate represents the last of the main studies required for finalising the Definitive Feasibility Study for the Uley Graphite Project.
The project is located in Uley which is 23 kilometres southwest of of Port Lincoln on the Eyre Peninsula in South Australia. The mine, however, has been under care and maintenance since production halted in the early 1990s.
Historically, the open-cut mine was capable of producing up to 14,000 tonnes of graphite concentrate annually.
Uley 2 sits within the greater Uley Graphite Project and consists of five tenements which Quantum has a 100 per cent interest in.
Further details build on the solid economics of Uley 2 which is expected to deliver lower quartile operating costs compared to similar mineral assets.
The total Ore Reserve Estimate is 4003 tonnes at a graphitic carbon grade of 11.89 per cent.
The optimisation for the pit design and mine plan was undertaken on material exclusively classified as Measured and Indicated Mineral Resources, on a 3.5 per cent TGC cut-off.
No material classified as Inferred Mineral Resource was utilised for the pit design or mine plan.
The process plant will accept run-of-mine ore and liberate graphite particles through crushing and grinding. The flotation and polishing sections will be the critical processing functions for recovering graphite, upgrading the graphite flake to maximise purity, and maintaining coarse flake size as much as possible.
Quantum also reported on its estimated total costs for the operations at Uley 2, which will be roughly $20,299,369.
The operating costs estimate for processing the graphite ore ($5,030,000) is based on treating 500,000 tonnes per annum of ore to produce 55,000 dtpa of saleable flake concentrate.
Quantum expects to begin consideration of project funding proposals for Uley 2 once it has secured sufficient off-take arrangements to support future sustainable operations.
Company shares are down 21.5 per cent today and are trading at 5.1 cents each at 1:34 pm AEDT.