- Volt Resources (VRC) starts JORC-compliant mineral resource process following restart at its Zavalievsky Graphite (ZG) operations in Ukraine
- Work recommenced over an 11-day period with 561 tonnes of graphite produced and over 37,000 tonnes of ore mined at an average grade of 6.1 per cent graphite
- Ore mined for the period was above the rate required for nameplate ore production, however waste mined was below the level required for open pit mine development
- The company says a JORC-compliant mineral resource is core to the sustainability of its business
- Shares have been trading 4.17 per cent higher at 2.5 cents
Following a restart at its Zavalievsky Graphite (ZG) operations in Ukraine, Volt Resources (VRC) is looking to implement a JORC-compliant mineral resource.
Volt has a 70 per cent controlling interest in the Zavalievsky Graphite business, which is looking to install a processing plant and equipment in order to commence production of spheronised purified graphite for the European lithium-ion battery market.
In a market update, the company detailed the work undertaken at its operations over November following an advance of funds for working capital.
Volt initially withheld the funds for the ZG business until changes were implemented to the company charters, enabling shareholder, board and executive management to operate and make decisions within an appropriate organisation structure with clear delegation of authorities, appropriate internal controls and transparent reporting.
A number of changes to the ZG management team were also implemented including a new CEO and CFO, following which, VRC advanced working capital funding to the business mid-November.
With the funds, work recommenced for 11 days, with 561 tonnes of graphite product produced at an average of approximately 51 tonnes of product per day.
While ore mined for the period was reportedly above the rate required for nameplate ore production, waste mined was below the level required for appropriate open pit mine development.
Now, ZG is evaluating the engagement of contract mining groups for waste removal due to the increased material movement required in the next 12 months.
To date, mining operations have been conducted on an owner-operated basis, requiring material investment in mining equipment and support facilities.
The company said it is also evaluating contract mining for ore production.
Moving forward, ZG is reportedly commencing the process to convert its current resource information to meet the requirements of the JORC 2012 code.
It believes the provision of a robust and JORC-compliant mineral resource and ore reserve position, overlain by an optimised mine plan and schedule, is core to the sustainability of ZG and Volt’s business.
Sales prices are also currently being renegotiated with customers due to a significant increase in European graphite prices which comes from lower Chinese graphite production, global supply chain disruption and increased shipping costs.
Shares were trading 4.17 per cent higher at 2.5 cents at 11:10 am AEDT.