Source: Streetwise Reports 12/04/2018
As green energy initiatives boost the need for graphite, one company continues to explore for the element in an unlikely place.
Graphite is the most common non-metal substance that can conduct electricity with significant heat resistance. It is no surprise that strong demand for graphite is fueled by the new economy: green energy initiatives, including lithium-ion batteries (electric vehicles and energy storage), renewable energy, superconductors, innovative new building materials and nuclear energy.
Large-flake graphite is mostly used in the steel industry as refractory material for its heat resistant properties. Demand for graphite flakes is increasing rapidly as infrastructure development, EV and large-scale energy storage sectors become more prominent in global focus. Graphite can be mined (natural flake graphite) or produced by heating and altering petroleum coke (synthetic graphite).
Jumbo and large-flake graphite is used in electronics, graphite foils and new building materials such as flame-retardant insulation. Small-flake graphite is a major component in the construction of anodes for lithium-ion batteries. As a result, the world consumption of flake graphite is expected to increase by over 300% from 710 ktpa to 2.4 Mtpa by 2025. Flake graphite accounts for approximately 40% of global natural graphite supply.
SRG Graphite Inc. (SRG:TSX.V) is a Canadian resource company that works in the exploration, development and production of high-quality, low-cost natural graphite flakes. The company is also working on its nickel-cobalt-scandium laterite project located 5km away from its graphite project.
SRG operates in the southeast region of the Republic of Guinea, in West Africa, and recently announced results for its latest round of assay testing with 162 new boreholes, bringing total tests to 557 boreholes and over 18,037 meters drilled. Cost efficiencies encouraged SRG management to expand the drilling program, according to a recent press release.
Mineralized material from the deposit is being used to produce graphite concentrate so the company can ship samples to prospective clients. Intermediate graphite concentrate will also be shipped to prospective customers to assist in evaluation of the equipment selected for the feasibility study.
Committed to sustainable and traceable mining, SRG also signed on to the United Nations Global Compact, which commits it to universal sustainability principles. The company further reports sustainability progress through the Global Reporting Initiative, an independent international standardization organization.
SRG recently engaged the expertise of EEM Sustainable Management (EEM), a Canada-based independent environment consultancy company from Montreal with significant experience in Guinea, to revise and update the Lola graphite project environmental and social impact assessment to ensure compliance with local and international standards.
SRG is catching the eyes and ears of the market; Beacon Securities released a report on September 24, 2018, stating the reasons the firm likes the company:
Multi-asset exposure to battery metals/materials
Low capex of $100 million for Lola graphite project
Fully financed through feasibility at Lola
The same report explained that SRG is working with SGS Canada for metallurgical test work, flowsheet validation, piloting …read more
Source:: The Gold Report