In a word: big, and one of the largest in the world.
Leliyn has defined resources of 195 million tonnes at 7.3% total graphitic carbon for 14.2 Mt of contained graphite today, but that is based on just 4km of the 20km of outcropping graphitic schist defined so far.
The new target makes it a potential behemoth with upside of between 700Mt and 1.1Bt grading 7-8% TCG for 50-90Mt contained graphite.
That target is limited to 12km of strike to the north of the resource, so it could grow larger still.
Initial metallurgical tests on the inferred resource delivered a commercial-grade 94% TGC concentrate. Follow-up tests are assessing production of spherical graphite for use in making battery anode material.
Kingsland managing director Richard Maddocks said Leliyn had “exceptional scope”.
It is already one of the 10 largest deposits outside China, behind Black Rock Mining’s 1.6Mt Mahenge, EcoGraf’s 21Mt Epanko and Volt Resources’ 22.8Mt Bunyu projects in Tanzania, and if the target were successfully drilled out, it would eclipse Sarytogan Graphite’s 60Mt namesake project in Kazakhstan.
It would be second only to Syrah Resources’ 119.6Mt Balama project in Mozambique, but unlike its rivals, it would be in a tier one, low sovereign risk jurisdiction that is considered one of the most mining friendly in the world and is right on Asia’s doorstep.
Given China is restricting exports, it makes it even more significant in the fine flake space, particularly if forecasts of a supply shortage are on the money.
Maddocks confirmed Kingsland had some “very preliminary, informal discussions” about its development last year that were advancing to a more serious level now that it had the met test data.
Drill rigs are poised to start infill and extensional drilling now that the Top End wet season is over, which will help “pick out the eyes” out of the high-grade resource.
Given Leliyn is a sub-vertical orebody with a “nice, simple and consistent” geology that is suitable for bulk mining, Maddocks suggested any future operation could have a low stripping ratio and perhaps no waste at all in the early years.
Kingsland also has interests in Western Australia’s emerging Lake Johnston belt that are prospective for lithium, and the small Cleo uranium deposit in the NT. It is looking to divest the latter.
