Siviour
Highlights of the Siviour Project
- Globally competitive project economics, including:
> Lowest quartile OPEX: AU$450/US$333
> NPV10 (after-tax): AU$551m/US$407m
> Payback: 1.7 years - Competitive flake size distribution and high purities
- Among largest reported graphite deposits in the world, with unique shallow, flat-lying orientation
- Australia: low sovereign risk
Read: Siviour Scoping Study [link to ASX release of 23 May 2017]
Project Overview
The Siviour Graphite Deposit, located in South Australia’s Eyre Peninsula, is among the world’s largest reported graphite deposits with a Mineral Resource estimate of 80.6 million tonnes @ 7.9% TGC for 6.4 million tonnes of contained graphite, including higher-grade mineralisation of 30.1 million tonnes @ 10.0% TGC for 3.0 million tonnes of contained graphite. Read: Siviour Now Among Ten Largest Graphite Deposits in the World [link to ASX release of 17 March 2017].
Siviour Mineral Resource estimate as of 15 March 2017
| Category | Tonnes of mineralisation (millions) | TGC | Tonnes of contained graphite (millions) |
| Indicated | 51.8 | 8.1% | 4.2 |
| Inferred | 28.8 | 7.6% | 2.2 |
| Total | 80.6 | 7.9% | 6.4 |
Note: Cut-off grade of 3% total graphitic carbon
Renascor’s recently Scoping Study for Siviour suggests Siviour can produce a high-quality flake concentrate at estimated an operating cost among the lowest of reported graphite developments globally.
Project Location
The Siviour Graphite Deposit is located in South Australia’s Eyre Peninsula, approximately 15km west of the coastal township Arno Bay, 120km northeast of Port Lincoln and 150km southwest of Whyalla.
The project area consists of four granted exploration licences, covering an area of approximately 1,370 km2.
Project economics
Renascor has completed a Scoping Study based a 20-year mine life in which the entire Life of Mine (LOM) graphite production target would be entirely included within the existing Indicated Resource of Siviour. Based on market requirements and potential capital raising capacity, an annual production rate of 123,000 tonnes per annum was selected as the most viable scenario.
The Scoping Study is based on producing flake graphite concentrates from a proposed open pit mine and graphite production plant to be located on the project site in South Australia. The potential to produce spherical graphite or other advanced materials through downstream processing is to be considered in further studies.
A summary of the key results of the Scoping Study is described below.
Summary of key results from Scoping Study
| Annual graphite concentrate production (tonnes per annum) | 123,000 | |
| Plant throughput (tonnes per annum) | 1,650,000 | |
| LOM average feed grade (TGC) | 8.1% | |
| NPV10 (after tax) | AU$551m | US$408m |
| IRR (after tax) | 59% | |
| Cash cost of production (per tonne of concentrate) | AU$450 | US$333 |
| Capital cost (pre-production) | AU$144m | US$107m |
| Sustaining capital | AU$28m | US$21m |
| Basket sales price | AU$1,420 | US$1,051 |
| Payback (after-tax) from first production | 1.7 years | |
