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

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.

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