Lithium Energy has acquired 100 per cent of the Mt Dromedary natural graphite project in Queensland from NOVONX.
The worth $2 million deal will see the deposit directly adjoin to Lithium Energy’s Burke graphite project, with the acquisition consolidating into a “world-class” combined inventory of 4.42 million tonnes (Mt).
The inventory comprises of three deposits – Mt Dromedary, Burke and Corella – with the former having a total indicated and inferred mineral resource of 12.7Mt graphite at 14.5 per cent graphite for a total of 1.83Mt of contained graphite.
The Burke deposit has a mineral resource of 9.1Mt at a grade of 14.4 per cent graphite for 1.31Mt of contained graphite, with Corella’s mineral resource sitting at 13.5Mt at 9.5 per cent graphite for 1.3Mt of contained mineral.
The combination of the adjoining Mt Dromedary and Burke deposit creates the potential for “significant operational synergies and economies of scale” in the development of the vertically-integrated battery anode material manufacturing facility, Lithium Energy said in statement.
“The consolidation of the adjacent high-quality Burke and Mt Dromedary graphite deposits will create a world-class inventory of high-grade graphite to support the company’s plans to develop an Australian-based, vertically integrated battery anode material business,” Lithium Energy executive chairman William Johnson said.
“With Lithium Energy now successfully securing a 100 per cent interest in the same combined graphite assets, the company will now consider a range of potential development pathways and alternative funding strategies for BAM development.”
In-fill resource development drilling and diamond core on the Burke and Mt Dromedary tenements are set to be conducted to process an improved combined mineral resource for the two deposits.