Kingsland Minerals Advances Leliyn Graphite Project with Strong Drilling Results
Kingsland Minerals has reported robust infill drilling outcomes at its Leliyn Graphite Project, setting the stage for an upgrade to Indicated Mineral Resources and a forthcoming Scoping Study. The recent strategic investment by Quinbrook Infrastructure Partners bolsters the project's development trajectory, particularly for downstream processing.
- Infill drilling returns high-grade graphite intercepts up to 120m @ 9.2% TGC
- Aim to upgrade 194.6mt @ 7.3% TGC Inferred Resource to Indicated category
- Scoping Study to assess economic viability of flake graphite concentrate production
- Quinbrook Infrastructure Partners becomes cornerstone shareholder and offtake partner
- Bulk graphite concentrate sample dispatched to Germany for advanced test work
Strong Infill Drilling Results
Kingsland Minerals Ltd (ASX: KNG) has announced compelling infill drilling results from its Leliyn Graphite Project in the Northern Territory, reinforcing the project's status as one of Australia's most significant graphite deposits. The recent drilling campaign, completed in November 2024, comprised 16 reverse circulation holes totaling 1,662 meters focused on a 600-meter strike length of the graphitic schist unit. Notably, intercepts included 120 meters at 9.2% Total Graphitic Carbon (TGC) from surface, with higher-grade zones exceeding 13% TGC.
Resource Upgrade and Scoping Study
The drilling results are expected to support an upgrade of the existing Inferred Mineral Resource of 194.6 million tonnes at 7.3% TGC to the Indicated category. This upgrade is a critical step in underpinning a Scoping Study that will evaluate the economic feasibility of producing flake graphite concentrate from the deposit. Previous metallurgical test work has demonstrated the potential to produce a high-purity concentrate of 94% TGC, a promising indicator for downstream processing and market acceptance.
Strategic Partnership with Quinbrook Infrastructure Partners
The advancement of the Leliyn project has been accelerated by the recent cornerstone investment from Quinbrook Infrastructure Partners, an infrastructure investor with a strategic interest in the graphite sector. Quinbrook's involvement includes an offtake agreement, providing Kingsland with both financial backing and a pathway to market. This partnership also supports the development of downstream graphite processing facilities in Darwin, enhancing the project's value chain integration.
Ongoing Metallurgical Testing and Market Context
Kingsland is finalizing the production of a bulk graphite concentrate sample, which is scheduled for dispatch to ProGraphite GmbH in Germany for comprehensive test work. This program includes spherical graphite production and electrochemical characterisation, essential for battery anode applications. The timing is opportune given the strengthening sentiment for non-Chinese graphite supply, with the US International Trade Commission expected to announce preliminary determinations on tariffs of up to 920% on Chinese graphite imports, potentially reshaping global supply dynamics.
Looking Ahead
While the current drilling and test work mark significant progress, further drilling is planned post-wet season to complete the intended 3,000-meter program. The results of the Scoping Study and ongoing metallurgical evaluations will be pivotal in defining the project's commercial trajectory. Kingsland's strategic positioning in a globally significant graphite resource, combined with its partnership with Quinbrook, positions the company well to capitalize on evolving market opportunities.
Bottom Line?
Kingsland's Leliyn project is poised for a resource upgrade and economic assessment amid shifting global graphite supply dynamics.
Questions in the middle?
- How will the upcoming Scoping Study influence Kingsland's development timeline and capital requirements?
- What are the potential impacts of US tariffs on Chinese graphite imports for Kingsland's market positioning?
- How will the results of the German metallurgical test work affect the feasibility of downstream processing?