Leliyn Graphite Project Targets 662,000t Concentrate with $651/t Operating Cost

A Promising Step for Leliyn

Kingsland Minerals Ltd (ASX, KNG) has released a robust scoping study for its Leliyn Graphite Project in the Northern Territory, positioning the deposit as a potentially globally competitive graphite producer. The study, based on a 1.5 million tonnes per annum processing plant, forecasts a 6.9-year processing period producing approximately 662,000 tonnes of graphite concentrate.

The project’s initial capital expenditure is estimated at AUD 343 million, with operating cash costs (C1) projected at a competitive USD 423 per tonne of concentrate. This cost positioning places Leliyn favourably on the global graphite cost curve, especially outside China, where many producers face higher costs.

Financial and Operational Highlights

The study anticipates total life-of-mine revenues of around AUD 1.05 billion and an operating pre-tax cash margin of AUD 563 million. The payback period is estimated at four years from the start of production, which is scheduled to commence in 2031 following a two-year construction phase.

Mining will be conducted via an open pit with a low strip ratio of 0.8, 1, supporting efficient extraction. The processing plant will employ conventional flotation techniques to produce a fine flake graphite concentrate with an average grade of 7.28% total graphitic carbon.

Scope for Growth and Optimization

Importantly, the scoping study highlights significant opportunities for further optimization. These include potential increases in production rates, reductions in capital and operating costs, and expansion of the mineral resource base through additional drilling. The graphite host schist extends beyond current resource boundaries, suggesting scope for a longer mine life and higher output.

Energy cost reductions are also being explored, including the possibility of utilising nearby gas infrastructure and renewable energy sources to lower power expenses, which currently assume mains electricity at AUD 0.19 per kWh.

Funding and Next Steps

Kingsland anticipates funding the project through a combination of debt and equity, with potential support from government initiatives such as the Northern Australia Infrastructure Fund. To date, the company has raised AUD 6.2 million to advance the project and remains confident in its ability to secure further capital when required.

While no Ore Reserves have yet been declared, the company plans further drilling to upgrade resource classifications and refine project parameters. The scoping study’s +/-35% accuracy level underscores that more detailed feasibility studies and environmental approvals will be necessary before final investment decisions.

Strategic Positioning in Critical Minerals

Leliyn’s development aligns with Australia’s strategic push into critical minerals, particularly graphite, which is essential for battery technologies and the energy transition. Kingsland’s existing off-take agreement with Quinbrook Infrastructure Partners further supports the project’s commercial prospects.

Overall, the scoping study establishes a strong foundation for Leliyn’s advancement, balancing technical feasibility with promising economics and a clear pathway to scale.