Leliyn Graphite Project Set to Yield A$1.05 Billion with 99.97% Pure Spherical Graphite

Scoping Study Affirms Economic Potential

Kingsland Minerals (ASX – KNG) has released its September 2025 quarterly report, spotlighting a pivotal scoping study for the Leliyn Graphite Project in the Northern Territory. The study outlines a robust development plan featuring a bulk open pit mining operation paired with a 1.5 million tonnes per annum processing plant designed to produce high-quality graphite concentrate. With an estimated 6.9-year processing duration, Leliyn is projected to generate approximately 662,000 tonnes of recovered graphite concentrate, translating to average annual production near 95,000 tonnes.

Financially, the project forecasts revenues of around A$1.05 billion over its life, with a pre-tax operating cash margin of A$563 million. Operating costs are competitive, with an average cash cost of A$651 per tonne of graphite concentrate and an all-in sustaining cost of A$796 per tonne. The initial capital outlay is estimated at A$343 million, positioning Leliyn as a potentially low-cost, mid-scale graphite producer.

Breakthrough in Battery-Grade Graphite Production

Complementing the scoping study, metallurgical testwork conducted by ProGraphite GmbH in Germany has successfully produced purified spherical graphite (PSG) from Leliyn concentrate with a remarkable purity of 99.97% graphitic carbon. This purity level surpasses the typical threshold required for battery anode materials, underscoring Leliyn’s potential to supply the burgeoning electric vehicle and energy storage markets.

The purification process involved micronizing and spheronising graphite flakes, followed by low-temperature alkaline baking and acid washing. The ability to achieve such high purity using relatively low-temperature methods is particularly encouraging, suggesting cost-effective downstream processing.

Exploring Gallium By-Product Potential

In a strategic diversification effort, Kingsland has advanced testwork targeting gallium extraction as a by-product from the graphite mining process. Analysis by CSIRO identified muscovite mica as the primary host mineral for gallium within the Leliyn deposit, with biotite mica as a secondary host. Ongoing flotation tests aim to concentrate these micas to assess the feasibility of gallium recovery, which could add a valuable revenue stream if successful.

Corporate Developments and Funding

To support ongoing development, Kingsland completed a placement raising approximately A$897,000 and a Share Purchase Plan (SPP) raising an additional A$500,000. The company’s largest shareholder, Quinbrook Asset Management, participated significantly in the placement, subject to shareholder approval. Additionally, Kingsland appointed Anthony Latimer, a seasoned corporate lawyer with four decades of experience, as non-executive chairman, signaling strengthened governance as the project advances.

Cash reserves stood at A$0.53 million at quarter-end, with the company actively managing expenditures on exploration and administration. Exploration activities were limited during the quarter pending scoping study completion, with plans underway for future programs at Lake Johnston and other projects.

Looking Ahead

Kingsland Minerals is poised to transition from study to development, leveraging its promising scoping study results and metallurgical breakthroughs. The company’s ability to produce battery-grade spherical graphite and explore gallium by-product opportunities positions it well within the evolving energy minerals sector. Upcoming milestones will include advancing project approvals, refining processing designs, and securing further funding to underpin construction and production phases.