Metals Australia Limited has reported a 3.3-fold increase in its Lac Carheil Graphite project resource, now totaling 50 million tonnes at 10.2% graphite content, while progressing key studies for a battery anode material plant in Quebec.
- Lac Carheil Mineral Resource expanded to 50 Mt @ 10.2% TGC
- Graphite recovery improved to 96.7%, boosting project economics
- Battery Anode Material plant design advanced with Sept-Îles selected as preferred location
- Additional precious and critical minerals identified within graphite zones
- Australian projects progressing with drilling completed and metallurgical tests ongoing
Resource Expansion Sets New Benchmark
Metals Australia Limited (ASX, MLS) has unveiled a substantial upgrade to its flagship Lac Carheil Graphite project in Quebec, Canada, reporting a Mineral Resource Estimate (MRE) of 50 million tonnes at 10.2% total graphitic carbon (TGC). This represents a 3.3-fold increase over the previous resource, underpinning the project’s emergence as one of the world’s leading graphite deposits. The new resource is based on extensive drilling over just one of ten identified graphite trends, highlighting significant upside potential for further growth.
Enhanced Recovery and Economic Prospects
Alongside the resource expansion, metallurgical test work has delivered a marked improvement in graphite recovery, achieving 96.7% compared to 86.3% used in the 2021 scoping study. This enhancement is expected to reduce mining and processing costs by increasing concentrate yield per tonne of ore. The improved recovery parameters are being incorporated into the ongoing prefeasibility study (PFS), which also includes mine design and environmental assessments led by DRA Americas and Norda Stelo respectively.
Battery Anode Material Plant Advances
Metals Australia is progressing a Project Economic Assessment (PEA) for a Battery Anode Material (BAM) refinery, with Dorfner Anzaplan conducting metallurgical test work in Germany and engineering design in the UK. The company has provisionally selected Sept-Îles, Quebec, as the preferred site for the BAM plant, benefiting from excellent port access and infrastructure connectivity. Test work has produced spherical purified graphite (SPG) products with exceptional purity (99.99% fixed carbon) and a high conversion yield of 72%, positioning the project well to supply premium battery-grade graphite to North American and European markets.
Broader Mineralisation and Strategic Funding
Additional assay results have revealed the presence of precious and critical minerals such as gallium, silver, copper, vanadium, and nickel within the graphite zones. These minerals will be recovered alongside graphite, potentially adding value and reducing tailings disposal costs. Metals Australia is actively pursuing Canadian government infrastructure funding to support power supply and transport corridor development, critical to advancing the project through preconstruction phases.
Australian Projects and Financial Position
In Australia, drilling at the Warrego Copper-Gold project in the Northern Territory has been completed, with assay results pending. Meanwhile, metallurgical test work continues at the Manindi Vanadium-Titanium-Magnetite project in Western Australia, with permitting for follow-up drilling substantially complete. The company ended the quarter with $6.82 million in cash, after spending $1.51 million on exploration and studies, supported by anticipated Canadian tax credits that enhance the financial outlook.
Geopolitical Context and Market Implications
Metals Australia is monitoring geopolitical developments, particularly US-China trade tensions impacting graphite supply chains. With North America heavily reliant on China for purified graphite anode materials, the Lac Carheil project’s strategic location and scale position it as a potential cornerstone for secure domestic supply in the evolving battery materials market.
Bottom Line?
As Metals Australia advances its world-class graphite resource and downstream processing plans, the coming quarters will be pivotal in defining its role in the critical minerals supply chain.
Questions in the middle?
- How will the pending assay results from Warrego influence Metals Australia’s Australian portfolio strategy?
- What impact will Canadian government budget announcements have on infrastructure funding for Lac Carheil?
- Can the company further improve graphite recovery and battery anode material performance in ongoing test work?