from the ASX...The Large Scale Pilot test work commenced on Maniry mined material with significant work completed during and following the end of the quarter.
Mobilisation of technical personnel and planning continued for a drill program at the high grade Razafy NW area in Southern Madagascar, with drilling to commence in the short term.
Ongoing discussions continued with industry leading down-stream graphite producers, with the aim of finalising a development and production plan.
An airborne electromagnetic survey was completed for the Donnelly River Prospect; processing of data expected to be completed in mid-May.
Further refinement to the Stage 2 Pilot Plant design has continued over the past two weeks with very positive outcomes achieved.
Additional Testwork undertaken has focused on achieving even higher increases to concentrate grades with spectacular outcomes – results have demonstrated that over 31% of BEM’s product can be produced at an Fixed Carbon (“FC”) level above 96.5%.
Furthermore, test results achieved have indicated that the designed flowsheet can achieve an average FC level of 96.5% for all large and jumbo flake product testing, grades which are currently attracting significant price premiums in the graphite market.
These results further validate Maniry’s graphite product potential as highly attractive for downstream processing and feed for the rapidly expanding electric vehicle (“EV”) markets.
Further analysis of concentrate tests resulted in an average fixed carbon level of 96.77% for greater than 80% of the jumbo and large flake product tested - making this product some of the highest value graphite concentrate produced in the world.
Further testing will continue for remainder of April and May 2021 with a final report to be published thereafter.
Placement successfully completed and very well supported by new and existing investors.
Funds shall be applied towards completing the Company’s Definitive Feasibility Study (“DFS”).
A full-scale project development plan for Madagascar shall be fast tracked during 2021.
Funding will also allow the Company to conclude extensive drilling and exploration programs at its Maniry and other high-grade sites in Madagascar.
Concentrate from Stage 2 Pilot program shall be provided to Urbix Resources and LuxCarbon for testing and advancement of further offtake arrangement discussions.
Allocation of funding to be used in advancing downstream processing development plans.
Following the Placement, the Company’s cash balance has increased to circa $7.4million.
Stage 2 Large Scale Pilot Test Program is currently 2 weeks ahead of schedule.
Tests are being actively managed by BlackEarth’s executive team and conducted by World Leaders in the testing of graphite and development of flow sheet and plant design.
Initial results confirm earlier Stage 1 results - grades of fixed carbon (“FC”) content of over 95% reaffirming Maniry’s graphite product potential as highly attractive for downstream processing and feed for the rapidly expanding electric vehicle (“EV”) markets.
Additional analysis of the jumbo and large flake results indicate that approximately 20% of graphite concentrate yields are classified as jumbo flake size – such product is in world wide shortage and currently selling for in excess of US$1,750/mt.
Further testing will continue throughout April 2021 with completion expected in May 2021.
Recently released UBS Report indicates massive growth in demand for graphite to meet EV market demand.
BlackEarth and their German based graphite supply chain Partners, LuxCarbon GmbH, have joined the European Battery Alliance and pledge to provide industry support to the Alliance and their members.
The European Battery Alliance (“EBA”) was established by the European Commission in 2017 and has evolved to become one of the World leading industry groups focused on the development of the growing EV and Battery markets – estimated by EBA to be worth annually up to 250 billion Euro by 2025.
BlackEarth and Luxcarbon together have signalled their intention to support the alliance with significant industy experience and with plans to provide down stream processed products suitable to the EV market.
BlackEarth’s developed agreements and relationships in Germany and Europe provide it with a strategic advantage to further grow their business in conjunction with EBA members.
Significant concentrate from the current Stage 2 Pilot Program will be provided to certain EBA members for confirmation of the suitability of our product for the EV market.
BlackEarth to commence a 3 month 60-70 tonne large scale pilot metallurgical test program on its Maniry Graphite Project material.
The results of the program will be used as part the Company’s current DFS to finalise all processing related parameters (process design criteria).
Graphite concentrate produced will be used to finalise binding offtake and downstream arrangements.
Successful completion of the Program will assist BlackEarth to fastrack project funding and the commencement of plant construction.
Test work results to further confirm the world class status of the Maniry Graphite Project.
An Agreement has been signed with World Leaders in the procurement, supply and marketing of graphite concentrate and downstream graphite products, LuxcarbonGmbH, Germany (“Luxcarbon”).
Luxcarbon is currently one of Germany’s major suppliers of Graphite & Carbon products to top tier suppliers of Volkswagen, Mercedes, Ford and to major chemical corporations.
BlackEarth, as part of its MOU commitment with Urbix Inc, will use this to secure the supply of up to 25,000t of high grade product to assist Urbix in completing their plant development.
The supply arrangement will continue whilst BlackEarth fast tracks the development of its own high grade, large scale graphite properties in Madagascar, which will then form a regular supply to its proposed downstream graphite operations.
The Agreement also provides that BlackEarth will sell up to 25,000 mtpa of downstream products from its operations and JV operations into the European market to meet the growing demand for battery EV material.
Luxcarbon will also provide technical advisory services to BlackEarth on the production of downstream products from the Company’s proposed facilities in Australia and / or Madagascar.
Luxcarbon will work closely with the BlackEarth Executive team to further develop supplychain, logistics and sales channels for their downstream graphite production into the expanding EV and Battery markets.
An MOU has been signed with Urbix, Inc (“Urbix”) - a US based Company leading the development of EV related graphite products.
BlackEarth will fastrack the development of its Madagascan project sites and source other high grade Graphite concentrate to supply Urbix’s downstream processing facility in the USA.
Urbix is globally recognised for its graphite purification processes that can develop specialised graphite product for the globally expanding EV market
The BlackEarth Board and Urbix plan to develop an Operational Joint Venture in the future – the proposed JV combines Urbix’s technical excellence with BlackEarth’s substantial market, commercial and graphite operational experience.
BlackEarth is in the process of concluding concentrate supply agreements to meet Urbix’s intital demands and the proposed JV’s initial production demands. This includes off take agreements for the supply of downstream products to a range of global buyers.
A proposed JV, still in discussion, can position BlackEarth as a globally significant supplier of downstream graphite products and forms part of BlackEarth’s strategy to fast track the development of its Maniry Graphite Project in Madagascar.
Planning advanced for a drill program at the high grade Razafy NW area in Southern Madagascar, with activity expected to commence in the short term.
Discussions continued with industry leading down-stream graphite producers, with the aim of finalising a development and production plan.
Pilot test work planning continued for the Maniry Project and is now in an advanced stage.
First Phase of Donnelly River Ni-Cu-PGM Project exploration confirmed the existence of Mafic-ultramafic rocks with geochemical samples collected for review.
An airborne electromagnetic survey was designed for Donnelly River with plans to commence during the March 2021 Quarter.
Successful completion of the Share Placement and Share Purchase Plan ("SPP”) raising in excess of $1.8m.
Founding Non-Executive Director, George Bauk, appointed Chairman and experienced graphite executive, David Round, appointed to the Board as Finance Director.
Cash reserves in excess of $2m as at 31 December 2020, well positioning BlackEarth for further growth in 2021.
OPERATIONAL HIGHLIGHTS
CORPORATE HIGHLIGHTS
Placement completed oversubscribed by over 50%; Funds will be applied to exploration activities at the Maniry and Donnelly River Projects; Pilot work will be completed to formalise further offtake arrangement discussions; Ongoing testing and evaluation of downstream processing opportunities with overseas parties will be quickly advanced; BEM will provide a detailed market update in the near term on further developments.
Binding MOU with RHI Magnesita (RHIM). RHIM and BEM to work together to produce “tailor-made” natural graphite concentrate samples and products for RHI Magnesita. The MOU follows positive initial test work undertaken by RHI Magnesita on graphite from BEM’s Maniry Project in Southern Madagascar.
OPERATIONAL Bulk material from the Maniry Project dispatched to BGRIMM. Stage 2 test work results to be used to optimise the Maniry flow sheet. Results will provide BFS engineers the final process design criteria (PDC) to undertake final engineering design works in 2H 2020. Preparations underway for a drilling program for the high grade Razafy NW area expected to commence 2H 2020.
