BlackEarth Minerals soars as results of large-scale stage-2 pilot plant tests on Maniry graphite "exceed expectations"

BlackEarth Minerals NL’s (ASX:BEM) stage-2 large-scale pilot plant program has confirmed strong stage-1 results with grades of fixed carbon (FC) content of more than 95% reaffirming the potential of Maniry Graphite Project product as being highly attractive for downstream processing and feed for rapidly expanding electric vehicle markets. The tests that 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 are two weeks ahead of schedule. Shares up 54% Investors responded strongly with shares soaring as much as 54% to 20 cents intra-day. Further testing will continue throughout April 2021 with completion expected in May 2021. The results coincide with a recently released UBS Report that indicates massive growth in demand for graphite to meet EV market demand. “Significant commitment” Managing director Tom Revy said: “The board is delighted with the initial test results achieved at the BGRIMM, world-renowned graphite processing and design facility. “Undertaking this large-scale pilot test program is a significant commitment by BlackEarth and we were confident the program would achieve very positive results. “The outcomes to date have exceeded our expectations and only confirm the status of the Maniry project in Madagascar as being one that can produce world-class graphite concentrate that is highly suitable for the EV and battery markets as well as a range of other applications – all of which are in global demand”. Additional analysis of the jumbo and large flake results indicates that around 20% of graphite concentrate yields are classified as jumbo flake size – such product is in worldwide shortage and currently selling for in excess of US$1,750/tonne. Pilot program plan Under the contract with BGRIMM, the test program is planned to be completed in quarter two of 2021, and comprises the following: Stage 2 large-scale pilot test program will use approximately 60-70 tonnes of Maniry graphite material; The outcomes will be used to optimise the Maniry flowsheet, provide final equipment specifications, and the results will also provide significant input into the project’s final Environmental and Social Impact Assessment (ESIA); This program will also be used to generate substantial concentrate which will assist in finalising offtake and downstream arrangements; Results of the program will provide additional data that will be used as the company works toward the completion of its definitive feasibility study (DFS); and Yield and other positive results are also being used as the company seeks to update its project valuation to produce an updated robust and very strong financial model to underpin the projects funding and development. Demand growth Recent reports have indicated a current worldwide shortage of jumbo flake graphite and projected short-term shortage of all concentrate grades over the next few years. As a result, material price increases have occurred and are projected to continue to grow as the strong demand for concentrate exceeds supplies. Much of the demand for graphite relates to the ongoing growth and future demand for battery-powered and alternative energy.