Siviour has proven reserves of 15.8 million tonnes at 8.4% total graphitic carbon for 1.3Mt contained graphite and total reserves of 51.5Mt at 7.4% for 3.8Mtpa once probable reserves are included.

 

Resources are estimated at 87.4Mt at 7.5% TGC for 6.6Mt.

 

Nachu has proven reserves at 50.5Mt grading 4.6% TGC for a 2.32Mt.

 

Siviour also has the benefit of sitting within an advanced, first world economy, while Nachu sits within a developing nation that has upended its mining legislation in recent years, creating ongoing sovereign risk issues.

 

Renascor managing director David Christensen said the upgraded reserves provided additional confidence in the size and quality of Siviour as a consistent source of high-quality graphite that could support a mine life of more than 40 years.

 

Further, recent tests show the ore can be refined into purified spherical graphite at some of the lowest costs of any graphite development in the world, suitable for use in lithium-ion batteries with grades of 99.97% carbon.

 

Encouragingly, Siviour is also suitable for processing using a more environmentally-friendly caustic roast purification process than the traditional the more polluting hydrofluoric acid method generally used in China, which dominates the graphite space.

 

Christensen said Renascor continued to pursue offtake and finance discussions for an integrated mine and battery anode material project, and that discussions were progressing well.

 

The company completed a definitive feasibility study last November estimating a A$118 million initial development generating average earnings of about $50 million in the early years and $83 million per annum over the project life, based on annual production of 83,400tpa. Cash costs were estimated at US$344/t.

 

Renascor believes Siviour is positioned to help meet an emerging graphite supply gap, although the lithium, battery and electric vehicle sectors have been savaged by the effects of the COVID-19 inspired economic slowdown.

 

By 2023, battery demand was projected to increase by 500%, and Renascor believes there is a "paradigm-shifting event" starting to impact graphite markets, and that it is uniquely positioned to benefit as a viable alternative to Chinese supply as demand for EVs recovers.

 

Renascor shares were up 8% today to 1.3c, with the stock having traded between 0.4-1.8c over the past year.