Bass Metals (ASX:BSM) has crossed a major milestone by signing a non-binding sale agreement for 50% of its forecast stage 1 premium graphite concentrate production for 2018.
Possehl Erzkontor GmbH & Co., based in Europe, intends to purchase 3,000 tonnes per annum of graphite concentrates from the company, for a period of three years.
The concentrates will be produced at Bass Metals’ fully owned Graphmada Graphite Mine located in Madagascar.
The material will be sold by Possehl into refractories, foundries and crucibles markets throughout Europe at a premium pricing compared to other market segments such as battery applications.
Bass is continuing to make progress towards refurbishing the Graphmada mine with the aim of re-commissioning this calendar year as a profitable producer of high purity graphite concentrates.
The Graphmada mine has 40-year mining permits in place, containing four premium quality, large flake, graphite deposits.
The producing mine is currently being upgraded to 6000 tonnes per annum with improved final graphite concentrate grades, in order to grow cash margins.
Bass is planning to expand production to greater than 20,000 tonnes per annum of graphite concentrate by late 2018.
Incidentally, the company recently confirmed outcropping pegmatites with grades up to 7.08% lithium at the Millie’s Reward lithium project in Madagascar.