Proactiveinvestors Australia Hexagon Resources Ltd https://www.proactiveinvestors.com.au Proactiveinvestors Australia Hexagon Resources Ltd RSS feed en Mon, 22 Jul 2019 03:33:56 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Hexagon Resources’ substantial shareholder UBS increases stake ]]> https://www.proactiveinvestors.com.au/companies/news/223808/hexagon-resources-substantial-shareholder-ubs-increases-stake-223808.html Hexagon Resources Ltd (ASX:HXG) has received a further show of confidence from UBS Group AG and its related entities, which have increased their holding to 6.99% from 5.78%.

The company is pursuing a dual path to achieve its objective of establishing a cash flow positive business in the graphite industry and ultimately control an integrated upstream to downstream business.

 

Hexagon aims to develop a standalone graphite purification and processing plant (GPPP) at the McIntosh joint venture project in WA.

The company recently revealed a positive scoping study which generated strong financial results highlighting the opportunity to deliver impressive margins by value-adding in the downstream graphite supply chain.

The GPPP would manufacture high-specification graphite products, such as materials to be used in battery and technical/industrial applications.

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Fri, 12 Jul 2019 17:10:00 +1000 https://www.proactiveinvestors.com.au/companies/news/223808/hexagon-resources-substantial-shareholder-ubs-increases-stake-223808.html
<![CDATA[Media files - Hexagon Resources graphite scoping study a highlight for June quarter ]]> https://www.proactiveinvestors.com.au/companies/stocktube/14071/hexagon-resources-graphite-scoping-study-a-highlight-for-june-quarter-14071.html Fri, 12 Jul 2019 14:34:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/14071/hexagon-resources-graphite-scoping-study-a-highlight-for-june-quarter-14071.html <![CDATA[News - Hexagon Resources pursuing dual strategy to establish cash flow positive graphite business ]]> https://www.proactiveinvestors.com.au/companies/news/221602/hexagon-resources-pursuing-dual-strategy-to-establish-cash-flow-positive-graphite-business-221602.html Hexagon Resources Ltd (ASX:HXG) is pursuing a dual path to achieve its objective of establishing a cash flow positive business in the graphite industry and ultimately control an integrated upstream to downstream business:

• Upstream - focussed around the McIntosh deposits and joint venture, funded by Mineral Resources Ltd (ASX:MIN) for the past 12 months and the recently acquired Alabama mineral claims; and

• Downstream - employing innovative flow sheet and cutting-edge technologies to supply a variety of high-end products into deep, premium priced markets.

Upstream: Hexagon Resources updates McIntosh flake graphite resource; 81% classified as indicated

The current focus of the McIntosh joint venture partners is metallurgical testwork to define a process flowsheet.

Testwork, planned and commissioned by Hexagon, is currently underway in China at a research facility that is highly experienced in a wide spectrum of graphite processing, from initial concentration to downstream purification, micronising and spheroidising.

Subject to the outcomes of this work, the joint venture plans to follow-up with locked-cycle and pilot scale flotation tests to generate process design criteria as part of the feasibility study.

Downstream: Hexagon Resources intends moving to feasibility study for graphite processing plant

Hexagon’s recent downstream scoping study to establish a Graphite Purification and Processing Plant (GPPP) on a standalone basis clearly highlights a compelling business investment case.

Capturing additional, significant margins from further processing of graphite concentrates has always been an important part of the commercialisation strategy and, following the scoping study, represents a significant market opportunity.

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Thu, 06 Jun 2019 13:01:00 +1000 https://www.proactiveinvestors.com.au/companies/news/221602/hexagon-resources-pursuing-dual-strategy-to-establish-cash-flow-positive-graphite-business-221602.html
<![CDATA[News - Hexagon Resources in trading halt pending McIntosh Joint Venture news ]]> https://www.proactiveinvestors.com.au/companies/news/221434/hexagon-resources-in-trading-halt-pending-mcintosh-joint-venture-news-221434.html Hexagon Resources Ltd (ASX:HXG) has been granted a trading halt by the ASX , pending a material announcement regarding the McIntosh Joint Venture.

The trading halt will remain until the beginning of normal ASX trading on Thursday, June 6, or when an announcement is released to the market, whichever occurs earliest.

READ: Hexagon Resources intends moving to feasibility study for graphite processing plant

The company aims to proceed to a feasibility study for its proposal to develop a standalone graphite purification and processing plant (GPPP).

This follows a positive scoping study which generated strong financial results highlighting the opportunity to deliver impressive margins by value-adding in the downstream graphite supply chain.

Potential development of the GPPP is separate to Hexagon’s interest in the McIntosh Flake Graphite Project in northern WA at which Mineral Resources Limited (ASX:MIN) has earned a 51% equity.

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Tue, 04 Jun 2019 14:39:00 +1000 https://www.proactiveinvestors.com.au/companies/news/221434/hexagon-resources-in-trading-halt-pending-mcintosh-joint-venture-news-221434.html
<![CDATA[News - Hexagon Resources intends moving to feasibility study for graphite processing plant ]]> https://www.proactiveinvestors.com.au/companies/news/220465/hexagon-resources-intends-moving-to-feasibility-study-for-graphite-processing-plant-220465.html Hexagon Resources Ltd (ASX:HXG) aims to proceed to a feasibility study for its proposal to develop a standalone graphite purification and processing plant (GPPP).

This follows a positive scoping study which generated strong financial results highlighting the opportunity to deliver impressive margins by value-adding in the downstream graphite supply chain.

The GPPP would manufacture high-specification graphite products, such as materials to be used in battery and technical/industrial applications.

Strong financial results

Financial results include a post-tax Net Present Value (NPV) ranging from $594 million to $958 million and a post-tax Internal Rate of Return (IRR) ranging from 32% to 49%.

These figures are calculated on an unleveraged basis and are dependent on the site selected.

A snapshot of the main outcomes of the GPPP scoping study.

Two site options

The study considered various options for development of the plant along with sites at Geraldton in Western Australia and Chelan County in Washington, USA.

As a result, the preferred option based on post-tax NPV and IRR is Chelan County, which also had lower electricity costs and is closer to premium markets in the USA and Europe.

READ: Hexagon Resources tests show potential for standalone downstream graphite processing

Potential development of the GPPP is separate to Hexagon’s interest in the McIntosh Flake Graphite Project in northern WA at which Mineral Resources Limited (ASX:MIN) has earned a 51% equity.

MIN is required to fund and undertake all activities to bring this project into commercial production, subject to a positive feasibility study, which is underway.

The GPPP scoping study considered McIntosh as a potential source of flake concentrates and Hexagon will continue to evaluate the Geraldton site based on proximity to the project and other sources.

READ: Hexagon Resources updates McIntosh flake graphite resource; 81% classified as indicated

There are three areas in which the GPPP would produce high-specification graphite products:

Expandable line – products derived from larger sized purified flake material and sold as an expandable precursor as a higher purity material. These would be suitable for high-tech foils, gaskets and seals for use in the nuclear industry or fuel cell applications.

Industrial line – products derived from mid-sized purified flake into four product segments: synthetic diamond precursor; conductivity enhancement materials for batteries and electrodes; ultra-fine grain material for specialised coatings; and mould release agent for foundries.

Battery materials – derived from mainly finer-sized purified flake as well as ‘undersize’ from the above lines consisting mainly of battery anode material comprising standard uncoated spherical graphite for lithium-ion battery anodes and some speciality spherical and ultra-fine materials for industrial uses.

Focusing on these areas would enable Hexagon to produce a dozen products for a variety of markets.

The GPPP project is designed in three phases to gain market acceptance for the various products by customers:

Phase I: Qualification – producing up to 1,000 tonnes per annum to send to customers; Phase II: First commercial phase with annual production at 20,000 tonnes; and Phase III: Second commercial stage, annual production increased to 49,000 tonnes. 

Based on the scoping study outcomes, Hexagon plans to move to a feasibility study to enable an initial financial investment decision on the development of phase I in late 2019. 

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Fri, 17 May 2019 10:11:00 +1000 https://www.proactiveinvestors.com.au/companies/news/220465/hexagon-resources-intends-moving-to-feasibility-study-for-graphite-processing-plant-220465.html
<![CDATA[Media files - Hexagon Resources' scoping study confirms viability of process plant for high-spec graphite products ]]> https://www.proactiveinvestors.com.au/companies/stocktube/13393/hexagon-resources--scoping-study-confirms-viability-of-process-plant-for-high-spec-graphite-products-13393.html Thu, 16 May 2019 22:02:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/13393/hexagon-resources--scoping-study-confirms-viability-of-process-plant-for-high-spec-graphite-products-13393.html <![CDATA[News - Hexagon Resources gains new substantial shareholder in UBS Group ]]> https://www.proactiveinvestors.com.au/companies/news/219523/hexagon-resources-gains-new-substantial-shareholder-in-ubs-group-219523.html Hexagon Resources Ltd (ASX:HXG) has a new substantial shareholder in UBS Group AG and its related entities which have acquired a 5.78% stake.

Initial shareholder status was reached on April 29, 2019, with the acquisition of about 16.86 million shares.

READ: Hexagon Resources tests show potential for standalone downstream graphite processing

Hexagon’s ongoing test work is delivering excellent technical outcomes which have potential to underpin a standalone downstream graphite processing business.

Extensive test programs are focused on particle milling and micronisation technologies and the production of ultra-fine materials using graphite from the McIntosh joint venture project in WA.

This work is also assessing the utilisation of these milled products in new-age batteries.

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Thu, 02 May 2019 12:24:00 +1000 https://www.proactiveinvestors.com.au/companies/news/219523/hexagon-resources-gains-new-substantial-shareholder-in-ubs-group-219523.html
<![CDATA[News - Hexagon Resources tests show potential for standalone downstream graphite processing ]]> https://www.proactiveinvestors.com.au/companies/news/219221/hexagon-resources-tests-show-potential-for-standalone-downstream-graphite-processing-219221.html Hexagon Resources Ltd’s (ASX:HXG) ongoing test work is delivering excellent technical outcomes which have potential to underpin a standalone downstream graphite processing business.

Extensive test programs are focused on particle milling and micronisation technologies and the production of ultra-fine materials using graphite from the McIntosh joint venture project in WA.

This work is also assessing the utilisation of these milled products in new-age batteries.

READ: Hexagon Resources updates McIntosh flake graphite resource; 81% classified as indicated

Hexagon has a strategy of manufacturing and selling a diverse range of graphite materials into several different market segments including batteries and various industrial applications.

Milling trials have shown rapid particle size reductions to a nominated median D50 size specification, which infer industry sector-leading milling costs.

These trials demonstrate that the milling cost advantages of McIntosh flake compared to typical African or Chinese sourced flakes is likely to be 2-3 times lower for hammer milling and about two times lower for air milling.

The various size classifications of the micronised products have wide application in a range of battery chemistries as conductivity enhancement materials and the ultra-fine, high purity materials at sub 5 μm sizings as coatings and dispersions in battery and industrial applications.

Hexagon said this was a very high-value market, served by a very limited number of manufacturers.

Production of synthetic diamonds

The outcome of the tests also includes the ability to produce synthetic diamonds from McIntosh flake.

These diamonds are currently of technical grade quality but there is also the potential to produce gemstone quality, subject to the highest purity precursor material.

A significant market exists for quality synthetic diamond precursor to underpin industrial applications for technical grade diamonds.

Appearance of synthetic diamonds after synthesis - (a) billets of graphite, unreacted catalyst and diamond; (b) large crystals  

of cultured diamond embedded into the middle of the billet; (c) synthetic diamond dust before gold sputtering.

Outcomes from the company’s test programs will be fed into an ongoing downstream scoping study which is examining the viability of a standalone downstream graphite products manufacturing business.

Market investigations were undertaken for the various planned graphite products focusing on specifications, utilisation, market depth and pricing.

This has resulted in compilation of a conservative pricing matrix for the scoping study.

READ: Hexagon Resources leverages 5-nines graphite purity for downstream refining business

The scoping level assessment of the downstream business assumed is regarded by the company as a fully autonomous, long-term industrial business.

Hexagon plans to utilise its reported graphite concentrate feedstock price of US$1,504 per tonne highlighting its goal that this would be a standalone business, securing feedstock at arm’s length commercial rates.

Market opportunities

Product marketing assumptions in the study are being based on a vast body of ongoing technical work commissioned by Hexagon, which is highlighting market opportunities in the USA and Europe as well as in Japan, Korea and China.

It is a highly concentrated market space with many of the premium end sectors supplied by just a handful of manufacturers.

READ: Hexagon Resources has McIntosh graphite resource update and scoping study in sight

Tests to date support Hexagon’s plans to manufacture a range of high-end graphite products into a diverse group of value-added industry segments, subject to ongoing positive test work and feasibility study.

Recognising the marketing challenges ahead, the product prices to be modelled are well skewed toward the lower half of the estimated product price range.

Hexagon has a 49% interest in the McIntosh Joint Venture, which is the subject of a feasibility study being undertaken by 51% partner, Mineral Resources Limited (ASX:MIN).

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Mon, 29 Apr 2019 15:24:00 +1000 https://www.proactiveinvestors.com.au/companies/news/219221/hexagon-resources-tests-show-potential-for-standalone-downstream-graphite-processing-219221.html
<![CDATA[Media files - Hexagon Resources' updated McIntosh resource provides volume for critical metallurgical work ]]> https://www.proactiveinvestors.com.au/companies/stocktube/12882/hexagon-resources--updated-mcintosh-resource-provides-volume-for-critical-metallurgical-work-12882.html Thu, 04 Apr 2019 22:43:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/12882/hexagon-resources--updated-mcintosh-resource-provides-volume-for-critical-metallurgical-work-12882.html <![CDATA[News - Hexagon Resources updates McIntosh flake graphite resource; 81% classified as indicated ]]> https://www.proactiveinvestors.com.au/companies/news/217591/hexagon-resources-updates-mcintosh-flake-graphite-resource-81-classified-as-indicated-217591.html Hexagon Resources Ltd (ASX:HXG) has revealed an updated resource estimate for the McIntosh flake graphite joint venture project (MJV) in Western Australia.

The MJV resource now totals 23.8 million tonnes grading 4.5 % total graphitic carbon (TGC), which is an increase of 12% in contained graphite and a 42% increase in material classified as indicated.

MJV resource (above 3% TGC cut-off grade)

The updated resource estimate was undertaken by Mineral Resources Ltd (ASX:MIN), the manager of MJV (51% MinRes and 49% Hexagon).

Hexagon managing director Mike Rosenstreich said: “This revised resource estimate has significantly improved the confidence of the total resource within the project whilst achieving a modest 12% increment and maintaining the grade.

“This update will feed into the feasibility study currently being undertaken by MinRes.

“Subject to a positive feasibility study, Hexagon’s position is to get McIntosh into production as quickly as possible.

“Following that, we will systematically carry out heritage clearance to prioritise further targets for drill testing to verify the project life potential as highlighted by the Exploration Target estimate.”

Hexagon completed a systematic review of the exploration target estimate using new data from drilling and improved geological understanding on controls of mineralisation.

The revised exploration target estimate is 50 to 100 million tonnes grading 2% to 5% TGC with contained graphite ranging from 1 to 5 million tonnes, excluding the new mineral resource.

Hexagon will now focus on key targets like Marlin, as heritage clearance and environmental surveys are undertaken and areas become available for drilling.

 

The McIntosh Joint Venture’s other important focus is updating key technical parameters such as the flake size distribution for each of the mineral resources.   

As more sample material has become available, more effort is being directed at characterising the flake size distribution for each deposit, which is an important technical and economic parameter of the project.

READ: Hexagon Resources leverages 5-nines graphite purity for downstream refining business

Whilst Hexagon’s focus is very much on its downstream business development and providing support as required on the MJV activities, the company is increasing its presence in the US, leveraging off existing important technical relationships.

This is planned as a lead-in for McIntosh products and could include utilising US-sourced graphite, from Charge Minerals, to fast-track the establishment of a Hexagon brand.

This initiative complements and enhances the company’s strong network into Japan, South Korea, Taiwan and China.

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Mon, 01 Apr 2019 15:34:00 +1100 https://www.proactiveinvestors.com.au/companies/news/217591/hexagon-resources-updates-mcintosh-flake-graphite-resource-81-classified-as-indicated-217591.html
<![CDATA[News - Hexagon Resources expects drill results will add to McIntosh graphite resource ]]> https://www.proactiveinvestors.com.au/companies/news/215370/hexagon-resources-expects-drill-results-will-add-to-mcintosh-graphite-resource-215370.html Hexagon Resources Ltd (ASX:HXG) has received positive drilling results from mineral resource zones and exploration targets within the McIntosh joint venture graphite project in the east Kimberley of WA.

The drilling was undertaken at the mineral resource areas of Emperor and Wahoo in order to collect metallurgical samples and increase confidence.

This program was also designed to test two exploration prospects available for drilling - Mahi Mahi and Threadfin.

McIntosh joint venture partner Mineral Resources Limited (ASX:MIN) completed the data compilation for the program, which comprised 10,672.9 metres of drilling in late October 2018.

The JV expects an updated mineral resource estimate will be completed in mid-March.

Metallurgical sample results

To advance concentrate marketing activities, development of the flow sheet and downstream processing test work, it is necessary to have access to large quantities of mineralised samples.

The JV now has a sample inventory of nearly 14 tonnes related to the mineral resources and nearly 1 tonne from the exploration prospects.

Resource drilling

Drilling has provided important sample material and generated several significant mineralised intersections from infill and extensional drill tests.

The mineralisation trends around a major north-plunging regional anti-form with Emperor on the southeast limb and Wahoo on the northwest limb.

 

 

Emperor is the main mineral resource under evaluation as part of the feasibility study with notable intersections including:

8 metres at 9.1% total graphitic carbon (TGC) from 140 metres;

18 metres at 7.3% from 113 metres; and

53 metres at 6.2% from 138 metres.

The Wahoo prospect returned the following:

6 metres at 6.6% TGC from 69 metres;

6 metres at 6.4% from 50 metres; and

3 metres at 7% from 31 metres.

READ: Hexagon Resources leverages 5-nines graphite purity for downstream refining business

Drilling of exploration targets was restricted to Threadfin and Mahi Mahi due to limited heritage clearance surveys, however, further surveys are planned for later this year to open up new prospects for testing.

MinRes is undertaking the following activities following completion of the recent drill program:

Metallurgical test work – comprising a progressive program to pilot scale tests, flake size analysis to generate a sound forecast for each deposit, and mineral liberation analysis (MLA) for samples to create benchmark parameters for the deposits where floatation test work has been undertaken;

Resource update work – comprising assessing earlier drill results to update the mineral resource estimate and produce resource upgrades where applicable and planning for additional reverse circulation drilling to delineate along strike extensions to Emperor; and

Exploration work – comprising planning of heritage clearance surveys and drill program to test the EM anomalies that occur along strike from the graphite occurrences. 

- Jessica Cummins

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Tue, 26 Feb 2019 21:25:00 +1100 https://www.proactiveinvestors.com.au/companies/news/215370/hexagon-resources-expects-drill-results-will-add-to-mcintosh-graphite-resource-215370.html
<![CDATA[News - Hexagon Resources has McIntosh graphite resource update and scoping study in sight ]]> https://www.proactiveinvestors.com.au/companies/news/213661/hexagon-resources-has-mcintosh-graphite-resource-update-and-scoping-study-in-sight-213661.html Hexagon Resources Ltd (ASX:HXG) (FRA:F93) is working towards positive cashflow in its balance sheet as it commercialises its graphite assets and a feasibility study is produced for its McIntosh joint venture with Mineral Resources Limited (ASX:MIN) in Western Australia.

The Western Australian company’s upstream efforts towards its goal have included encouraging early drilling outcomes from its flagship McIntosh Graphite Project in the East Kimberley subregion.

WATCH: Hexagon Resources MD discusses quarterly results, and busy quarter ahead

Hexagon has 49% of the formal McIntosh Joint Venture (MJV) while Chris Ellison's MinRes has 51%.

The company’s downstream efforts have netted 'five-nines' total graphitic carbon purification from a large pilot-scale 20-kilogram sample — a 99.999% graphite quality.

Hexagon has a clear business strategy to become a vertically-integrated advanced materials business that produces quality graphite products for premium end-use markets.

It has previously reported the high-purity five-nines grading is “easily achievable” with its graphite, making its output amenable to high-end uses such as in the expandable graphite sector, for battery chemistries and in a range of other applications.

Initial cell-cycling test work of purified, uncoated McIntosh spherical graphite reported on in July 2018 showed the project’s graphite could be used to produce the highest quality synthetic graphite utilised in battery applications.

 

Hexagon managing director Mike Rosenstreich spoke to Proactive Investors’ Stocktube video channel about the company’s achievements this week.

Focusing in on the December quarter of 2018, Rosenstreich highlighted a 10,683-metre diamond core (DD) and reverse circulation (RC) drilling campaign that was completed in the quarter.

Rosenstreich affirmed the company was expecting imminent results from its December quarter drilling campaign.

He said: “We all got an early start to the year.

“Having finished that big drill program, we’re now awaiting the last of the assay results that go into the drill summary, and also those drill results will then feed into an updated mineral resource estimate for the project.

“That should be being reported imminently, it’s being driven by Mineral Resources.”

Exciting finds from Hexagon’s fieldwork included an extensive, thick zone of shallow graphite mineralisation intersected at the new Mahi Mahi target.

A previous pre-feasibility study (PFS) had valued the project at $261 million using a pre-tax net present value (NPV) calculated at an 89% discount.

The corresponding internal rate of return (IRR) was 46% before tax.

Start-up capital needed was $148 million, with mine payback tipped at three years.

A technology the McIntosh JV sourced from the US allows the partners to target five-nines quality and achieve higher gradings than previously modelled by changing when key steps in the flow-sheeted process occur.

Hexagon CR2106 lithium-ion cells

Milestones and value-building efforts

Mineral Resources inked a JV agreement for McIntosh in the June half-year of 2018, agreeing to earn into its now formalised JV stake with a number of key commitments.

These include producing a definitive feasibility study (DFS) that was started about July.

MinRes is responsible for undertaking all feasibility studies up to October 14 this year, starting project development activities by April 14, 2020, and completing those activities so the commercial production of the project’s graphite concentrate can be produced by April 21, 2021.

Writing in its quarterly report last week, Hexagon noted a “feasibility study (was) in progress and updated mineral resource estimate to underpin mine development work (was) expected in February 2019.”

The McIntosh resource is 21.3 million tonnes grading 4.5% total graphitic content (TGC).

Hexagon’s leader noted it would produce a scoping study to draw together the technical reports that had been published over the past year and put them in a business context.

Rosenstreich told Stocktube: “To underpin (our) downstream business, we also announced the engagement of GR Engineering based here in Perth to run a scoping study for us on that downstream business.

“The objective of the scoping study, for the first time, is to present all of those technical reports in the context of the business case in terms of operating costs, revenues, and things like that.

“That’ll be a great outcome when we release that scoping study report.”

Hexagon chairman Charles Whitfield told shareholders at the company’s annual general meeting in November he was confident of the company’s position and path to “a profitable and valuable business”.

Whitfield also addressed the progress the company had made in the prior 12 months, attracting full financing for its world-class McIntosh project through its joint venture with MinRes ahead of a final investment decision.

READ: Hexagon Resources leverages 5-nines graphite purity for downstream refining business

MD Rosenstreich had outlined the company’s strategy, emphasising it planned to analyse the complex and fragmented graphite market to understand it better and position the company to maximise opportunities to extract value.

Speaking this week on upstream efforts to build value, the corporate leader said: “The other key thing for the upstream business is that the core objective of that drilling program was actually to secure drill core samples to undertake piloting for our flotation test work.

“That piloting gets us to finalise our process design criteria, and also generates concentrate sample for both marketing and further downstream test work.

“So, really looking forward to being able to share those results with our investors and interested parties.”

Drill core from the McIntosh project

Offtake focus

As with any industrial minerals company hoping to put see its project turned into a productive mining operation, Hexagon is focused on offtake agreements.

Rosenstreich told Stocktube: “Offtake’s, the Holy Grail, that's what everyone asks me about all the time, (although) I don’t necessarily share that it is the Holy Grail for a company in our position.

“We take the approach of our marketing or our offtake as a steady, steady approach rather than just try and make a splashy headline.

“We’ve done a lot of these scientific studies … and before we go marketing something full scale, we really need to make sure that we understand what the technical attributes of what we’re selling are (so) we understand the full spectrum of value drivers for that material.”

Hexagon’s focus is on engaging with potential end users of its battery-grade flake graphite.

Rosenstreich said: “We are engaged with a whole range of end party users, whether or not that’s for battery materials, or the quite exciting electrode space that we’re looking to fill, or for large flake materials.

“We’re engaged across the spectrum, and I’m sure that we will have updates in terms of offtakes and collaborations coming out systematically through the course of this year.”

Hexagon and MinRes have set aside a plan to establish a company for the joint marketing of graphite concentrate.

The Applecross-based partners are instead planning to use a joint graphite-concentrate marketing framework agreement for their collaboration and adopt joint branding.

Quarterly results

Hexagon used $529 on operating activities in the December quarter, ending the period with $5.8 million cash.

It has forecasted cash outflows of $1.3 million in March quarter 2019, including $337,000 on exploration and evaluation and $470,000 on development.

Major shareholders

Hexagon’s top 20 shareholders have 50.64% of the company.

Among the major shareholders are  HSBC Custody Nominees (Australia) Limited at number-one with a 8.21% stake while Citicorp Nominees Pty Limited is the second-largest holder with 7.66% and UBS Nominees Pty Ltd is third with 6.02%.

Ellison’s MinRes is number four at 3.61% while Investorlink Group Limited is fifth at 3.22%.

Also on the list are Forsyth Barr Custodians Ltd (3.13%) in sixth and JP Morgan Nominees Australia Limited (2.49%), the seventh-largest holder.

— with Danielle Doporto

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Wed, 30 Jan 2019 20:45:00 +1100 https://www.proactiveinvestors.com.au/companies/news/213661/hexagon-resources-has-mcintosh-graphite-resource-update-and-scoping-study-in-sight-213661.html
<![CDATA[Media files - Hexagon Resources MD discusses quarterly results, and busy quarter ahead ]]> https://www.proactiveinvestors.com.au/companies/stocktube/12033/hexagon-resources-md-discusses-quarterly-results-and-busy-quarter-ahead-12033.html Wed, 30 Jan 2019 15:48:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/12033/hexagon-resources-md-discusses-quarterly-results-and-busy-quarter-ahead-12033.html <![CDATA[News - Hexagon Resources leverages 5-nines graphite purity for downstream refining business ]]> https://www.proactiveinvestors.com.au/companies/news/213306/hexagon-resources-leverages-5-nines-graphite-purity-for-downstream-refining-business-213306.html Hexagon Resources Ltd (ASX:HXG) advanced both upstream and downstream work at its McIntosh Graphite Project in WA during the December 2019 quarter.

The company is focused on establishing a downstream graphite refining business underpinned by its high-purity flake graphite resource at McIntosh.

Hexagon finished the December quarter with $5.8 million cash on hand.

 

Drilling at the McIntosh joint venture in Western Australia intersected extensive graphite mineralisation at the new Mahi Mahi target and an updated mineral resource estimate is scheduled for February.

Full results from the drilling program will be available in the coming weeks.

Purification test work on larger pilot-scale samples achieved a ‘5-nines’, or 99.999%, graphite purity, exceeding the specification for the nuclear graphite industry.

READ: Hexagon Resources achieves five-nines graphite purity, exceeds industry specs

McIntosh joint venture partner Mineral Resources Limited (ASX:MIN), who holds a 51% interest, and Hexagon executed a formal joint venture agreement during the quarter, replacing the binding heads of agreement.

Mineral Resources, having joined as an earn-in partner in the first half of 2018, is currently progressing the project’s definitive feasibility study.

Hexagon also engaged GR Engineering to undertake a scoping study for a downstream processing facility comprising graphite refining and three production lines.

Results from the scoping study are anticipated for late in the March quarter.

Hexagon's business structure

  READ: Hexagon Resources focuses on graphite market as MinRes continues DFS work

Hexagon’s strategy is to leverage the value of its high-quality graphite source to produce high-purity graphite materials for large-scale markets, covering strong-growth emerging storage technologies and high-end industrial applications.

The company has begun the process of identifying target markets on several product fronts as successful commercialisation is dependent on effective marketing.

Hexagon believes it needs to establish its own graphite product qualification facilities to increase marketing momentum.

These facilities are planned to comprise: a refining furnace; a spheroidising line for battery materials; and a micronising and classification line for various industrial applications.

READ: Hexagon Resources achieves positive lithium battery test results

Drilling by Mineral Resources was completed on four McIntosh prospects: Emperor, Wahoo, Mahi Mahi and Threadfin.

Planning for an extensive metallurgical test work program to optimise and finalise the processing flow sheet was completed.

Mineral Resources has the right to earn a 51% interest in the McIntosh tenements by funding all feasibility and development activities through to commercial production.

 

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Thu, 24 Jan 2019 22:01:00 +1100 https://www.proactiveinvestors.com.au/companies/news/213306/hexagon-resources-leverages-5-nines-graphite-purity-for-downstream-refining-business-213306.html
<![CDATA[Media files - Hexagon Resources targets high-tech graphite markets with scale & premium pricing ]]> https://www.proactiveinvestors.com.au/companies/stocktube/11575/hexagon-resources-targets-high-tech-graphite-markets-with-scale--premium-pricing-11575.html Tue, 11 Dec 2018 11:01:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/11575/hexagon-resources-targets-high-tech-graphite-markets-with-scale--premium-pricing-11575.html <![CDATA[News - Hexagon Resources achieves five-nines graphite purity, exceeds industry specs ]]> https://www.proactiveinvestors.com.au/companies/news/210909/hexagon-resources-achieves-five-nines-graphite-purity-exceeds-industry-specs-210909.html Hexagon Resources Ltd’s (ASX:HXG) follow-up purification test work on a large-scale graphite sample from its McIntosh Flake Graphite Project in Western Australia has yielded ultra-high purity (99.999%) graphite results.

Notably, the purity achieved from the 20-kilogram sample confirms the ability for McIntosh graphite to exceed the carbon purity specification for the nuclear graphite industry.

This further confirms and underpins Hexagon’s downstream graphite strategy focused on low-cost purification targeting high-end specialty markets.

 

Hexagon’s test work also confirmed virtually no notable concentrations of critical elements potentially deleterious to advanced batteries and to a number of other high-tech applications.

Hexagon managing director Mike Rosenstreich said: “Five-nines (99.999%) purification results for a 20-kilogram batch sample is another important outcome towards commercialising our downstream graphite process.

“We are targeting specific larger-scale markets. We have seen that our flake is easily purified, and when refined through the highly productive EFB furnace technology available to us, we expect to achieve an industry-leading low purification cost producing an ultra-high purity graphite material. 

“The issue is not whether the material is 99.95% pure; but what is in that remaining 0.05% - with critical impurity specifications for each element generally at the 1 to 100 ppm level (ie .0001 wt.% and less). 

“There is an increasing awareness of the importance of purity mitigating risks in high-tech applications.”

READ: Hexagon Resources focuses on graphite market as MinRes continues DFS work 

Hexagon has a joint venture agreement with Mineral Resources Ltd (ASX:MIN) under which MIN funds all project development work until commercial production is achieved. 

Hexagon intends to use its 49% allocation of graphite concentrates as feedstock for its downstream processing strategy.

A scoping study evaluating the downstream business case is in progress and is expected to be complete in late Q1 to early Q2, 2019. 

This will comprise purification downstream processing into two product lines: battery materials and electrode lines.

Planned graphite product lines based on McIntosh flake source.

Hexagon is targeting an industry-leading thermal refining capability, which enables low purification cost of less than US$600 per tonne of concentrate feed, which compares very favourably to the average cost of environmentally irresponsible acid purification in China.

Importantly, the production of ultra-high purity, highly crystalline McIntosh flake graphite will allow Hexagon to access unique markets and receive a premium price in value-added natural graphite product sales.

Relationship between purity and price for Hexagon’s planned products.

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Tue, 11 Dec 2018 10:27:00 +1100 https://www.proactiveinvestors.com.au/companies/news/210909/hexagon-resources-achieves-five-nines-graphite-purity-exceeds-industry-specs-210909.html
<![CDATA[News - Hexagon Resources focuses on graphite market as MinRes continues DFS work ]]> https://www.proactiveinvestors.com.au/companies/news/209629/hexagon-resources-focuses-on-graphite-market-as-minres-continues-dfs-work-209629.html Hexagon Resources Ltd (ASX:HXG) expects a busy nine months as joint venture partner Mineral Resources Limited (ASX:MIN) (MinRes) works on a feasibility study for the McIntosh Graphite Project in Western Australia’s East Kimberley.

The parties are awaiting assays from drilling at McIntosh which may be factored into a resource upgrade to support the project’s definitive feasibility study (DFS) started about July 2018.

MinRes came on board as an earn-in partner on the project in the first half of 2018, inking a formal joint venture earlier this month.

WATCH: Hexagon Resources 'absolutely focused on commercialisation' and financing graphite project

Western Australia-based Hexagon has a clear business strategy to become a vertically-integrated advanced materials business that produces quality graphite products for premium end-use markets.

Hexagon chairman Charles Whitfield told shareholders at the company’s annual general meeting he was confident of the company’s position and path to “a profitable and valuable business”.

The company’s managing director Mike Rosenstreich then outlined the company’s strategy, emphasising it planned to analyse the complex and fragmented graphite market to understand it better and position the company to maximise opportunities to extract value.

Whitfield addressed the progress the company had made in the prior 12 months, attracting full financing for its world-class McIntosh project through its joint venture with MinRes, which is funding studies ahead of a final investment decision.

MinRes is earning into a 51% stake with its feasibility work, with Hexagon to have a 49% participating interest in the project.

Rosenstreich spoke to Proactive Investors’ Stocktube video channel last week, saying the partners were targeting very high grades for the McIntosh project’s graphite flake.

He said, “The refining work (we’ve) been doing really cuts to the heart of one of the really positive aspects of the McIntosh deposit.

“If you look at the crystallinity and the morphology of our graphite flakes, it is really easy to purify, so the impurities sit on the flake surface.”

 

Flake graphite makes up about 40% of the graphite market and is a feedstock for spherical graphite, expandable graphite and graphene.

Hexagon has sourced a technology that was commercialised in the US to produce high-purity graphite flake, and has set a target to produce flake of five-nines or 99.999% graphite quality.

Rosenstreich said, “We’re looking for a cost advantage in terms of our purification because … our technology is efficient and highly productive.”

The company has reported the high-purity five-nines grading is “easily achievable” with its graphite, making its output amenable to high-end uses such as in the expandable graphite sector, for battery chemistries and in a range of other applications.

Rosenstreich said, “Five-nines takes you into another field.

“If we’re able to hit 99.999%, that’s a significant reduction in any impurities and that’s a core driver for our business.

“To be able to attain these ultra-high purities gives us access to exciting markets and to be able to attain those impurity levels at a cost that’s less than the current cost of, say, Chinese purification techniques for graphite, that is a fundamental pillar of our business.”

READ: Hexagon Resources achieves positive lithium battery test results

The technology achieves higher gradings by changing when steps in the flow-sheeted process occur.

“By changing where purification occurs in our flow sheet, we get very high yields, I would suggest double the yields that traditional Chinese manufacturers get.

“We think we've got a leading technology and a leading flow sheet really enabled by this high-quality deposit at McIntosh.”

Initial cell-cycling test work of purified, uncoated McIntosh spherical graphite reported on in July 2018 showed the project’s graphite could be used to produce the highest quality synthetic graphite utilised in battery applications.

The McIntosh resource sits at 21.3 million tonnes grading 4.5% total graphitic content (TGC), with assays pending.

Positive pre-feasibility study figures

The company’s pre-feasibility study financials put the after-tax net present value (NPV) of the project at $175 million at an 8% discount rate.

McIntosh project’s post-tax internal rate of return (IRR) was 36%, based on start-up capital of $148 million at a 15% contingency.

The payback period for the project was three years, with $1.197 billion life-of-mines revenues which come in at $2,087 a tonne.

Rosenstreich told Proactive he expected positive news flow into next year.

He said, “We’ve just finished a really major drill program that was managed by Mineral Resources in late October – 11,000-12,000 metres of drilling.

“It’s going to be a whole series of assay results, metallurgical test work results, a resource upgrade coming out over the next quarter to two quarters, so that’s going to be very exciting.

“We have two streams of news flow - downstream work on the purification and industrial and battery applications, as well as the upstream side in terms of these resource upgrades and assays – lots of news to come over the next two to three quarters.”

READ: Hexagon Resources shareholders give nod to graphite project joint venture with MinRes

The company is waiting on full results from 17 tonnes of drill-core samples after positive preliminary results from the McIntosh drilling program.

Rosenstreich told Proactive, “One of the results from our drilling program was to test this exploration target and we got 90 metres from surface of solid graphite mineralisation, so people can see that the resource is there, they can see it's underpinned by the expression target.”

JV partner MinRes is now responsible for undertaking all feasibility studies up to October 14, 2019, starting project development activities by April 14, 2020, and completing those activities so the commercial production of the project’s graphite concentrate can be produced by April 21, 2021.

MinRes or a sUBSidiary will provide life-of-mine mining, processing and logistical services for the project under a project services agreement.

Hexagon and MinRes have set aside a plan to establish a company for joint marketing of graphite concentrate, instead planning to use a joint graphite-concentrate marketing framework agreement for their collaboration and joint branding.

Hexagon CR2106 lithium-ion cells

Chairman Whitfield and MD Rosenstreich have both reported Hexagon’s joint venture with MinRes has de-risked the McIntosh project.

Corporate leader Rosenstreich told the market on November 8, “The signing of this agreement effectively de-risks the project for Hexagon’s shareholders, having a company with the financial capacity and operational skills such as MinRes involved.”

Among Hexagon’s company’s achievements for the 2017-18 financial year was a $7 million placement to institutional investors in June 2018.

The company reduced its net loss for the year by $660,998, or 38.96%, to $1.3 million, when compared to the 2016-17 financial year.

Hexagon held a stable $6.3 million at the end of the June 2018 and September 2018 financial quarters, burning $1.1 million in the September 2018 quarter.

Drill core from the McIntosh project

The company’s share registry is boosted by a number of notable investors, including UBS Group AG, which held 6.7% of the company at last change earlier this month.

On June 30, HSBC Custody Nominees (Australia) Limited was Hexagon’s largest shareholder, holding 8.21%, with Citicorp Nominees Pty Limited a close second with a 7.66% stake and UBS on third (6.02%).

MinRes was the fourth-largest shareholder (3.61%) while Investorlink Group Limited filled out the top 5 (3.22%).

Portoflio manager Forsyth Barr Custodians Ltd was sixth (3.13%) while J P Morgan Nominees Australia Limited came in at seventh (2.49%).

Hexagon chairman Charles Whitfield and managing director Mike Rosenstreich will host a one-hour investor briefing: in Sydney this Wednesday, November 21, at 4pm; in Melbourne this Thursday, November 22 at noon; and in Perth on Thursday next week, November 29, at 4pm. Details are available from nicolec@hexagonresources.com.

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Tue, 20 Nov 2018 20:15:00 +1100 https://www.proactiveinvestors.com.au/companies/news/209629/hexagon-resources-focuses-on-graphite-market-as-minres-continues-dfs-work-209629.html
<![CDATA[Media files - Hexagon Resources 'absolutely focused on commercialisation,' financing graphite project ]]> https://www.proactiveinvestors.com.au/companies/stocktube/11218/hexagon-resources-absolutely-focused-on-commercialisation-financing-graphite-project-11218.html Fri, 16 Nov 2018 11:48:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/11218/hexagon-resources-absolutely-focused-on-commercialisation-financing-graphite-project-11218.html <![CDATA[News - Hexagon Resources achieves positive lithium battery test results ]]> https://www.proactiveinvestors.com.au/companies/news/200905/hexagon-resources-achieves-positive-lithium-battery-test-results-200905.html Hexagon Resources Ltd (ASX:HXG) has revealed impressive initial cell cycling test work results using purified, uncoated spherical graphite sourced from its McIntosh project in Western Australia.

Notably, the results from the test work are comparable to the performance of the highest quality synthetic graphite utilised in battery applications – a sector that Hexagon is targeting.

The results exceeded benchmark reversible capacity levels of 350 mAh/g, attaining up to 363.1 mAh/g –typical of synthetic graphite and advanced grades of natural crystalline spheroidised flake graphite.

Hexagon CR2106 lithium ion cells

Hexagon managing director Mike Rosenstreich said: “These results indicate that we have high-quality crystalline material suitable for lithium ion batteries, indeed, capable of surpassing the attributes of the highest quality synthetic graphites, which still make up 50 to 70% of the anode material in lithium ion batteries.

“This is very significant for Hexagon because a core component of our downstream business strategy is the substitution of synthetic graphite, not only in battery anode and cathode conductivity enhancer materials but also in traditional industrial applications – and we are definitely on track.”

READ: Hexagon Resources shareholders give nod to graphite project joint venture with MinRes

Earlier this week, Hexagon started the definitive feasibility study (DFS) for the McIntosh flake graphite project along with multi-billion dollar joint venture partner Mineral Resources Limited (ASX:MIN).

The DFS follows Hexagon shareholder approval of the joint venture which enables MIN to earn a 51% share of the McIntosh Project by managing and effectively funding all of the development costs of the project to commercial production.

Positive pre-feasibility outcome - already superseded by recent test results!

MIN, as joint venture manager, has approved an initial budget to allow for a comprehensive drilling program of about 12,000 metres to commence in early August 2018 as the first on-ground work for the DFS.

Key near-term objectives of the joint venture include upgrading the existing resource of 21.3 million tonnes grading 4.5% TGC (total graphitic content).

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Tue, 17 Jul 2018 15:25:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200905/hexagon-resources-achieves-positive-lithium-battery-test-results-200905.html
<![CDATA[News - Hexagon Resources shareholders give nod to graphite project joint venture with MinRes ]]> https://www.proactiveinvestors.com.au/companies/news/196967/hexagon-resources-shareholders-give-nod-to-graphite-project-joint-venture-with-minres-196967.html Hexagon Resources Ltd (ASX:HXG) shareholders have approved a joint venture arrangement with Mineral Resources Limited (ASX:MIN) to develop stage I of the McIntosh Graphite Project in Western Australia.

Hexagon and MinRes now intend to establish an unincorporated joint venture with Hexagon holding a 49% participating interest.

MinRes will earn 51% by undertaking all feasibility studies within 18 months leading to a decision to mine within 24 months.

READ: Hexagon Resources agreement with Mineral Resources will result in development of graphite project

A three-year target has been set for MinRes to complete development activities and begin commercial production of graphite concentrate from the project in the East Kimberley region.

Milestone in development

In an address to this week’s general meeting, Hexagon chairman Charles Whitfield said: “I see this transaction as the first milestone in the future development of Hexagon.

“This will see us leverage our core skills of understanding materials markets, being expert in the technical attributes of those markets, and identifying, securing and developing resources that can feed those markets.

“I am very proud of the team that we are putting together to execute this strategy and I think the transaction put in front of you is a great indication of the first fruit of their ability.”

The McIntosh project is now effectively funded through to full commercial development via a project-level joint venture.

Mining services agreement

MinRes will build, own and operate the entire pit to customer mining, processing and logistics supply chain under a life of mine, mining services agreement.

A 50:50-owned special purpose company will act as the marketing agent for all stage I graphite concentrate products.

Hexagon believes the technical skills of MinRes, together with its Western Australian experience and financial capacity significantly de-risks the project.

Proposed demonstration plant

The company now plans to focus on the downstream development and stage II test work, comprising piloting and commercialisation of a purification circuit.

With the planned construction of a demonstration plant, Hexagon aims to verify to target-customers that its secondary processed and refined McIntosh graphite has cost advantages and technical enhancements over synthetic graphite.

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Tue, 15 May 2018 15:20:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196967/hexagon-resources-shareholders-give-nod-to-graphite-project-joint-venture-with-minres-196967.html
<![CDATA[News - Hexagon Resources agreement with Mineral Resources will result in development of graphite project ]]> https://www.proactiveinvestors.com.au/companies/news/193834/hexagon-resources-agreement-with-mineral-resources-will-result-in-development-of-graphite-project-193834.html Hexagon Resources Ltd (ASX:HXG) has signed an agreement with Mineral Resources Limited (ASX:MIN) leading to development of stage I of the McIntosh Graphite Project in Western Australia.

Under the heads of agreement, Hexagon and MinRes will establish an unincorporated joint venture with Hexagon holding a 49% participating interest.

MinRes will earn 51% by undertaking all feasibility studies within 18 months leading to a decision to mine within 24 months.

Three-year target to begin production

A three-year target has been set for MinRes to complete development activities and begin commercial production of graphite concentrate from the project in the East Kimberley region.

Hexagon was up 42% intra-day to 27 cents.

MinRes will build, own and operate the entire pit to customer mining, processing and logistics supply chain under a life of mine, mining services agreement.

A 50:50-owned special purpose company will act as the marketing agent for all stage I graphite concentrate products.

“Credible partner to work with”

Hexagon managing director Michael Rosenstreich said: “Mineral Resources is a very credible partner to work with us to bring the stage I graphite project into production.

“Their technical skills, Western Australian experience and financial capacity significantly de-risks the project and provides certainty to Hexagon and our investors.

“Subject to a favourable feasibility study, Hexagon now has a clear line of sight toward product sales and cash flow, which will be funded by MinRes to commercial production under its proven build own operate model.

“In terms of future business growth, this enables the Hexagon team to focus on the downstream, stage II processing options and new project opportunities.”

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Tue, 27 Mar 2018 13:27:00 +1100 https://www.proactiveinvestors.com.au/companies/news/193834/hexagon-resources-agreement-with-mineral-resources-will-result-in-development-of-graphite-project-193834.html
<![CDATA[News - Hexagon Resources reveals McIntosh flake concentrate well suited for lithium-ion batteries ]]> https://www.proactiveinvestors.com.au/companies/news/182497/hexagon-resources-reveals-mcintosh-flake-concentrate-well-suited-for-lithium-ion-batteries-182497.html Hexagon Resources Ltd (ASX:HXG) now has the potential to help the supply chain for flake graphite concentrate for the use in lithium ion batteries, after revealing positive results from its wholly-owned McIntosh Flake Graphite Project.

The preliminary results are considered to be highly encouraging as the sample material has “passed” on all the key preliminary assessment criteria

The test work demonstrates that the McIntosh flake concentrate is well suited for lithium-ion batteries.

This information will be critical for future discussions with partners, customers and potential off-take parties.

It will also provide a focus for optimisation and verification test work which can now be undertaken to enhance the material properties further.

With China currently dominating the production of graphite material for batteries, Hexagon is positioning itself to potentially supply end users with an alternative source.

Hexagon is aiming to produce spheroidised, purified graphite (SPG), a material that can achieve price uplifts of 3 to 5 times compared to natural flake graphite concentrate.

Graphite demand

Traditionally graphite demand was been driven largely by the steel industry and dominated by production from China.

The current modest demand of 7% of graphite for batteries is expected to increase dramatically driven by unprecedented interest in energy storage for electric cars, scooters and renewable energy.

What is Spheroidisation

China currently dominates the production of graphite material for batteries.

The main steps towards producing “anode-ready” graphite materials from natural flake graphite are:

- Spheroidisation (sometimes referred to as “spheronisation”): involves size reduction of the graphite flakes and shaping into an elongate spheroidal shape. Target size ranges from 8 to 30 microns with the majority of the distribution in the 15-20 micron range.

- Purification: by either very high temperatures and/or acids, generally a mixture of nitric, sulphuric and hydrofluoric, and/or strong caustic mixtures; all targeted to remove deleterious elements such as Si, Mg, Na, Ca, V and U to achieve a 99.95% or 99.99% graphitic carbon material.

- Coating: involves applying ultrafine carbon material to the purified, spheroidised graphite to improve homogeneity and overall enhance anode properties. Battery manufacturers are increasingly developing their own coating specifications and preferred technologies, making this an increasingly specialised part of the process.

Development strategy

Hexagon continues to engage with potential off-take parties and financing groups seeking to underpin production opportunities from McIntosh.

The company has recently identified and reported a series of new opportunities to enhance the current project PFS economics through major process circuit enhancements.

There is also the possibility for product diversification into the expandable graphite sector.

Hexagon is planning to further enhance the positive spheroidisation test results by undertaking purification test work.

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Wed, 16 Aug 2017 10:48:00 +1000 https://www.proactiveinvestors.com.au/companies/news/182497/hexagon-resources-reveals-mcintosh-flake-concentrate-well-suited-for-lithium-ion-batteries-182497.html
<![CDATA[News - Hexagon Resources strengthens liquidity position ]]> https://www.proactiveinvestors.com.au/companies/news/179276/hexagon-resources-strengthens-liquidity-position-179276.html Hexagon Resources (ASX:HXG) is set to further strengthen its balance sheet as it has reached a financial settlement with China Sciences Hengda Graphite Co.

In June 2015, the former management of Hexagon entered into an agreement for a proposed merger with Hengda and made a $2 million deposit payment.

The proposed merger was terminated and Hexagon’s current management have been actively exploring legal and commercial avenues to recover the deposit, resulting in this settlement.

Hexagon has brought this issue to a close via the sale of the Hengda debt at a discounted value under a confidential financial settlement.

The initial payment has been received into Hexagon’s solicitor’s trust account pending release on completion of certain procedural matters.

Management considers that the combination of its current cash, the Hengda settlement and the marketable securities that the company has from the sale of its Korean assets earlier in the year, put it in a strong liquidity position.

This allows the company to step-up the feasibility study process and continue strategic off-take and financing initiatives.

Mike Rosenstreich, managing director, commented: “We are very grateful to our chairman Charles Whitfield for leading this settlement process and to have brought this matter to a positive conclusion.

“This chapter of the company’s history can now be brought to a close, with the added benefit of providing an important cash contribution to our project development plans.”

Hexagon recently received results from its pre-feasibility study confirming the viability of the first stage of its flagship McIntosh Flake Graphite Project located in Western Australia.

The outcomes confirm the technical and financial viability of the initial project development and provide a strong rationale to advance the project through a feasibility study.

The pre-feasibility study (PFS) estimates a pre-tax net present value (NPV) using an 8% discount rate for the first stage of development at A$272 million.

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Thu, 15 Jun 2017 14:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/179276/hexagon-resources-strengthens-liquidity-position-179276.html
<![CDATA[News - Hexagon Resources confirms economic graphite development ]]> https://www.proactiveinvestors.com.au/companies/news/178521/hexagon-resources-confirms-economic-graphite-development-178521.html Hexagon Resources (ASX:HXG) has received results from its pre-feasibility study confirming the viability of the first stage of its McIntosh Flake Graphite Project located in Western Australia.

The outcomes confirm the technical and financial viability of the initial project development and provide a strong rationale to advance the project through a feasibility study.

The pre-feasibility study (PFS) estimates a pre-tax net present value (NPV) using an 8% discount rate for the first stage of development at A$272 million.

The PFS outcomes are based on a mining and ore processing rate of 2.4 million tonnes per annum, at an average diluted grade of 4.3% total graphitic carbon (TGC), to produce 88,000 tonnes per year of high-grade, 98% TGC flake graphite concentrate.

Mike Rosenstreich, managing director, commented: “We are very pleased with the PFS outcomes, which are a significant step on the path to commercialisation of McIntosh.”


PFS overview

Hexagon owns 100% of the 330 square kilometre McIntosh Flake Graphite Project and has completed extensive drilling and metallurgical test work culminating in the PFS outcomes.

These outcomes include:

- Pre-tax NPV (8%) of A$272 million (Post tax NPV (8%) of A$183 million);
- Pre-tax IRR of 50% (Post tax IRR of 39%);
- EBITDA annual average is estimated to be A$100 million with an EBITDA margin of 51%; and
- Start-up capital cost is estimated to be A$148 million and includes a 15% contingency.

These Stage 1 PFS outcomes are underpinned by a maiden Ore Reserve of 11.9 million tonnes grading 4.3% TGC containing 511,000 tonnes of graphite, all classified as Probable.

The PFS is based on mining and processing 14.31 million tonnes grading 4.3% TGC comprising the Probable Ore Reserve and Inferred Resource material of 2.4 million tonnes grading 4.2% TGC.

Due to the resulting outcomes, Hexagon is now rapidly progressing a definitive feasibility study.


Analysis

The successful outcomes of the PFS indicate the viability of the project even on these initial Stage 1 parameters.

It provides the company with strengthened certainty of a sensible base case with substantial upside as Hexagon takes the project towards development.

Significantly, Hexagon considers that the demand side for graphite, especially natural graphite, is significantly underestimated in current forecasts.

A key market factor is the opportunity to displace more expensive synthetic graphite from the battery sector with consistent high quality natural flake product.

The McIntosh product, with high grade, purity and strong electrical attributes with large scale production capacity, can potentially generate unique marketing opportunities for Hexagon.

Updates regarding the advanced feasibility work now underway have the potential to add further value to the project by reducing capital and operating costs as well as increasing revenue.

Furthermore, additional drilling planned to start mid-year to increase the resource and reserve base.

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Wed, 31 May 2017 11:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/178521/hexagon-resources-confirms-economic-graphite-development-178521.html
<![CDATA[News - Hexagon Resources continues to increase graphite resource ]]> https://www.proactiveinvestors.com.au/companies/news/178292/hexagon-resources-continues-to-increase-graphite-resource-178292.html Hexagon Resources (ASX:HXG) has updated its JORC graphite resource to 21.3 million tonnes grading 4.5% total graphitic carbon at its McIntosh Flake Graphite Project located in Western Australia.

This represents a 3% increase in terms of tonnes and contained graphite and a 10% improvement in the proportion of material classified as Indicated from Inferred.

The JORC resource is spread across 4 deposits: Emperor, Longtom, Wahoo and Barracuda.

McIntosh has an Exploration Target of 110 to 220 million tonnes grading between 2.5% to 5% total graphitic carbon (TGC) for 3 to 11 million tonnes of contained graphitic carbon.

This resource upgrade is further evidence of the company’s ability to realise the potential of the Exploration Target through systematic drill programs.

Mike Rosenstreich, managing director, commented:

"This upgrade is part of the ongoing initiative by the company to increase the scale and longevity of the project and provides a solid basis for the current mining plans that underpin Hexagon’s stage-one pre-feasibility study (PFS) and also gives Hexagon’s team “ownership” of all the Mineral Resource estimates, which importantly underwent detailed independent scrutiny.

"We continue to focus on the PFS and expect to provide a report of key PFS outcomes next week."

Metallurgical test-work completed to date indicates a flake graphite concentrate produced from the McIntosh resource is amenable for sale into the lithium-ion battery market.

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Thu, 25 May 2017 10:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/178292/hexagon-resources-continues-to-increase-graphite-resource-178292.html
<![CDATA[News - Hexagon Resources appoints Charles Whitfield as chairman ]]> https://www.proactiveinvestors.com.au/companies/news/177334/hexagon-resources-appoints-charles-whitfield-as-chairman-177334.html Hexagon Resources (ASX:HXG) has made some key board changes to assist the company on its path to production.

Charles Whitfield has been appointed chairman, effective immediately.

Neville Miles and Tony Cormack have elected to step down from the board due to other commitments.

The composition of the new board also comprises Mike Rosenstreich as managing director and Gary Plowright as non-executive director.

Whitfield has extensive experience in both the battery resource sector and in the development of specialty mineral projects and companies, and undertook the turnaround of Galaxy Resources (ASX:GXY) to become a producer.

He will also be actively consulting to Hexagon to further the offtake and financing for the company’s McIntosh flake graphite project, located in Western Australia.

The projects Exploration Target stands at 110 to 220 million tonnes at between 2.5% to 5% total graphitic carbon (TGC) for 3 to 11 million tonnes of contained graphitic carbon.

This is in addition to the existing JORC resources which were recently increased to 20.9 million tonnes grading 4.5% TGC for 940,500 tonnes of contained graphite.

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Fri, 05 May 2017 09:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/177334/hexagon-resources-appoints-charles-whitfield-as-chairman-177334.html
<![CDATA[News - Hexagon Resources posts new graphite Exploration Target ]]> https://www.proactiveinvestors.com.au/companies/news/176342/hexagon-resources-posts-new-graphite-exploration-target-176342.html Hexagon Resources (ASX:HXG) has completed its Exploration Target estimate for the McIntosh Flake Graphite Project located in Western Australia.

The Exploration Target stands at 110 to 220 million tonnes grading between 2.5% to 5% total graphitic carbon (TGC) for 3 to 11 million tonnes of contained graphitic carbon.

This is in addition to the existing JORC resources which were recently increased to 20.9 million tonnes grading 4.5% TGC for 940,500 tonnes of contained graphite.

Mike Rosenstreich, managing director, commented: “We have a great correlation between our drilled resources and the electromagnetic (EM) responses to arrive at this estimate.

“It is important for us to be able to demonstrate to potential customers the scale of our project which underpins our pre-feasibility study work and hopefully the development of a long-term graphite business”.


Further potential

The conductive nature of many massive sulphide deposits also makes EM a powerful and commonly utilised exploration technique in identifying potential nickel sulphide deposits.

Historical drilling targeting nickel sulphide mineralisation within the survey area frequently intercepted graphitic schist within the metasediment units.

These graphitic units indicated by drilling coincide with “mid-time channel” anomalism from the survey data.

This type of anomalism is interpreted to reflect shallow graphitic units with widths of up to 15 metres and make up an additional 10-15 strike kilometres of secondary target horizons which are not included in the current Exploration Target.


Analysis

The scale of the Exploration Target highlights the project’s potential to support a long-term, large scale flake graphite operation.

The estimate shows a significant flake graphite endowment for the project which should underpin Hexagon’s efforts to generate off-take for its high quality flake concentrate product.

An off-take agreement has the potential to act as a significant price catalyst for the company.

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Wed, 12 Apr 2017 12:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/176342/hexagon-resources-posts-new-graphite-exploration-target-176342.html
<![CDATA[News - Hexagon Resources targets lift in graphite resources at McIntosh ]]> https://www.proactiveinvestors.com.au/companies/news/175977/hexagon-resources-targets-lift-in-graphite-resources-at-mcintosh-175977.html Hexagon Resources (ASX:HXG) is currently modelling data to generate a JORC Exploration Target estimate for the McIntosh Flake Graphite Project located in Western Australia.

This will build on the existing JORC resources which were recently increased to 20.9 million tonnes grading 4.5% total graphitic content (TGC) for 940,500 tonnes of contained graphite.

Hexagon believes that to attract top tier off‐take interest, it needs both a competitive product and to be able to demonstrate long‐term capacity to supply graphite.

The company has access to good quality data thanks to its airborne geophysical electromagnetic data, which has highlighted numerous high‐potential targets for additional graphite mineralisation.

It has also proved to be a strong indicator of actual resource in the ground in previous drilling. 


Opportunities for Hexagon to build value

Exploration targets will provide plenty of scope to support a major resource upgrade at McIntosh.

Furthermore it provides the opportunity for delineation of discrete zones containing larger flake size, such as jumbo sized graphite flake identified at the Marlin prospect.

Other opportunities include:

- The opportunity to utilise ore sorting to upgrade the milling and flotation feed which could bring clear capital and operating cost benefits; 
- A dedicated marketing manager to provide insight and access to markets of a high quality product sourced from a stable, safe jurisdiction in close proximity to major markets; and
- Advancing test-work on the downstream processing routes to produce spherical graphite looking at battery end‐users.


New leadership

Hexagon recently appointed Michael Rosenstreich as managing director and CEO, effective Friday 17th March 2017.

Rosenstreich has extensive experience in bringing mining projects from exploration into operations including organising financing and off-take agreements.

Tony Cormack stepped aside as executive director / CEO and his experience is maintained as a non-executive director.

Under Cormack's leadership, the company has defined a world-class resource at the McIntosh Flake Graphite Project, located in the East Kimberley of Western Australia.

Furthermore, the previous focus on corporate repair is now virtually complete.

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Wed, 05 Apr 2017 14:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/175977/hexagon-resources-targets-lift-in-graphite-resources-at-mcintosh-175977.html
<![CDATA[News - Hexagon Resources appoints Michael Rosenstreich as managing director ]]> https://www.proactiveinvestors.com.au/companies/news/174875/hexagon-resources-appoints-michael-rosenstreich-as-managing-director-174875.html Hexagon Resources (ASX:HXG) has appointed Michael Rosenstreich as managing director and CEO, effective Friday 17th March 2017.

Rosenstreich has extensive experience in bringing mining projects from exploration into operations including organising financing and offtake agreements.

Tony Cormack has stepped aside as executive director / CEO effective 15th March 2017, and his experience will be maintained as a non-executive director.

Under Cormack's leadership, the company has defined a world-class resource at the McIntosh Flake Graphite Project, located in the East Kimberley of Western Australia.

Neville Miles, non-executive chairman, commented:

“I am really excited about getting Mike to lead the team as Hexagon enters the next stage of the development of our projects.

"He comes with a strong track record and will be instrumental in helping us to secure a path forward for the McIntosh Flake Graphite Project as well as progressing our other assets.

"It was important that we made the transition now as Mike will take ownership of delivering the McIntosh PFS outcomes and evaluating a path forward for our other assets.

"I also really want to thank Tony for his tremendous effort and dedication to Hexagon over the past 3 years.

"I don’t believe we would have turned this company around without him."

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Thu, 16 Mar 2017 09:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/174875/hexagon-resources-appoints-michael-rosenstreich-as-managing-director-174875.html
<![CDATA[News - Hexagon Resources expands McIntosh graphite resource ]]> https://www.proactiveinvestors.com.au/companies/news/173162/hexagon-resources-expands-mcintosh-graphite-resource-173162.html Hexagon Resources (ASX:HXG) has again increased the JORC resource at its flagship 100% owned McIntosh Flake Graphite Project located in the East Kimberley of Western Australia.

The resource now stands at 20.9 million tonnes grading 4.5% total graphitic content (TGC) for 940,500 tonnes of contained graphite.

The new resource estimate includes the results of the successful 2016 drilling campaign completed in the second half of 2016 and represents a 22% increase in total resource tonnage.

Tony Cormack, CEO, commented: “The 2016 drilling at McIntosh focussed on resource definition drilling at the Emperor and Wahoo deposits for conversion into mineable ore reserves.

“The Emperor and Wahoo deposits will provide the bulk of the tonnes for the initial stage of mining at McIntosh and underpin the pre-feasibility study for the project.”


Resource upgrade details

McIntosh is one of Australia’s largest JORC compliant flake graphite resources and consists of four separate deposits – Emperor, Longtom, Wahoo and Barracuda.

The upgraded resource includes the results of the latest 2016 drilling program (4,784 metres) bringing the total amount of drilling completed by Hexagon to 20,195 metres of reverse circulation and 6,557 metres of diamond drilling.

Highlights include:

- 103% increase in Indicated Resources at the Emperor deposit;
- 30% increase in total contained graphite tonnes at the Emperor deposit;
- 78% increase in total resources at the Wahoo deposit;
- 67% increase in total contained graphite Tonnes at the Wahoo deposit; and
- 57% increase in Indicated Resources globally for the McIntosh project.


Analysis

The resource upgrade provides further evidence of the continuity of the grade, scale and quality of the deposits at McIntosh to underpin a long-life mining centre, producing a high purity flake graphite concentrate as feed stock for production of high value spherical graphite.

The results of the resource upgrade will feed into a reserve base for completion of the pre-feasibility study.

The resource upgrade together with the results of the 2016 electromagnetic survey, puts Hexagon on course to become a global flake graphite producer of significance.

The survey is currently being modelled and is expected to more than double the McIntosh exploration target estimate.

McIntosh is well located on an existing haul road right alongside the Great Northern Highway allowing for superb access to the Port of Wyndham.

Once the company is generating revenue from the project, exploration and development efforts will focus on significantly expanding the resource base to support many decades of mining at McIntosh.

Hexagon shares are trading up 210% over the past year, currently priced at $0.225.

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Wed, 15 Feb 2017 12:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/173162/hexagon-resources-expands-mcintosh-graphite-resource-173162.html
<![CDATA[News - Hexagon Resources latest graphite discoveries to swell McIntosh resources ]]> https://www.proactiveinvestors.com.au/companies/news/172832/hexagon-resources-latest-graphite-discoveries-to-swell-mcintosh-resources-172832.html Hexagon Resources (ASX:HXG) continues to intersect broad zones of graphite from reverse circulation and diamond drilling at the wholly-owned McIntosh Flake Graphite Project in the East Kimberley, Western Australia.

The importance of the latest discoveries is that they will add significant tonnage to the project, with work nearing completion on the updated JORC 2012 compliant resources.

All deposits have a consistent quality of highly crystalline flake graphite at surface, with McIntosh to have numerous open pits operating simultaneously.

Drilling highlights:

Emperor: 34 metres at 4.7% TGC from 19 metres; 103 metres at 3.6% TGC from 56 metres; and 91 metres at 3.3% TGC from 93 metres.

Wahoo: 20 metres at 4.3% TGC from 13 metres; 16 metres at 4.0% TGC from 18 metres; and 8 metres at 5.0% TGC from 13 metres.

The Wahoo prospect has graphite at surface making it well suited to an open pit operation.

Metallurgical test work has demonstrated the high quality and purity of the flake graphite at the deposit.

Tony Cormack, CEO / Head of Operations, commented:

"The 2016 resource definition drilling results have confirmed thick intersections of flake graphite at McIntosh.

"These results will feed into a reserve base to support an initial 10 year mine life and together with the 2016 XCite electromagnetic survey results, expected to more than double the Exploration Target Estimate for the project, confirm McIntosh as a globally significant flake graphite project."


Analysis

A key for Hexagon at McIntosh is that the company has multiple open pit operations in close proximity to the planned process plant.

Add to this the plant location right alongside an existing haul road making Wahoo a very strategic deposit.

The other important factor is the quality of the concentrate, with a purity of +99%TC from flotation only.

Cormack added: "The flexibility of having multiple open pit operations in close proximity to each other, cannot be underestimated.

"We expect to report on the upgraded Emperor and Wahoo Mineral resources later this week."

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Wed, 08 Feb 2017 15:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/172832/hexagon-resources-latest-graphite-discoveries-to-swell-mcintosh-resources-172832.html
<![CDATA[News - Hexagon Resources settles sale of non-core assets for extra cash ]]> https://www.proactiveinvestors.com.au/companies/news/171444/hexagon-resources-settles-sale-of-non-core-assets-for-extra-cash-171444.html Both parties have agreed to a variation to the previous terms with Hexagon now receiving a larger upfront cash component as partial consideration for the sale.

Under the revised terms, Hexagon has received A$1 million in cash and 2 million shares in Battery Material Resources in full settlement of all shares and loans owned by Hexagon in Opirus.

The funds received will support the Hexagon’s ability to accelerate the development of its focus flake graphite project at McIntosh while preserving value for shareholders.

McIntosh has a JORC resource estimate of 17.2 million tonnes at 4.63% total graphitic carbon for 797,200 tonnes of contained graphite.

This is one of the largest JORC compliant flake graphite resources in Australia with less than 15% of the strike length at McIntosh drilled to date.

Laboratory work has found that a >99% carbon concentrate can be produced from the bulk McIntosh samples through a simple grind and float process.

Hexagon shares are trading up 70% over the past six months, currently trading at $0.26.

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Wed, 11 Jan 2017 14:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/171444/hexagon-resources-settles-sale-of-non-core-assets-for-extra-cash-171444.html
<![CDATA[News - Hexagon Resources progressing sale of non-core assets ]]> https://www.proactiveinvestors.com.au/companies/news/170959/hexagon-resources-progressing-sale-of-non-core-assets-170959.html The proposed sale will provide additional funds for its flagship McIntosh Flake Graphite Project in the East Kimberley, Western Australia.

The share sale agreement is subject to finalising due diligence, and is with BMR, an unlisted Australian public company.

Key terms include:

- Payment of A$700,000 (cash consideration) to HXG in cleared funds on the completion date.

- Issue of 5 million fully paid ordinary shares in BMR to HXG on the completion date. The shares which will not be subject to any kind of escrow or restriction on dealing, except for the minimum restrictions imposed by the securities exchange, on which BMR seeks to list.

- If BMR does not list within 15 months after completion, Hexagon has a put option to sell the BMR shares back to BMR for the higher of their market value at the time or $500,000 plus a 10% per annum return compounded.

- Each party gives the other warranties consistent with the nature of the transaction.

As at 23 December, some due diligence items remain outstanding and Hexagon’s management team is working with BMR.

Shares in Hexagon are up 320% year to date, currently priced at $0.265.

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Wed, 28 Dec 2016 09:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/170959/hexagon-resources-progressing-sale-of-non-core-assets-170959.html
<![CDATA[News - Hexagon Resources bags cash from non-core asset sale ]]> https://www.proactiveinvestors.com.au/companies/news/169922/hexagon-resources-bags-cash-from-non-core-asset-sale-169922.html Hexagon Resources (ASX:HXG) will now have additional funds for its flagship McIntosh Flake Graphite Project in the East Kimberley, Western Australia, after signing a sales agreement for its South Korean assets.

The share sale agreement is subject to finalising due diligence, and is with Battery Material Resources Limited (BMR), an unlisted Australian public company.

Key terms:

- Payment of A$700,000 (cash consideration) to HXG in cleared funds on the completion date.

- Issue of 5 million fully paid ordinary shares in BMR to HXG on the completion date. The shares which will not be subject to any kind of escrow or restriction on dealing, except for the minimum restrictions imposed by the securities exchange, on which BMR seeks to list.

- If BMR does not list within 15 months after completion, Hexagon has a put option to sell the BMR shares back to BMR for the higher of their market value at the time or $500,000 plus a 10% per annum return compounded.

- Each party gives the other warranties consistent with the nature of the transaction.

Tony Cormack, Hexagon’s CEO and head of operations, commented:

"This is a great deal for the company and its shareholders with the cash proceeds to go towards the advancement of the company’s flagship project at McIntosh.

"We are also retaining the potential upside with the development of the South Korean assets by Battery Material Resources.

"We have been impressed with the quality of the assets and people BMR have put together and look forward to the advancement of their projects."


McIntosh

McIntosh has a JORC resource estimate of 17.2 million tonnes at 4.63% total graphitic carbon for 797,200 tonnes of contained graphite.

This is one of the largest JORC compliant flake graphite resources in Australia with less than 15% of the strike length at McIntosh drilled to date.

Laboratory work has found that a >99% carbon concentrate can be produced from the bulk McIntosh samples through a simple grind and float process.

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Mon, 05 Dec 2016 10:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/169922/hexagon-resources-bags-cash-from-non-core-asset-sale-169922.html
<![CDATA[News - Hexagon Resources to update on South Korean assets ]]> https://www.proactiveinvestors.com.au/companies/news/169801/hexagon-resources-to-update-on-south-korean-assets-169801.html The halt will remain in place until the opening of trade on Monday 5th December 2016, or earlier if an announcement is made to the market.

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Thu, 01 Dec 2016 12:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/169801/hexagon-resources-to-update-on-south-korean-assets-169801.html
<![CDATA[News - Hexagon Resources Ltd sees economic potential for gold and base metals ]]> https://www.proactiveinvestors.com.au/companies/news/168905/hexagon-resources-ltd-sees-economic-potential-for-gold-and-base-metals-168905.html Hexagon Resources Ltd (ASX:HXG) has received results from an assessment regarding gold, base metals and platinum group element prospectivity on its tenements in the East Kimberley region of Western Australia.

Economic potential for mineral deposits includes magmatic nickel-copper deposits, orogenic gold deposits and volcanic hosted massive sulphide zinc-lead-copper deposits.

While the focus for Hexagon remains the McIntosh Flake Graphite deposit, the company sees potential to maximise shareholder value by taking advantage of nearby exploration crews.

Tony Cormack, CEO, commented: “The company will remain focused on our flagship McIntosh Flake Graphite project but we cannot ignore the potential to add significant value for our shareholders.

“The next stage involves a detailed field assessment, including mapping, soil sampling and target generation planned to commence in the 2017 field season.”


Background

During June 2016, Hexagon approved stage 2 of the pre-feasibility study on McIntosh after successful stage 1 results.

McIntosh has a JORC resource estimate of 17.2 million tonnes at 4.63% total graphitic carbon for 797,200 tonnes of contained graphite.

This is one of the largest JORC compliant flake graphite resources in Australia with less than 15% of the strike length at McIntosh drilled to date.

Laboratory work has found that a >99% carbon concentrate can be produced from the bulk McIntosh samples through a simple grind and float process.


Current drilling

McIntosh is currently comprised of four deposits - Emperor, Wahoo, Barracuda and Longtom.

Further resource infill and extensional drilling along with first pass drilling of new anomalies has been ongoing at McIntosh.

Drilling is currently being focussed on infill at the Wahoo deposit.

The 2016 field season is expected to be completed in the next week to 10 days with results expected to flow in the coming weeks.

The infill drilling, primarily focussed at the Emperor deposit, has confirmed the robustness and consistency of the mineral resources at McIntosh.

First pass drilling of the large-scale Marlin and Mahi Mahi prospects is planned for the June quarter of 2017.

The Marlin and Mahi Mahi prospects have significant potential to expand the McIntosh flake graphite project.

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Mon, 14 Nov 2016 15:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/168905/hexagon-resources-ltd-sees-economic-potential-for-gold-and-base-metals-168905.html
<![CDATA[News - Hexagon Resources eye flake graphite expansion prospects ]]> https://www.proactiveinvestors.com.au/companies/news/168658/hexagon-resources-eye-flake-graphite-expansion-prospects-168658.html Analysis conducted on rock chip samples from the prospects has confirmed graphite flakes with long dimensions frequently exceeding 500μm and flake graphite concentrations around 5-10%.

A proprietary Xcite™ electromagnetic survey is to commence over Marlin and Mahi Mahi aimed at doubling the exploration target estimate for the McIntosh project.

First pass drilling of the large scale Marlin and Mahi Mahi prospects is planned for the June quarter of 2017.

Tony Cormack, CEO, commented: “The Marlin and Mahi Mahi prospects, like all deposits at McIntosh, have flake graphite at surface and have the potential to add significant tonnage to the global resource.”


Background

During June 2016, Hexagon approved stage 2 of the pre-feasibility study on McIntosh after successful stage 1 results.

McIntosh has a JORC resource estimate of 17.2 million tonnes at 4.63% total graphitic carbon for 797,200 tonnes of contained graphite.

This is one of the largest JORC compliant flake graphite resources in Australia with less than 15% of the strike length at McIntosh drilled to date.

Laboratory work has found that a >99% carbon concentrate can be produced from the bulk McIntosh samples through a simple grind and float process.


Current drilling

McIntosh is currently comprised of four deposits - Emperor, Wahoo, Barracuda and Longtom.

Further resource infill and extensional drilling along with first pass drilling of new anomalies has been ongoing at McIntosh.

Drilling is currently being focussed on infill at the Wahoo deposit.

The 2016 field season is expected to be completed in the next week to 10 days with results expected to flow in the coming weeks.

The infill drilling, primarily focussed at the Emperor deposit, has confirmed the robustness and consistency of the mineral resources at McIntosh.


Analysis

The results from the Marlin and Mahi Mahi rock chips clearly display the high quality of the flake graphite and confirm a quality consistent with that of the existing deposits at McIntosh.

The upcoming aerial electromagnetic survey will attempt to better define results.

The value of flying an electromagnetic survey to successfully target drilling has proven to be successful previously at McIntosh.

Expanding the McIntosh resources is an important future milestone for Hexagon and the Marlin and Mahi Mahi prospects have the potential to host large tonne flake graphite resources.

Shares are trading up over 320% year to date, currently priced at $0.27.

The pre-feasibility study at McIntosh is expected to be delivered by January 2017.

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Tue, 08 Nov 2016 12:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/168658/hexagon-resources-eye-flake-graphite-expansion-prospects-168658.html
<![CDATA[News - Hexagon Resources Ltd graphite test results support use in lithium-ion batteries ]]> https://www.proactiveinvestors.com.au/companies/news/166995/hexagon-resources-ltd-graphite-test-results-support-use-in-lithium-ion-batteries-71390.html Hexagon Resources Ltd (ASX:HXG) has received outstanding results from the initial stage 1 lithium ion battery anode test work using a bulk graphite sample from the McIntosh project located in Western Australia.

The graphite concentrate displays high-quality characteristics and has not shown evidence that would make it not suitable for the lithium ion battery market.

There is set to be a significant increase in demand for lithium-ion batteries as electric vehicles and battery storage become mainstream.

Hexagon is trading up 270% year to date and investor support continues with the company securing $2 million in a share placement.

Tony Cormack, chief executive officer, commented: "These results are simply outstanding.

“The significance of these results are that 100% of the concentrate, across the entire flake size distribution, was found to be within experimental error of the theoretical capacity of flake graphite.”


Test work details

Test work was conducted on a 97.5% total carbon blended flake graphite concentrate containing all the flake sizes.

The sample was produced from a 300 kilogram representative sample from the McIntosh project by an independent company in the U.S.

The McIntosh representative, blended concentrate displays high reversible capacity and at this stage of testing does not exhibit any characteristics that would make it not suitable for lithium ion battery applications.

Furthermore, these impressive results have been achieved prior to any spheronisation or coating process being applied.


Placement

Hexagon has received commitments to raise $2 million through the issue of 10 million shares priced at $0.20.

The company will issue the shares under its existing placement capacity in the coming days.


Use of funds

Funds from the placement will be used to accelerate the stage 2 lithium-ion battery test work following the positive stage 1 results.

Additionally, Hexagon will accelerate the pre-feasibility study and maximise the activities for the remainder of the field season.


Background

During June 2016, Hexagon approved stage 2 of the pre-feasibility study on McIntosh after successful stage 1 results.

McIntosh has a JORC resource estimate of 17.2 million tonnes at 4.63% total graphitic carbon for 797,200 tonnes of contained graphite.

This is one of the largest JORC compliant flake graphite resources in Australia with less than 15% of the strike length at McIntosh drilled to date.

Laboratory work has found that a >99% carbon concentrate can be produced from the bulk McIntosh samples through a simple grind and float process.

Commercial samples of the McIntosh ultra-high purity flake graphite concentrate have been produced for end users to test in their specific applications.


Analysis

Results from stage 1 test work suggest that Hexagon’s deposit can supply graphite concentrate to the high-value end of the flake graphite market.

The results also have significant implications for lowering McIntosh’s capital and operating costs.

This is due to the removal of screens from the processing circuit and by producing a single ultra-high purity product stream for supply as spherical feed.

Most importantly, high purity impacts significantly on expected product pricing and McIntosh has ultra-high purity across the entire flake size distribution.

Hexagon and its partners will look to accelerate its material testing program and is in the process of generating a new sample to produce concentrate for spherinisation and coating to then assemble a lithium-ion cell.

The validation and verification of these lithium-ion cells will be a key milestone towards finalising offtake agreements and project funding.

Shares are trading up over 270% year to date, currently priced at $0.227.

One of the world's largest hedge funds, Och-Ziff Capital Management remains the company's largest shareholder.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 06 Oct 2016 14:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/166995/hexagon-resources-ltd-graphite-test-results-support-use-in-lithium-ion-batteries-71390.html
<![CDATA[News - Hexagon Resources Ltd in a trading halt pending test work ]]> https://www.proactiveinvestors.com.au/companies/news/166864/hexagon-resources-ltd-in-a-trading-halt-pending-test-work-71328.html Hexagon Resources Ltd (ASX:HXG) has been granted a trading halt by the ASX this morning, pending details in relation to information received for the Stage 1 test work results for lithium ion battery anodes.

The halt will remain in place until the opening of trade on Thursday 6th October 2016, or earlier if an announcement is made to the market.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 04 Oct 2016 08:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/166864/hexagon-resources-ltd-in-a-trading-halt-pending-test-work-71328.html
<![CDATA[News - Hexagon Resources Ltd's Charles Whitfield snaps up shares on-market ]]> https://www.proactiveinvestors.com.au/companies/news/165919/hexagon-resources-ltds-charles-whitfield-snaps-up-shares-on-market-71039.html Hexagon Resources Ltd (ASX:HXG) remains well positioned to take advantage of growing demand in the lithium-ion battery market and the rapidly emerging graphene market by producing premium quality graphite and graphene.

New drilling is planned to increase the global resource at the company's McIntosh flake graphite project located in Western Australia.

Hexagon will continue with the current pre-feasibility study to develop one of Australia's largest JORC compliant flake graphite resources.

With that in mind, Charles Whitfield, non-executive director, has taken the opportunity to increase his stake in on-market trades.

Whitfield acquired 100,000 shares at $0.135, increasing his direct stake to over 1.1 million shares.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 15 Sep 2016 14:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/165919/hexagon-resources-ltds-charles-whitfield-snaps-up-shares-on-market-71039.html
<![CDATA[News - Hexagon Resources Ltd eyes increased resource at McIntosh graphite project ]]> https://www.proactiveinvestors.com.au/companies/news/165300/hexagon-resources-ltd-eyes-increased-resource-at-mcintosh-graphite-project-70675.html Hexagon Resources Ltd (ASX:HXG) will recommence drilling in early September with the aim to increase the global resource at the McIntosh flake graphite project located in Western Australia.

The company will continue with the current pre-feasibility study to develop one of Australia's largest JORC compliant flake graphite resources.

An aerial electromagnetic survey is planned in the coming weeks over the Marlin and Mahi Mahi prospects within McIntosh to expand the resource potential.

The company is also conducting lithium-ion battery test work in the U.S and graphene test work in Europe.

Hexagon’s focus is on securing long lasting supply agreements with strategic end users.

Tony Cormac, CEO, commented: "With the ultra high purity product that can be produced from McIntosh from simple processing techniques, success is set to continue as we take the company to the next level."


Background

During June 2016, Hexagon approved stage 2 of the pre-feasibility study on McIntosh after successful stage 1 results.

McIntosh has a JORC resource estimate of 17.2 million tonnes at 4.63% total graphitic carbon for 797,200 tonnes of contained graphite.

This is one of the largest JORC compliant flake graphite resources in Australia with less than 15% of the strike length at McIntosh drilled to date.

Laboratory work has found that a >99% carbon concentrate can be produced from the bulk McIntosh samples through a simple grind and float process.

Commercial samples of the McIntosh ultra-high purity flake graphite concentrate have been produced for end users to test in their specific applications.


Lithium-ion battery test work

Hexagon has engaged an industry expert in the battery space to co-ordinate and manage a detailed independent lithium-ion battery test work program in the U.S.

Results from the preliminary assessment of the McIntosh blended flake graphite concentrate will show its potential suitability for use as an anode in a lithium-ion battery.


Graphene test work

Hexagon currently has graphene test work in progress with a potential commercial partner in Europe.

Results of this test work are due in the coming weeks.

The company is confident of positive results from the test work in Europe based the outstanding university test work results of a 90% yield achieved from the McIntosh flake graphite earlier in the year.


Analysis

The new management team at Hexagon continues to deliver results on the graphite and graphene fronts.

With drilling to recommence in early September, two test work programs underway and an upcoming aerial electromagnetic survey planned, Hexagon is positioned well for future news flow.

The pre-feasibility study to date demonstrates the potential for multiple low strip ratio open pit operations across a range of production scenarios.

Hexagon remains well positioned to take advantage of growing demand in the lithium-ion battery market and the rapidly emerging graphene market by producing premium quality graphite and graphene.

The company is continuing offtake and financing discussions with a number of interested parties.
Hexagon’s share price is up 90% year to date, currently trading at $0.12.

One of the world's largest hedge funds, Och-Ziff Capital Management remains the company's largest shareholder.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Thu, 25 Aug 2016 13:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/165300/hexagon-resources-ltd-eyes-increased-resource-at-mcintosh-graphite-project-70675.html
<![CDATA[News - Hexagon Resources Ltd appoints Charles Whitfield a non-executive director ]]> https://www.proactiveinvestors.com.au/companies/news/165299/hexagon-resources-ltd-appoints-charles-whitfield-a-non-executive-director-70591.html Hexagon Resources Ltd (ASX:HXG) has appointed Charles Whitfield a non-executive director

Hexagon is focused on the delivery of exceptional high purity and highly crystalline flake graphite for use in new technologies.

The experienced Whitfield was an executive director for Galaxy Resources (ASX:GXY) where he had responsibility for strategy and finance during the turnaround from a distressed company to one of the preeminent lithium players today.

Neville Miles, chairman, commented: "We have spoken about strengthening the board this year and we wanted to ensure someone of both the right calibre and energy joined us.

"Having someone with Charles's experience is now crucial as we further develop several key internal projects including project financing and are being presented with many different corporate options.

"Charles also brings an extensive network of investors with interest in the battery material space. We are very excited to have him in the team."

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Mon, 22 Aug 2016 13:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/165299/hexagon-resources-ltd-appoints-charles-whitfield-a-non-executive-director-70591.html
<![CDATA[News - Hexagon Resources Ltd pockets funds from research scheme ]]> https://www.proactiveinvestors.com.au/companies/news/165298/hexagon-resources-ltd-pockets-funds-from-research-scheme-70298.html Hexagon Resources Ltd (ASX:HXG) has received circa $600,000 from the Federal Government’s Research and Development Tax Incentive Scheme, lifting the company's cash position to over $1.4 million.

Shares in Hexagon have been performing very well recently, and last traded at $0.15, or around double their value from three-months ago.

The company is focused on the delivery of exceptional high purity and highly crystalline flake graphite for use in new technologies.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 08 Aug 2016 11:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/165298/hexagon-resources-ltd-pockets-funds-from-research-scheme-70298.html
<![CDATA[News - Hexagon Resources Ltd pre-feasibility study paves way for graphite production ]]> https://www.proactiveinvestors.com.au/companies/news/137065/hexagon-resources-ltd-pre-feasibility-study-paves-way-for-graphite-production-69115.html Hexagon Resources Ltd (ASX:HXG) has approved stage 2 of the pre-feasibility study (PFS) after successful stage 1 results on its 100% owned McIntosh flake graphite project in Western Australia.

The company will continue to develop Australia's largest JORC compliant flake graphite resource to supply high purity flake graphite for use as anode material in lithium-ion batteries.

Stage 1 PFS open pit mining optimisation results demonstrate the potential for multiple low strip ratio, large scale open pit operations with a long mine life close to infrastructure and port.

Environmental surveys for the mining proposal are well advanced with baseline flora and fauna surveys completed.

Hexagon remains in advanced discussions with key potential end users in the U.S, Europe and Asia.


Stage 1 PFS

Stage 1 of the McIntosh PFS focused on the project mine engineering design to determine the parameters under which a future mining operation could be established.

Pit optimisations across production scenarios of 1.2 million tonnes per annum and 2.4 million tonnes per annum throughput have both shown favourable results.

Stage 1 determined the most cost effective method of transport would be via the deep water Port of Wyndham using the sealed Great Northern Highway.

Key components to stage 1 PFS:
- Conventional truck and shovel mining methods;
- Low average strip ratio for projected life of mine;
- Simple processing using proven technology consisting of crushing, grinding, flotation, filtration, drying and bagging; and
- Further technical studies being conducted to assess the viability of producing spherical graphite and graphene.


Background

McIntosh has a JORC resource estimate of 17.2 million tonnes at 4.63% total graphitic carbon for 797,200 tonnes of contained graphite.

This is the largest JORC compliant flake graphite resource in Australia with less than 15% of the strike length at McIntosh drilled to date.

Laboratory work has found that a >99% carbon concentrate can be produced from the bulk McIntosh samples through a simple grind and float process.

Commercial samples of the McIntosh ultra-high purity flake graphite concentrate have been produced for end users to test in their specific applications.


Graphene breakthrough

In a major recent breakthrough, Hexagon, through its collaboration with the University of Adelaide produced graphene using a flake graphite sample from the McIntosh project.

Graphene is a thin single layer of pure carbon atoms bonded together in a hexagonal honeycomb lattice.

Graphene has been hailed as one of the greatest untapped discoveries in modern history.

Results from this study indicate that Hexagon’s graphite has potential to be used for the increased scale of graphene production.

These graphene test work results will be sent to currently engaged commercial graphene groups.


Analysis

Stage 1 PFS results are further validation that the McIntosh flake graphite project can be readily mined and exported from mine site.

With testwork achieving an ultra-high purity of +99% TC from simple flotation, future product will be in demand.

Detailed bulk scale metallurgical test work has confirmed the ultra-high purity of the McIntosh product with a number of potential offtake partners and end users currently testing the McIntosh product in their particular applications, including graphene.

Recent graphene test work results indicate that Hexagon’s flake graphite has the capacity to produce commercial quantities of graphene adding additional value to the deposit.

At the end of the March, the company held $1.26 million in cash.

Hexagon's share price has been a stand-out, up 75% over the past three months and surging 150% for the year to date.

One of the world's largest hedge funds, Och-Ziff Capital Management remains the company's largest shareholder.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 08 Jun 2016 15:15:00 +1000 https://www.proactiveinvestors.com.au/companies/news/137065/hexagon-resources-ltd-pre-feasibility-study-paves-way-for-graphite-production-69115.html
<![CDATA[News - Hexagon Resources Ltd's 44% spike prompts ASX price query ]]> https://www.proactiveinvestors.com.au/companies/news/137064/hexagon-resources-ltds-44-spike-prompts-asx-price-query-68917.html Hexagon Resources Ltd (ASX:HXG) today received an ASX price query as the company's shares increased to $0.105 from $0.073 over the past 5 trading days.

Hexagon replied to the ASX stating: "The company is not aware of any information concerning it that has not been announced to the market that would explain the recent trading in the securities."

Earlier in the month, Hexagon, in collaboration with the University of Adelaide produced graphene using a flake graphite sample from the company's flagship McIntosh project.

This indicated that Hexagon’s graphite has potential to be used for the increased scale of graphene production.

The graphene test work results were to be sent to commercial graphene groups Hexagon was engaged with.

Graphene is a thin single layer of pure carbon atoms and has been hailed as one of the greatest untapped discoveries in modern history.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 30 May 2016 18:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/137064/hexagon-resources-ltds-44-spike-prompts-asx-price-query-68917.html
<![CDATA[News - Hexagon Resources Ltd: Graphene produced from McIntosh graphite ]]> https://www.proactiveinvestors.com.au/companies/news/137063/hexagon-resources-ltd-graphene-produced-from-mcintosh-graphite-68410.html

In a major breakthrough, Hexagon Resources Ltd (ASX:HXG) in collaboration with the University of Adelaide has produced graphene using a flake graphite sample from the McIntosh project.

Graphene is a thin single layer of pure carbon atoms bonded together in a hexagonal honeycomb lattice.

Graphene has been hailed as one of the greatest untapped discoveries in modern history.

Results from this study indicate that Hexagon’s graphite has potential to be used for the increased scale of graphene production.

These graphene test work results will be sent to currently engaged commercial graphene groups.

Hexagon's CEO, Tony Cormack commented: “The McIntosh project continues to deliver.

"These outstanding graphene test work results add another dimension to the project with the potential to also produce high value graphene. Whilst the graphene sector is in its infancy the potential uses and upside is significant.

"The key driver will be the capacity to produce commercial quantities of graphene. These exceptional test work results achieved from a bulk scale representative sample from McIntosh gives Hexagon that capacity”.

 
Test work results

The graphene was able to be produced from Hexagon’s ultra-high purity graphite (+99.9% total carbon) and was successfully demonstrated using all three exfoliation methods.

A high yield of graphene was extracted from graphite at approximately >90%. 

The graphene was produced via several methods including a ‘green method’ without the use of hazardous chemicals.

Graphene produced from Hexagon’s high-purity graphite samples have comparable quality to graphene currently available on the market.

 

Background

The test work program conducted by the University of Adelaide used samples from the McIntosh Flake Graphite Project in the East Kimberley, Western Australia.

The test work program evaluated the extraction of graphene using 3 exfoliation methods and determined the quality and yield of the isolated graphene.

The program also analysed the McIntosh flake graphite concentrate by characterising its physical, electrical, structural and chemical composition.

Hexagon recently commenced a pre-feasibility study (PFS) three months ahead of schedule at McIntosh.

The PFS will build upon the detailed conceptual study completed by CSA Global in April, 2015.

Stage 1 of the PFS will focus on engineering design and optimisation as well as build on the process metallurgy and design as previously completed by BatteryLimits.

 

Analysis

Graphene is attracting more and more investment and research with high growth forecasts for the graphene market over the coming decade.

These graphene test work results indicate that Hexagon’s graphite has the capacity to produce commercial quantities of graphene.

Hexagon is proving to be a leader in the field of ultra-high purity graphite, which is deserving of a first mover premium.

The share price remains in its uptrend since November 2015 under the guidance of new management under Tony Cormack.

One of the world's largest hedge funds, Och-Ziff Capital Management is currently the company's largest shareholder.



Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

 

 

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Tue, 03 May 2016 13:16:00 +1000 https://www.proactiveinvestors.com.au/companies/news/137063/hexagon-resources-ltd-graphene-produced-from-mcintosh-graphite-68410.html
<![CDATA[News - Hexagon Resources Ltd focused on high purity flake graphite in Australia ]]> https://www.proactiveinvestors.com.au/companies/news/137062/hexagon-resources-ltd-focused-on-high-purity-flake-graphite-in-australia-68331.html Hexagon Resources Ltd (ASX:HXG) continues to focus on its strategy to supply high purity flake graphite for use as anode material in lithium-ion batteries.

The company recently commenced its pre-feasibility study (PFS) on the McIntosh flake graphite project in Western Australia.

McIntosh has a JORC resource estimate of 17.2 million tonnes at 4.63% total graphitic carbon for 797,200 tonnes of contained graphite.

This is the largest JORC compliant flake graphite resource in Australia with less than 15% of the strike length at McIntosh drilled to date.

Lab work has found that a >99% carbon concentrate can be produced from the bulk McIntosh samples through a simple grind and float process.

Commercial samples of the McIntosh ultra-high purity flake graphite concentrate have been produced for end users to test in their specific applications.

Discussions with potential off-take partners is ongoing with the company focusing its efforts on the end-user groups in the lithium-ion battery market.


University test program

A detailed test work program on the McIntosh flake graphite concentrate with University of Adelaide is ongoing.

The test work program will include characterisation of the physical, electrical, structural and chemical composition using a number of specialist techniques.

It will also evaluate the extraction of graphene using 3 exfoliation methods and determine the quality and yield of the isolated graphene.


Graphene

Graphene is a single layer of pure carbon first discovered in 2003 with world changing properties.

These properties quickly gained interest from the electronics and other industries, even amid questions about feasibility and cost.

Now, a new wave of low-cost manufacturing processes is opening the door for its use across a range of applications.

The ten year budget of the European Commission’s Graphene Flagship is $1.1 billion.

Graphene conducts electricity six times more effectively than copper.


Corporate

In March, Hexagon completed a successful placement of shares and options to institutional fund managers and sophisticated investors to raise a total of $1.333 million.

A total of 16,662,500 ordinary shares were issued at $0.08 each with a free unlisted option for every 2 shares subscribed to.

Tony Cormack was appointed CEO in April 2015 and has been a driver of both change for the company and the extraction of value from assets.

At the end of the March, the company had $1.26 million in cash and estimates expenditure of $430,000 in the June quarter.

One of the world's largest hedge funds, Och-Ziff Capital Management remains the company's largest shareholder.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Fri, 29 Apr 2016 09:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/137062/hexagon-resources-ltd-focused-on-high-purity-flake-graphite-in-australia-68331.html
<![CDATA[News - Hexagon Resources Ltd upgrades South Korean graphite projects ]]> https://www.proactiveinvestors.com.au/companies/news/137061/hexagon-resources-ltd-upgrades-south-korean-graphite-projects-68040.html Hexagon Resources Ltd (ASX:HXG) under the guidance of its new management team has conducted a detailed review of its South Korean flake graphite projects.

The flagship McIntosh Project in Western Australia has been the focus to date.  From the knowledge gained and its ongoing development has led to targeting of the regional scale fold hinges at the Geumam project in Korea.

This has demonstrated its potential to produce large to jumbo flake at high grades along with good recoveries.

The review, which focussed primarily on the Geumam project in South Korea has identified upside potential by targeting specific geological structures.

Hexagon has three flake graphite projects in South Korea - Geumam, Taewha and Samchoek.


Geumam Project

Flake size distribution in graphite concentrate from historical mining at the advanced Geumam project indicates >30% to be in the large to extra-large/jumbo category and >30% in the medium category.

The larger the size of the flake graphite, the better suited it is for production of spherical graphite for use in lithium-ion batteries.
 
Regional outcropping at Geumam, similar to McIntosh has the potential to produce large to jumbo flake at high grades along with good recoveries. 
 
A review of historical mine data from Geumam has highlighted that the open pit operation targeted the synformal structure and confirmed the high quality of the Geumam flake graphite product.

The extensive data review provides Hexagon with a good opportunity to grow their current JORC resource of 296,000 tonnes of contained graphite as the current resource estimate is limited to only a portion of the Area B prospect.

A small mining operation and flotation processing plant was established at Area B of Geumam in 1986. The plant was capable of producing 6tpd flake graphite concentrate (>85% Cg) which was sold to export markets in Japan and Europe.

Historical metallurgical reports indicate from a ROM head grade of 7.5% Cg, a flotation concentrate grading 87.6% Cg was produced with only 2 cleaner flotation cycles, with a recovery of 79.2%.

The flake size distribution of the historic concentrate demonstrates that through simple flotation good recovery’s of large to extra-large ‘jumbo’ flake graphite, suitable for spherical feed, can be obtained.

Hexagon's other two projects in Korea are also with interest. The Taewha project contains a resource of 170,000 tonne at 7% Cg.

Historic metallurgical test work was undertaken by KMPC (1980) on two bulk samples and produced a medium to extra-large ‘jumbo’ flake graphite concentrate with a grade of >90% Cg, at a high recovery of 89%.

While the Samcheok Flake Graphite project, which is situated on the eastern seaboard of South Korea in Donghae County of Gangwon-Do has a JORC compliant resource of 200,000 tonnes at 5% Cg.

Flake graphite grades of 4-5% Cg were recorded in sampling of the graphitic unit by the KMPC (1977). The strike potential of Samcheok project is considered to be significant, as the graphitic unit can possibly be traced for 4,000 metres.

In mining and development friendly South Korea, with established infrastructure and no mining royalties the review of data has pinpointed potential upside in the country for the Korean projects.


McIntosh Flake Graphite Project

Hexagon is developing its McIntosh Flake Graphite Project in the East Kimberley, Western Australia.

Hexagon recently commenced a pre-feasibility study (PFS) three months ahead of schedule at its McIntosh Flake Graphite Project in Western Australia.

The PFS will build upon the detailed conceptual study completed by CSA Global in April 2015.

Stage 1 of the PFS will focus on engineering design and optimisation as well as build on the process metallurgy and design as previously completed by BatteryLimits.


Management

Hexagon's CEO Tony Cormack was appointed to the position in April 2015 and has been a driver of both change for the company and the extraction of value from assets for shareholders.

Over this time Hexagon has fast-tracked feasibility and commercial development plans at its McIntosh project including a 136% improvement in inventory establishing it as the country's largest flake graphite resource. 

The share price has been on a solid uptrend since November 2015.


Graphene future

Graphene is a single layer of pure carbon first discovered in 2003 with world changing properties.

These properties quickly gained interest from the electronics and other industries, even amid questions about feasibility and cost.

Now, a new wave of low-cost manufacturing processes is opening the door for its use across a range of applications.

Samsung have filed 500 graphene-related patent families and there are now seven research papers published daily on the material.

The ten year budget of the European Commission’s Graphene Flagship is $1.1 billion.

Graphene conducts electricity six times more effectively than copper.

Characterisation of the McIntosh flake graphite concentrate, along with Graphene test work, is continuing at the University of Adelaide.

The university will run two concentrate samples in parallel through the entire test work program, at no additional cost.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Wed, 13 Apr 2016 13:41:00 +1000 https://www.proactiveinvestors.com.au/companies/news/137061/hexagon-resources-ltd-upgrades-south-korean-graphite-projects-68040.html
<![CDATA[News - Hexagon Resources Ltd commences PFS at McIntosh Flake Graphite Project ]]> https://www.proactiveinvestors.com.au/companies/news/137060/-hexagon-resources-ltd-commences-pfs-at-mcintosh-flake-graphite-project-67797.html Australian graphite development company Hexagon Resources Ltd (ASX:HXG) has commenced a pre-feasibility study (PFS) at its McIntosh Flake Graphite Project in Western Australia.

The commencement of the study is three months ahead of schedule and will focus on achieving the best return on investment from the ultra high purity and quality of the 100% owned McIntosh project and flake graphite.

The PFS for the East Kimberley project will incorporate inputs on the metallurgy, environmental, engineering and process control along with mining and logistics, to build upon the detailed conceptual study completed by CSA Global in April 2015.

Stage 1 of the PFS will focus on engineering design and optimisation as well as build on the process metallurgy and design as previously completed by BatteryLimits.

Tony Cormack, CEO / Head of Operations, commented:  “The commencement of the pre-feasibility study is yet another milestone achieved for Hexagon Resources.

"The diamond drilling and bulk scale metallurgical programs have delivered a large, high purity and exceptional quality resource at McIntosh. The Hexagon board has promptly approved the commencement of the PFS."


High Flake quality

The bulk scale flotation test work has highlighted that ultra high purity flake graphite concentrates can be produced across the entire flake size range at McIntosh.

While early analysis on the concentrate grade in each flake size category has shown that the medium to fine flake sizes can produce the highest purity concentrates.

This characteristic makes the McIntosh project superior to most other flake graphite deposits globally whereby concentrate grades drop as the flake size diminishes.

It also provides McIntosh with a strategic comparative advantage and has the project well positioned to produce ultra high purity blended flake graphite concentrate suitable for the production of spherical graphite for use in lithium-ion batteries.


Spherical graphite

Spherical graphite is mainly used in lithium ion batteries with the main demand driver currently being electrical vehicles (EV) and increasingly for home energy storage.

Spherical graphite particles range from 3 to 50 microns with particle size for lithium ion batteries split into two main categories; the coarse size battery requires spherical graphite with particle size 25 to 50 microns and the fine sizing battery requiring spherical graphite with a particle size 3 to 25 micron.

Hexagon is targeting production of spherical graphite for use in lithium-ion batteries.


Graphite / Graphene work

Characterisation of the McIntosh flake graphite concentrate, along with Graphene test work, is continuing at the University of Adelaide.

The university will run two concentrate samples in parallel through the entire test work program, at no additional cost.

These additional results, along with the associated cost savings will be released to the market as soon as they are received from the university.


Momentum building

Discussions with potential offtake partners are understood to be ongoing with samples being provided for verification.

Further petrological studies and flotation test work have highlighted the high quality of the flake size distribution at the McIntosh project.

Work has commenced on a 3-dimensional, geo-metallurgical model which will optimise both the grade and flake size distribution within the deposits, it will also form the basis of the grade control model for mining.



Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Thu, 31 Mar 2016 10:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/137060/-hexagon-resources-ltd-commences-pfs-at-mcintosh-flake-graphite-project-67797.html
<![CDATA[News - Hexagon Resources Ltd raises $1.35M for graphite project development ]]> https://www.proactiveinvestors.com.au/companies/news/137059/hexagon-resources-ltd-raises-135m-for-graphite-project-development-67414.html Hexagon Resources Ltd (ASX:HXG) has closed a $1.358 million capital raising at $0.08 each with new and existing institutional funds, and sophisticated / professional investors for the company's McIntosh graphite project in Western Australia.

The company planned to place 12 million ordinary shares but demand for the stock was such that the placement was increased to 16,975,000 ordinary shares.

Investors also received a 1 for 2 unlisted option exercisable at $0.12 with an expiry date of 30 September 2017.

Funds raised from the placement will be used to fund final stage environmental and hydrogeological studies, further engineering and process design and commencement of a feasibility study for McIntosh plus ongoing working capital.



McIntosh graphite project

After a resource upgrade, McIntosh has Australia’s largest flake graphite project by contained tonnes with a resource of 17.2 million tonnes at 4.63%TGC.

McIntosh is located in the Kimberley region of Western Australia. Hexagon plans to progress the through feasibility study given the strong metallurgical results.

Simple floatation can achieve ultra high purity of +99% TC flake graphite concentrate at high recovery rates.

High purity flake graphite concentrate is suitable for use in the growing battery graphite and other emerging high technology applications which can command a premium price.

All eyes will be on upcoming news flow including:

- University of Adelaide graphite / graphene test work results
- An update on the South Korean assets
- Progress on end user / offtake discussions

Hexagon is evaluating the development options for the three graphite projects in South Korea.


Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Wed, 09 Mar 2016 15:35:00 +1100 https://www.proactiveinvestors.com.au/companies/news/137059/hexagon-resources-ltd-raises-135m-for-graphite-project-development-67414.html