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.
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
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.
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.