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.
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.
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.