Proactive Investors - Run By Investors For Investors

Hexagon Resources pursuing dual strategy to establish cash flow positive graphite business

Hexagon’s recent downstream scoping study to establish a graphite purification and processing plant highlight a compelling business investment case.
graphite
The company’s McIntosh graphite project is funded by Mineral Resources

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.

View full HXG profile View Profile

Hexagon Resources Ltd Timeline

Related Articles

1553096936_W-Resources---Michael-Masterman.jpg
June 29 2019
W Resources is about to make a name for itself as a serious European-based supplier of tungsten
Gold
March 20 2019
The company aims to unlock the potential of Japan’s gold resources
Drilling equipment on a Yandal site last year in 2018
January 10 2019
The ASX newcomer is backed by Northern Star Resources which holds a 15% stake.

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use