MLS Continues to Advance and Expand its Flagship Lac Carheil Graphite

Metals Australia Ltd (ASX: MLS) continues to make significant progress advancing its flagship Lac Carheil high-grade flake-graphite development project in the Tier 1 global mining province of Quebec, including:

• Comprehensive metallurgical testwork¹ confirming higher quantities of higher-value coarse flake graphite in the Northwest zone of the Mineral Resource² (Figure 1 & Table 1), with average mass recoveries of 32.4% in the + 100# product fraction (+149 micron), compared to ~ 25.5% in the Southeast portion of the resource. This represents a 27% increase in the proportion of coarse flake graphite in this zone of the resource where coarse flake attracts premium pricing, as outlined in our scoping study³.
• Enhanced processing capability achieved in design updates to the flake graphite concentrator flowsheet⁴ to maximise recovery of coarse flake and optimise production efficiency – at an initial production rate of 100,000 tonnes per annum of concentrate (+95% Graphitic Carbon – Cg) (Figure 2).
• Land holding at Lac Carheil increased by 62% to 11,905 hectares through pegging of further claims covering potential southeast extensions of the existing resource and for placement of key infrastructure.
• Downstream design work⁴ set to commence to test and select the preferred graphite purification technology, conduct a plant site location study and develop a Project Economic Assessment (PEA) for the downstream Battery Anode Material (BAM) refinery, with a bulk concentrate sample being generated by SGS Canada for shipment to Dorfner Anzaplan facilities in Germany.
• Applications lodged with Government agencies to access grants under various funding programs, with further submissions planned, to advance Pre-Feasibility Study.
• Extensive local consultation and engagement with consultants, contractors, government and First Nations organisations, including the economic development arm of the Uashat Mak Mani-Utenam, in line with the Company’s commitment to establish a socially acceptable project for all stakeholders.
• Contract award readiness for additional work scopes integral to the broader PFS study following approval of a drilling permit, including Mineral Resource Estimation, mining design and scheduling and Environmental and Social Impact Assessment (ESIA) studies.

In addition to the advancements being made by the Company, the strategic value of the Lac Carheil high- grade flake-graphite project stands to be significantly enhanced from the outcome of a 30-day consultation period announced by the Canadian Government on August 26th 2024 (September 10 to October 10, 2024) seeking inputs on the potential application of a surtax on a range of Chinese imports related to critical manufacturing sectors, including critical minerals.

This follows the imposition of a 100% surtax on Chinese-made EVs due to come into effect on October 1, 2024, and a 25% surtax on imports of steel and aluminium from China, effective October 15, 2024. Lac Carheil’s strategic significance is also…