Flinders Resources Limited (“Flinders” or the “Company”) (TSXV: FDR) announces the second stage of its growth strategy to position the Company as a supplier of choice to the rapidly expanding and game changing lithium ion battery energy storage market.
Blair Way, President & CEO states, “As the only western producer of natural flake graphite, Flinders is uniquely placed to take a leading role in the supply of high-purity graphite as required by the lithium ion battery market. With a business model based on production, not just promise, we are now able to execute Stage 2 and focus on supplying ultra-high purity graphite concentrate into the plus $10B synthetic graphite market. Previous testwork lead to permitting in 2001 of a high purity (99.9%) graphite plant at the Woxna site, giving us cause for optimism in the commercial applicability of this business model”
In 2001, Boliden Contech, a Swedish technical consultancy, undertook detailed design of a flow sheet to produce plus 99.9% ultra-high purity graphite concentrate from Woxna’s graphite concentrate. Subsequent testing of jet-milled Woxna concentrate by the Department of Materials Chemistry, Ã…ngstrÃ¶m Laboratory, at Uppsala University in Sweden yielded excellent results for battery applications and found Woxna flake graphite performed well as the anode in lithium-ion batteries with high discharge capacity and packing density. Based on these results, a high-purity processing plant was subsequently environmentally permitted in 2001 (the permit has subsequently lapsed), and a high-purity plant was partially constructed at the Woxna site. Flinders owns all research and historic economic studies tied to this high purity project, which allows the Company to fast track a suitable modern flow sheet towards production of value-added graphite.
Since this historic high-purity work was conducted at Woxna 14 years ago, global interest in lithium ion batteries, which contain significantly more graphite than lithium, has increased dramatically. Battery energy storage from renewable energy is now a reality, highlighted by the recent launch of Elon Musk’s Tesla lithium ion battery as an energy storage system on both a home and industrial scale, called Powerwall and Powerpack respectively.
Flinders is currently undertaking additional work to improve the 2001 high purity flow sheet to confirm both technical and economic applicability. This design refinement is targeting modernisation to increase economics and reduce environmental impacts. Fresh concentrate samples have been sent to laboratories for test work to verify the 2001 design and the Company is in conversation with various technology providers.
The Qualified Person for Flinders’ projects, Mr. D. Blair Way, President, CEO and a director of the Company and a Fellow of the Australasian Institute of Mining and Metallurgy, has reviewed and approved the content of this news release.
On behalf of the Board,
Blair Way, President and CEO
For more information contact:
+1 604 685 9316
Certain information in this news release may constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, “Forward-Looking Statements”). All statements, other than statements of historical fact that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are Forward-Looking Statements. Forward-Looking Statements are often, but not always, identified by the use of words such as “seek,” “anticipate,” “believe,” “plan,” “estimate,” “expect,” and “intend” and statements that an event or result “may,” “will,” “can,” “should,” “could,” or “might” occur or be achieved and other similar expressions. Forward-Looking Statements are based upon the opinions and expectations of the Company based on information currently available to the Company. Forward-Looking Statements are subject to a number of factors, risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the Forward-Looking Statements including, among other things, the Company has yet to generate a profit from its activities; there can be no guarantee that the estimates of quantities or qualities of minerals disclosed in the Company’s public record will be economically recoverable; uncertainties relating to the availability and costs of financing needed in the future; competition with other companies within the mining industry; the success of the Company is largely dependent upon the performance of its directors and officers and the Company’s ability to attract and train key personnel; changes in world metal markets and equity markets beyond the Company’s control; mineral resources are, in the large part, estimates and no assurance can be given that the anticipated tonnages and grades will be achieved or that the indicated level of recovery will be realized; production rates and capital and other costs may vary significantly from estimates; changes in corporate goals and strategies, the Company’s preliminary economic assessment is no longer current or valid and the Company has no plans to complete a new preliminary economic assessment, a pre-feasibility or feasibility study on the project, as a result there is an increased risk of technical and economic failure for the Woxna graphite project; unexpected geological conditions; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; all phases of a mining business present environmental and safety risks and hazards and are subject to environmental and safety regulation, and rehabilitation and restitution costs; the Company does not maintain insurance against environmental risks; and management of the Company have experience in mineral exploration but may lack all or some of the necessary technical training and experience to successfully develop and operate a mine. Although the Company believes that the expectations reflected in the Forward-Looking Statements, and the assumptions on which such Forward-Looking Statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on Forward-Looking Statements, as there can be no assurance that the plans, intentions or expectations upon which the Forward-Looking Statements are based will occur. Forward-Looking Statements herein are made as at the date hereof, and unless otherwise required by law, the Company does not intend, or assume any obligation, to update these Forward-Looking Statements.