SRG:CC - SRG Mining Announces Strategic Corporate Update Updated Feasibility Study Underway To Double Mine Production Second Transformation CSPG Preliminary Economic Assessment Also Awarded
(TheNewswire)
Montreal, Quebec – TheNewswire - May 18, 2022 - SRG Mining Inc. (TSXV:SRG) (“ SRG ” or the “ Company ” ) today announced further details on thestrategic corporate plan to develop its Lola Graphite Project in theRepublic of Guinea (the “ Lola Project ”) into a fully integratedsupplier of battery anode material to the European market. Theintegrated business model would result in the creation of amine-to-market active anode material producer, hosting a largehigh-purity graphite production mine and concentrator in Africa and avalue-added, coated spherical purified graphite (“ CSPG ”) conversionfacility in Europe.
Two Studies Underway
The Company announced today the start of anindependent, updated feasibility study (the “ Updated Feasibility Study” or“UFS ”), which will include basicengineering, to confirm technical opportunities and capital andoperating costs for target initial production of 100,000 tonnes perannum (“ tpa ”) of graphite as concentrate from the Lola Project. TheUFS follows the 2019 Feasibility Study which was prepared by DRAGlobal Limited (“ DRA ”).
Following extensive consultation with its partners,technical consultants, industry participants and potential offtakepartners SRG has concluded that an increase in concentrate production,from 50,000 tpa as disclosed in the 2019 Feasibility Study to 100,000tpa, is expected to significantly increase capital efficiency andproject economics. The Updated Feasibility Study will also be preparedby DRA and is scheduled to be completed in Q4 2022.
In parallel with the UFS the Company also announcedtoday the start of an independent, preliminary economic assessment(“ PEA ”) of initial options for the start-up of a secondtransformation step to produce CSPG from the Lola Project graphiteconcentrate. The PEA will be prepared by Dorfner Analysenzentrum undAnlagenplanungsgesellschaft mbH (“ Anzaplan ”), aleading consultancy and engineering company for industrial, specialtymineral and metal projects, based in Hirschau, Germany. The PEA isscheduled to be completed in Q1 2023.
An integral part of the PEA will be to update existingmetallurgical test work on spheroidization, purification and coatingaspects to produce a high-quality CSPG product. The Company willprovide Anzaplan and its partners with part of its 10 tonnes bulksample concentrate, which it has available from previous pilot-scalemetallurgical test work. The results of the additional metallurgicaltest work will also provide valuable samples for future offtakers toaccelerate the extensive product qualification and test work requiredby cell manufacturers.
“These studies are a continuation of the previouslyannounced strategy and will enable the Company to advance discussionswith both financial institutions as well as potential customers,”said Matthieu Bos, President and Chief Executive Officer. “Given theprojected surge in demand for graphite from the electric-vehiclerevolution and renewable energy technologies, the Lola Project will beof significant strategic importance for auto makers and clean-energycompanies looking to secure a long-term, reliable supply ofhigh-quality graphite.”
Financing and Offtake DiscussionsProgressing
The Company is advancing discussions with multiple parties who have expressed interest in providingdebt financing to advance SRG towards first production. Binding offtake offers have been received for more than 50%of the initial 100,000 tpa graphite concentrate production .
SRG will provide further commentonly if a specific transaction or process is concluded, or if furtherdisclosure is required or deemed appropriate. There can be noassurance that the Company will pursue any transaction or that atransaction, if pursued, will be completed.
About SRG Mining
SRG Mining is a Canadian-based mining company focusedon developing the Lola Graphite Project located in the Republic ofGuinea, West Africa. The Lola Graphite Project has a Probably Reservesof 42Mt at a grade of 4.2% Cg. SRG aims to develop a fully integratedsource of battery anode material to supply the European lithium-ionand fuel cell markets. With attractive operating costs, proximity toEuropean end-markets and strong ESG credentials, the Company is poisedto become a reliable supplier while promoting sustainability andsupply chain transparency. SRG is committed togenerating sustainable, long-term benefits that are shared with thehost countries and communities where it operates.
About DRA Global Limited
DRA Global Limited (ASX: DRA | JSE: DRA) is amulti-disciplinary consulting, engineering, project delivery andoperations management group predominantly focused on the mining andminerals resources sector. DRA has expertise in mining, minerals andmetals processing and related non-process infrastructure includingsustainability, water and energy solutions for the mining industry.DRA delivers advisory, engineering and project delivery servicesthroughout the capital project lifecycle from concept through tooperational readiness and commissioning as well as ongoing operations,maintenance and shutdown services.
For additional information, please visit SRG’swebsite at www.srgmining.com .
Contact :
Matthieu Bos
President & CEO
Email: m.bos@srgmining.com
Neither the TSXV nor its RegulationServices Provider (as that term is defined in the policies of theTSXV) accepts responsibility for the adequacy or accuracy of thisrelease.
This press releasecontains "forward-looking information" within the meaning ofCanadian securities legislation. All information contained herein thatis not clearly historical in nature may constitute forward-lookinginformation. Generally, such forward-looking information can beidentified by the use of forward-looking terminology such as“plan”, “result”, “confirm”, “target”, “increase”,“expect”, “scheduled”, “enable”, projected”,“drive”, “aim”, “realise”, “growth”, “goals”,“continue”, “advance”, “potential”, “will”,“demonstrate”, “deliver”, “believe”, or variations of suchwords and phrases or state that certain actions, events or results"may", "could", "would" or"might". Forward-looking information is subject to known andunknown risks, uncertainties and other factors that may cause theactual results, level of activity, performance or achievements of theCompany to be materially different from those expressed or implied bysuch forward-looking information, including but not limited to: (i)volatile stock price; (ii) the general global markets and economicconditions; (iii) the possibility of write-downsand impairments; (iv) the risk associated with exploration,development and operations of mineral deposits and mine plans for theCompany’s mining operations; (v) the risk associated withestablishing title to mineral properties and assets includingpermitting, development, operations and production from theCompany’s operations being consistent with expectations andprojections; (vi) fluctuations in commodity prices, finding offtaketakers and potential clients or enforcing such agreements against sameand other risks and factors described or referred to in the sectionentitled "Risk Factors" in the MD&A of the Company andwhich is available at www.sedar.com, all of which should be reviewedin conjunction with the information found in this news release.
Although the Company has attempted to identifyimportant factors that could cause actual results to differ materiallyfrom those contained in the forward-looking information, there may beother factors that cause results not to be as anticipated, estimatedor intended. There can be no assurance that such forward-lookinginformation will prove to be accurate, as actual results and futureevents could differ materially from those anticipated in suchforward-looking information. Such forward-looking information has beenprovided for the purpose of assisting investors in understanding theCompany's business, operations and exploration plans and may not beappropriate for other purposes. Accordingly, readers should not placeundue reliance on forward-looking information. Forward-lookinginformation is given as of the date of this press release, and theCompany does not undertake to update such forward-looking informationexcept in accordance with applicable securities laws.
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