MinRes graphite JV begins study

Mineral Resources’ diversification strategy continues to gain ground as its joint venture with Hexagon Resources has begun a feasibility study at the McIntosh graphite project in the Kimberley.

The companies recently reached an agreement whereby MinRes will fully fund the development costs for a 51 per cent stake in the project.

MinRes has approved the initial budget to allow a drilling program to begin next month.

“The aim of the drilling program is to test the resource potential of new targets east of the known resource, confirm and upgrade existing targets and resources and generate approximately 17 tonnes of core samples for metallurgical test work,” the JV said in a statement.

The drilling program, along with the study, is expected to be completed by October to guide a mine decision.

Hexagon released a pre-feasibility study on the project last year, which detailed a development capex of $148 million.

The graphite JV adds another dimension to MinRes’s offering, which also includes mining services, iron ore, lithium and manganese.

Shares in MinRes finished the day 5 per cent higher at $16.04 each, while Hexagon shares were flat at 20 cents each.