Buried in the LMB announcement regarding Geumam you have this excerpt:
"MLA analyses of flake graphite in the primary zone at Geumam by Actlab Laboratories, Canada, confirm that the flake graphite is relatively fine grained with maximum flake diameters averaging from 40 to 60 µm"
I don't know what's worse the fact that in that entire announcement that is the only mention it makes to the size of the flake or that it is in fact that small! Probably the way nature of the announcement is what's worse!
FACT is the the graphite is quite pure but also fine and let me tell you fine flake doesn't command premium prices, you could micronise it and use for some industrial purposes but it would be extremely misleading to think fine flake could be economically processed to be comparable to synthetic, outrageous in fact.
few more details from that release and others on the history of the flake that's been mined there before, look out for the critical word I've helped to draw your attention to:
"A small mining operation and flotation processing plant was established at Geumam in 1986, consisting of a run-of-mine stockpile, conveyor, feed hopper, ball mill, two flotation cells (Rougher and cleaner cells), and a regrind ball mill. The plant was capable of producing 6tpd FINE flake graphite flotation concentrate (>85% Cg), which it sold to export markets in Japan and Europe"
"The mill was subsequently upgraded with an alkaline-leach plant to produce high-grade FINE flake graphite concentrate (93-97% Cg) in July 1987 (KMPC, 1988), which it sold to domestic markets for micronizing into superfine graphite powders. The mine ceased operations in about 1992."
Why on earth would the entire infrastructure historically be set up to process fine flake when in fact majority is not fine? lol be a little realistic here.
btw i'm not disputing that this mine could be profitable with low cost production but if you're counting on $3 grand a ton you're in for a shock.
If you think things through logically the acquirement and price paid for the mine/infrastructure also becomes to make more sense.
HXG Price at posting:
83.5¢ Sentiment: None Disclosure: Not Held
