Hey TopDog, why don't you read the Sept Quarter Report before you question management transparency. The Company clearly reported the results of the Graphite testwork in China in section 3.2 of the Sept Q report which is below.
Obviously the results of the graphite testwork weren't encouraging and "are not considered to be a priority".
HXG has far greater confidence in the commercial potential RapidSX REE processing technology which is now the primary focus of the business. I for one believe this is a far greater driver of shareholder value, given the growing demand for REEs and the strategic necessity to disrupt the Chinese dominance in the downstream processing market.
3.2 McIntosh Flake Graphite Project On 1 October 2019, Hexagon advised that it had received notice from Mineral Resources Limited (ASX: MIN) of its intention to withdraw from the McIntosh Joint Venture effective 31 October 2019. Hexagon will regain 100% interest in the McIntosh project tenements and all data and samples generated from MIN’s work. In mid-2017, Hexagon completed a pilot program treating 2.4 tonnes of McIntosh drill core to produce a bulk graphite concentrate targeting the lithium-ion battery anode market. As part of the feasibility study MIN and subsequently, Hexagon undertook further testwork on drill core samples from the Emperor deposit. The objective of Hexagon’s work program was to develop a flow sheet capable of preserving larger graphite flakes whilst achieving reasonable concentrate grades and graphite recovery. Flowsheet development was focussed on different P80 primary and secondary regrinds utilising gentle polishing mills and stirred mills followed by multiple stages of flotation. Reagent optimisation including the use of lime and sodium silicates to suppress sulphide and mica/muscovite gangue minerals was also investigated. Results were received in late September and are being assessed by Hexagon, however with the Company’s increased downstream focus this is not considered to be a priority. Some initial observations are that results appear to reflect the pilot work completed in 2017, albeit the recovery, whilst not optimised is lower (2017 – 93%). This appears related to the very high (12-14%) sulphide content in these samples which are generally from deeper, less oxidised portions of the Emperor deposit compared to previous samples. More specifically, samples from 3 drill holes totalling 276 kg at a combined head grade of 4.47% wt.% C were submitted to a specialist testwork facility in China. Hexagon’s former Chief Development Officer reported that the outcome of the flowsheet testwork has confirmed and identified an appropriate mineral concentration flowsheet for McIntosh Emperor ore. The treatment process could utilise a coarser primary ore grinding, and rougher flotation concentrate regrind via polishing mill at P80 106um to be followed by 10 stages of cleaner flotation stages with gentle stirred mills in between cleaners. The final product concentrate (10th cleaner) achieved a target commercial grade of 94-95% wt. % C content at a recovery of 82.98 %. This was from non-optimised, open-circuit work and it was recommended that Locked-Cycle and optimisation work should be undertaken. 5 Hexagon has ongoing responsibilities and commitments centred on the McIntosh tenements to a variety of stakeholders. It is reviewing these obligations and ongoing work programs to preserve and generate maximum value from these holdings.
HXG Price at posting:
6.0¢ Sentiment: Buy Disclosure: Held
(20min delay)
