Triton Minerals starts trial production of enhanced graphite products

Triton Minerals (ASX:TON) has commenced trial production of enhanced graphite products at partner Yichang Xincheng Graphite Co., Ltd’s (YXGC) Dongyang factory in China.This includes creation of polystyrene sheets with embedded expanded graphite and high strength composite graphite sheets from graphite concentrate sourced from Triton’s Mozambique projects (TMG).It could also have early income in 2016 with initial production of enhanced graphite products from its joint venture plant in Xingshan with China’s Yichang Xincheng Graphite Co., Ltd (YXGC), which will source flake graphite locally for the first few years. The Nicanda Hill Definitive Feasibility Study also remains on track for completion, along with the Environmental and Social Impact Assessment by the end of 2015.Aassay results from the resource infill drilling program are now starting to be received, which could lead to an upgrade in resource classification.Metallurgical testing is reviewing flotation options to ensure the most cost effective and efficient graphite recovery process will be implemented.Brad Boyle, managing director, commented:“The strong support of both the Mozambique and Chinese governments has enabled Triton to rapidly advance all the projects and operations.    “YXGC has now identified further uses for TMG products and the commencement of the trial graphite production at the Dongyang factory is a very exciting time for the company.“Finally, drilling is now underway at Ancuabe and initial indications of the graphitic mineralisation are encouraging.”TMG ProductsTrial production of enhanced graphite products from graphite concentrate sourced from Triton’s Mozambique projects (TMG) at YXGC’s existing Dongyang factory has started.This includes creation of polystyrene sheets with embedded expanded graphite that act as a flame retardant and high strength composite graphite sheets.High strength composite graphite sheets are used for of automotive body parts and engine components, sealing products and many high-pressure industrial applications.China Joint VentureAdditional tests by YXGC on graphite sourced from Triton’s Mozambique projects (TMG) have confirmed they are suited for use in all of the YXGC’s enhanced graphite products range as well as a new high-value composite graphite product currently being developed.    Further tests will be carried out to assess the suitability of TMG in a more diverse range of enhanced high-value graphite products.At the proposed joint venture site, early works are continuing with the construction of access roads, clearing and ground preparation split into three levels totalling approximately 16 acres.The Xingshan plant site is located next to a hydro power substation, river loading facilities and a major highway.Environmental permits have been received for construction of the plant.The Xingshan Regional Government is working closely with Triton and YXGC to develop the graphite production plant as soon as possible and is in position to provide financial concessions in order to facilitate development.     Triton has also formally registered the Hubei Xingshan Triton Technologies Pty Ltd (HXTT) with the Xingshan government.Nicanda Hill Definitive Feasibility StudyThe DFS is progressing well and is currently on track for completion by the end of 2015 and within budget. Drilling is almost complete with a limited number of hydrology, sterilisation and water supply drill holes to be finished over the next few weeks.The company has also started to receive assays from the resource infill drilling program from the Genalysis laboratories.Results will be used to confirm the current resource interpretation and to establish the optimum grade control pattern within the limits of the Years 1 to 10 design pit.This will also provide sufficient information to underpin an upgrade in resource classification of material significance and form the basis of developing a substantial quantity of proven graphite reserves to both underpin the project economics and reduce the risk profile.In addition, design for the ROM pad, graphite processing plant, flow sheet and site layout are almost complete for the final phase of the DFS assessment.MetallurgyMetallurgical test work program is well advanced with a bulk sample being processed, assessed and refined at the SGS laboratories in Perth. This is designed to refine and enhance the flow sheet design to optimise the established high recovery rates and high graphite concentrate grades of the flotation process and they are to be adopted at the Nicanda Hill processing plant.Alternative flotation methods such as stand-alone column flotation chambers are being assessed that could keep down capital expenditure in the processing plant.Structural steel requirement for a setup using column cells is significantly less than that for a conventional float chambers. The company expects to receive in the coming weeks laboratory results that will determine whether Nicanda Hill graphite is suitable for the creation of spherical graphite, graphene oxide and ultimately graphene products.Positive outcomes will provide Triton with additional market avenues, creating an opportunity to become a leading supplier of high quality graphite products that are used in the growing energy storage and electric vehicle markets.    Enhanced Graphite Products in MozambiqueTriton is currently reviewing in conjunction with YXGC a number of options and site locations including the potential construction of the enhanced graphite products factory next to the Nicanda Hill deposit.This has the benefits of the use of established mine infrastructure, power and water. Further benefits include an available local workforce, land access as the DUAT and environmental approval would already be approved under the mining license and reduced transportation costs.These could help to reduce capital and operating costs for the joint venture project while the in-country value adding is aligned with the current objectives of Mozambique’s fiscal and mining regimes.Ancuabe Exploration ProgramTriton has started a limited initial drilling program to test 10 VTEM-based targets at the Anucabe Project. Earthworks, carried out in clearing and preparation of some drill pads, has already exposed limited graphitic mineralisation at surface, which includes very high grade and jumbo flake graphitic material.These near-surface finds confirm the previous identification of graphitic outcropping. However, the company added that delineation of a potential economic resource will require a more extensive drilling program over the next 6-12 months.Based on the historic mining in the region, the outcropping and surface mapping to date, Triton believes the resource style of graphite mineralisation at Ancuabe is likely to be very high-grade, relatively low-tonnage with flat-dipping graphite zones. This contrasts with the Nicanda Hill style of graphitic mineralisation, which is high grade, very large tonnage and steep dipping.AnalysisTriton Minerals is well funded with $8.6 million in cash and is also well on the path towards becoming a vertically integrated graphite producer.This will add value to the company with the production of enhanced graphite products including polystyrene sheets and composite graphite sheets.Already, trial production is already underway to prove the ability to produce these products from TMG.Metallurgy is also assessing the potential for its graphite concentrate to produce spherical graphite, graphene oxide and ultimately graphene products that used in the energy storage and electric vehicle markets.This includes creation of polystyrene sheets with embedded expanded graphite and high strength composite graphite sheets from graphite concentrate sourced from Triton’s Mozambique projects (TMG).Production from the joint venture plant in Xingshan could begin in mid-2016, providing the company with a source of income.Share Price Catalysts- Breaking ground for the joint venture enhanced product site;- Assay results from Nicanda Hill drilling;- Upgrade of resource classification at Nicanda Hill; and- Nicanda Hill metallurgical test results.Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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