iTech Minerals ITM has confirmed a 300% increase in the global measured, indicated and inferred mineral resource estimate (MRE) at its Eyre Peninsula graphite project in South Australia. The new resource sits at 35.2 million tonnes grading 6% total graphitic carbon (TGC) with a minimum 2% cut-off, compared to the previous 8.55Mt at 9% TGC with a 5% cut-off reported in October 2021. The higher confidence measured and indicated category has increased to 22.9Mt at 5.3% TGC, which constitutes approximately 65% of the new resource. Largest campaign iTechs MRE upgrade follows approximately 12 months of reverse circulation and diamond drilling, cited as the companys largest campaign since it listed on the ASX in 2021. Drilling focused on the Lacroma target, located 20 kilometres from iTechs proposed graphite processing plant for the Campoona spherical graphite project. The Lacroma indicated and inferred MRE has been reported as part of the Eyre Peninsula global resource. It totals 26.6Mt at 5% TGC, including an indicated 21.6Mt at 5.3% TGC and an inferred 5Mt at 4.6% TGC. Confidence to move forward Managing director Mike Schwarz welcomed the resource upgrade. This is a massive achievement after just 12 months of exploration and resource drilling, he said. We now have the confidence to move forward to the next phase of developing this exciting project and look forward to helping the world meet the graphite shortages which many analysts are predicting over the next decade. Low-cost operation The Lacroma target is believed to display many characteristics of a low-cost graphite operation. Its mineralisation occurs from the surface with a moderately shallow dip, implying a likely low strip ratio and early delivery of the product to market. It is also highly weathered and predominantly clay-hosted with potential for free dig in large sections of the deposit. Water management The groundwater table is over 80 metres deep, which would alleviate any issues relating to water management. There are reportedly negligible sulphides in the weathered horizon above 80m, with sulphide percentages increasing below this level. This is believed to be useful in alleviating issues with acid mine drainage and any sulphides affecting flotation. Simple metallurgy The metallurgy at Lacroma is also reported to be simple with exceptionally high recoveries. The simple geology and metallurgy of the Lacroma deposit give it all the hallmarks of a low-risk and potentially low-cost mining operation, which will no doubt prove especially important in a global market that has shown volatile graphite pricing, Mr Schwarz said. iTech has commenced bulk-scale flotation test work on Lacroma samples to determine how the graphite performs at larger scale. The process is expected to produce approximately 3 kilograms of concentrate, considered sufficient for purification and spheroidisation test work. Final grades and recoveries will be calculated when all assays have been received. Pilot plant iTech has commissioned a consultant to prepare costings for a graphite concentrate pilot plant based on the results of the Campoona and Lacroma metallurgical work. It will allow for the production of enough samples for qualification testing by potential offtake partners. The company is now planning an extensional drilling campaign on the southern part of the Lacroma resource with a view to adding more tonnes at low cost. Mr Schwarz said any further drilling would be subject to board approval and would likely commence in the new year when the local cropping season has finished.

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