Volt Resources Ltd (ASX:VRC) Graphite Testwork Produces Exceptional Quality Concentrate

Volt Resources Limited (ASX:VRC) is pleased to announce that Namangale Pre-Feasibility Study (PFS) testwork has produced an exceptional graphite concentrate product for the Lithium-ion battery market. Excellent metallurgical results from both the Namangale 1 and 2 deposits that make up the majority of the JORC Resource at the Namangale Project have been received. The concentrates were produced from diamond core composite samples collected from the 2015 drilling program and were achieved through a conventional circuit of milling and flotation that was carried out at ALS in Perth. No industrial chemicals were used to achieve these results. The flotation flow sheet optimisation remains ongoing with the aim of further improving the purity and recovery of our graphite concentrate product offering.

Highlights:

- Excellent metallurgical flotation results with concentrates up to 98.3% Total Graphitic Carbon (TGC) in the +300 and +500 micron flake categories

- Excellent purity achieved without the use of chemicals

- Potential Namangale processing route offers significant cost advantage compared to synthetic graphite

- Further optimisation of the flotation flow sheet is ongoing to further improve purity

- Volt is very well placed to meet unprecedented demand from the Lithium-ion battery markets and provide a premium graphite product to market

- Discussions with potential off take partners and end-user groups in the US, Europe and Asia are progressing well

RESULTS SUMMARY

The graphite concentrate produced from Namangale 2 returned concentrate grade of up to 98.3% TGC with +300 and +500 micron flake and the graphite concentrate from Namangale 1 returned concentrate grades of up to 97.7% with +300 micron flake. Further test work is continuing to improve purity of the final concentrate product. Numerous samples returned have now demonstrated that the Namangale deposit can consistently provide clean, high-grade TGC graphite suitable for commercial applications mainly within the Lithium-ion battery market.

Executive Chairman, Stephen Hunt commented, "The results from this round of testwork are exceptionally good. We have been delighted with the repeatability of the results meaning these are not a once-off, and with more work from our very large resource, we are confident the results can even improve further. The quality of our product will be extremely attractive to potential off-take partners, and will also provide us with a high basket price. This is a tremendous outcome for the project - one which is rapidly shaping up to be world class on every level."

CLEAN GRAPHITE CONCENTRATE PRODUCED

The Company has demonstrated that it can achieve excellent purity results without the use of chemicals. Volt Resources has been able to demonstrate substantial cost of processing advantage compared to synthetic graphite and other graphite containing trace elements. The Namangale graphite concentrate is separated through a straightforward crushing and flotation process and importantly without the use of industrial chemicals. Clearly this processing advantage provides an enormous benefit to the underlying capital and operating costs associated with mining graphite.

RESULTS EXCEED STAGE 1 PFS MODELLING ESTIMATES

Metallurgical results received post stage 1 of the PFS has exceeded estimates, which were used in the earlier BatteryLimits models. Commenting on the results to date Phil Hearse from BatteryLimits, who are managing the metallurgy and the PFS for Volt said, "Achieving these high grade coarse concentrates for Namangale is very encouraging given that there is still a lot of opportunity for further optimisation of the test work program. BatteryLimits looks forward to working closely with Volt to develop these quality ore bodies".

Figure 1 (see link below) shows the location of the Namangale Project tenements and the main graphite prospects that have been identified to date. These lay within the 2,000km2 of the Company's tenement package. Volt has continued to build on its dominant tenement position in this extremely well located, high quality graphite area of Tanzania.

JUMBO FLAKE GRAPHITE DEMAND FORECAST TO INCREASE

Most independent forecasts confirm that demand for coarse flake graphite will increase in coming years driven by consumer and business demand from the Lithium-ion battery market, the emergence of the expandable graphite market and other high-tech industries.

Benchmark Mineral Intelligence forecasts estimate demand for graphite (carbon) used as anode material in lithium ion batteries is set to increase by over 200% in the next four years as global cell production surges on the back of maturing pure electric vehicle demand and the inception of the utility storage market. New price data from Benchmark has started to show rising prices for uncoated spherical graphite, 99.95% C, 15 micron in size, FOB China. Price ranges in the market have risen from $2,500 to $3,000/tonne in Q4 2015, to $2,800 to $3,200/tonne in Q2 2016.

CORPORATE UPDATE

Discussions with potential off-take partners and end-user groups in the US, Europe and Asia is progressing well. Volt's Executive Chairman Stephen Hunt is overseeing these discussions/negotiations and is currently reviewing numerous approaches received from potential off-take partners and end user groups.

CONCLUSION

The Board of Volt Resources considers the results to date continue to indicate that the Namangale Prospect is rapidly emerging as a world-class graphite deposit. The drilling program for the 2016 year has now commenced with the objective of upgrading a significant portion of the Inferred Resource into Indicated and Measured categories. Volt is committed to fast tracking current PFS towards a bankable Feasibility Study, followed by an investment decision towards production and capturing a meaningful portion of the unprecedented market demand for Super Jumbo and Jumbo flake graphite.

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About Volt Resources Ltd

Volt Resources Limited (ASX:VRC) (FRA:RBL) (OTCMKTS:VLTRF) is critical minerals and battery material company listed on the Australian Stock Exchange. We are a graphite producer and an emerging natural graphite anode producer. Volt has a 70% interest in the Zavalievsky Graphite business in Ukraine. The ZG mine and processing facilities have been in operation since 1934 and are near key markets with significant developments in lithium-ion battery production. ZG benefits from an existing customer base and graphite product supply chains based on excellent transport infrastructure covering road, rail, river, and sea freight combined with reliable grid power, ample potable ground water supply and good communications.

Volt acquired three licence applications that are prospective for lithium-borate mineralisation. The licence applications are in respect to a total area of 291km2, located in Serbia and are west and south-west of the Serbian capital, Belgrade.

Volt is progressing the development of its large wholly owned Bunyu Graphite Project in Tanzania. The Bunyu Graphite Project is ideally located near to critical infrastructure with sealed roads running through the project area and ready access to the deep-water port of Mtwara 140km from the Project. In 2018, Volt reported the completion of the Feasibility Study into the Stage 1 development of the Bunyu Graphite Project. The Stage 1 development is based on a mining and processing plant annual throughput rate of 400,000 tonnes of ore to produce on average 23,700tpa of graphite products. A key objective of the Stage 1 development is to establish infrastructure and market position in support of the development of the significantly larger Stage 2 expansion project at Bunyu.

      

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