Graphite – from discovery to resource

Heilongjiang under the microscope

5th Graphite & Graphene Conference
8-9 December 2015 London
Andrew Scogings, PhD Geology
CSA Global Pty Ltd; KlipStone Pty Ltd
Natural Graphite Report: Strategic Outlook to 2020

This 500-page report reviews every major graphite producing and exploring
company around the world, as well as detailing global exploration activity. It also
contains an in-depth focus on graphene, including its production, supply and
demand.

Key topics include:

• Unique country supply reviews including: China, Brazil, India, North Korea, and
Canada
• Major demand drivers – Li-ion batteries, refractories, & emerging markets
• How will prices react? Historical analysis, supply and demand
• Critique of the graphene revolution

The data for the report was collected from multiple locations using primary
research including methods such as thin-section petrography, mine and plant
visits.
To download a sample of the report visit www.indmin.com/graphite-report
Graphite -Discovery to Resource
• Trenching & outcrop samples
• Geophysics
• Drilling
• QA/QC
• Assay
• Petrography
• Geological domains
• Extractive metallurgy
• Resource model
• Resource classification
 Exploration trenching
Channel sampling outcrop Trenching and channel sampling

Trench &
Channel

Channel

Source: Ardiden Ltd Source: TanzOz Pty Ltd

 Geophysics
Versatile time domain EM (VTEM) Fixed loop EM (FLEM)

Graphite

Graphite deposit
EM plates

Source: IMX Resources

 Exploration drilling
Reverse circulation (RC) drilling RC samples in chip trays

RC Chips

Source: Kibaran Resources

 Exploration drilling
Diamond core drilling Drill core in core tray

Source: IMX Resources Source: Hexagon Resources

 Assaying
• Carbon may occur in several different forms in rocks, including organic
carbon, carbonates or graphitic carbon
• The simplest way to analyse a sample for graphite is by loss on ignition (LOI)
at 1,000oC, determined as the percentage weight loss
• Impurities such as calcite that contains CO2, or clay and mica that contain
structural water, contribute to weight loss, resulting in apparently higher
‘graphite’ content than anticipated

• Non-graphite carbon should be removed before assaying TGC

• Impurities can be removed by heating or acid wash

Source: Mitchell (1993)

 Why do QA / QC ?
This is where
we want to be
Source: Scogings & Coombes (2014)
 QA / QC
Standard sample Original vs Umpire

Actual

Expected
Bias

Source: Scogings & Coombes (2014)

 Petrography
Polarising microscope Polished thin sections (30 micron)
Drill core
Camera
RC chips

Reflected
light

Source: Hexagon Resources

Source: KlipStone

Transmitted
light
 Why Petrography?
Not all graphite is created equal

Mica

Graphite
Why Petrography?
Not all graphite is created equal

Large graphite flake

 Geological domains
Grade and weathering domains

Low Grade Zone

2 to 5% TGC

Source: IMX Resources

 Geological domains
‘Low Grade Zone’ >2% cut-off ‘High Grade Zone’ >5% cut-off

Source: IMX Resources

 Geological domains
Oxide Zone - no Fe sulphides
All sulphides are oxidised. Silicates are kaolinised

Source: IMX Resources

 Geological domains
Transitional Zone – kaolinised sillimanite, fresh Fe sulphides

Source: IMX Resources

 Geological domains
Fresh Zone – Unoxidised Fe sulphides, unaltered sillimanite

Source: IMX Resources

 Extractive metallurgy
Lab rod mill Lab flotation

Source: ALS Laboratory Perth

 Extractive metallurgy
Grade vs Recovery Flake size distribution

70
300 micron
45

65 40
Mass Carbon
35
60 500 micron

% Distribution
30
C Grade (%)

55
25

50 20

15
45
10
40 5

35 0
35 55 75 95 180 150 106 75 53 -53

C Recovery
Source: ALS Laboratory (%)
Perth Size (µm)
Why do metallurgical tests?
Graphite price are related to specifications (purity and flake size)

Source: Industrial Minerals Magazine

 Why do metallurgical tests?
JORC Code 2012 Clause 49

• “For (industrial) minerals that are defined by a

specification, the Mineral Resource or Ore Reserve
estimation must be reported in terms of the
mineral or minerals on which the project is to be
based and must include the specification of those
minerals.”

Source: JORC 2012

 Resource model
Block model

Low grade
High grade zone
zone

Source: IMX Resources

 Resource model
Resource classification
Criteria Inferred Resource Indicated Resource Measured Resource
Must not be Can be converted to a
Can the resource be Can be converted to
converted to an Ore Proved or Probable Ore
converted to a reserve? Probable Ore Reserve
Reserve Reserve

Adequately detailed Detailed and reliable

Limited geological and
Quality of information and reliable geological geological and sampling
sampling evidence
and sampling evidence evidence

Geological and grade Sufficient to imply

Sufficient to assume Sufficient to confirm
continuity between points but not verify

Source: Jacqui Coombes 2014 (pers. comm.)

Heilongjiang under the microscope
• Graphite flake size and metamorphic temperature
• European mine – Norway & Germany
• Heilongjiang mine – Luobei and Jixi
• Chinese exploration
 Metamorphism
‘Rule of Thumb’
Flake (grain) size increases with metamorphic grade

Metamorphic grade: Low Grade High Grade

Temperature 300-500 oC 500-700 oC >700 oC
Volatiles High H2O Low H2O
Rock type Slate / Schist Schist / Gneiss Gneiss / Granulite
Grain size Fine-grained Coarse-grained
Metamorphic facies Greenschist Amphibolite Granulite
 Metamorphism
Metamorphic facies Key minerals in graphitic rocks

• Greenschist
• Muscovite / chlorite / biotite / Na feldspar

• Amphibolite
• Muscovite / biotite / amphibole /
Granulite
sillimanite /Na-Ca feldspar

• Granulite
Amphibolite

Greenschist
• K feldspar / pyroxene / sillimanite / biotite
/ scapolite

Source: Wikipedia
 Global comparisons
Graphit Kropfmühl Skaland (Trælen)

Source: AMG Graphit Kropfmühl GmbH; Skaland AS

 Global comparisons
AMG Graphit Kropfmühl, Germany – coarse grained, easy liberation.
Low sulphide content. Diagnostic minerals = K-feldspar

Source: AMG Graphit Kropfmühl GmbH

 Global comparisons
Skaland (Trælen), Norway – coarse grained, readily liberated. Low
sulphide content. Diagnostic minerals = Amphibole

Source: Skaland Graphite AS

 Heilongjiang

Graphite
Source: Google Earth

Granite Graphite schist

schist
 Heilongjiang - Luobei

Graphite Granite Graphite schist

schist

Source: Kibaran Resources

 Heilongjiang - Luobei
Luobei Scapolite

Luobei Kibaran

Source: Kibaran Resources

 Heilongjiang - Jixi
Huanyu Energy

Pit Stockpile

Plant
Graphite Granite Graphite schist
Source: Google Earth

schist

Tailings
 Heilongjiang - Jixi
Huanyu Energy

Graphite schist Granite Graphite schist

Source: Huanyu Energy

 Heilongjiang - Jixi
Huanyu Energy K-feldspar, Sillimanite

Source: A Scogings
 Heilongjiang - Jixi
Jixi Puchen
Source: Google Earth

Plant
A

Plant
 Heilongjiang - Jixi
Jixi Puchen

Granite vein

Graphite Granite Graphite schist

schist

Oxidised ore

Source: A Scogings
 Heilongjiang - Jixi
Jixi Puchen Biotite, Pyroxene

Source: A Scogings
 Heilongjiang - Jixi
Jixi – Liumao Plant

Pit
Graphite Granite Graphite schist
Source: Google Earth

schist
 Heilongjiang mines
Jixi – Liumao

Graphite schist

Graphite Granite Graphite schist

schist

Source: A Scogings
 Heilongjiang - Jixi
Liumao Pyroxene, K-feldspar, Garnet

L1

Source: A Scogings
 Heilongjiang - Jixi
Liumao Pyroxene, K-feldspar, Garnet

L2

Source: A Scogings
 Chinese Exploration
Matrass Mining, Inner Mongolia
Matrass Mining ,Geology map
Andalusite schist

Source: A Scogings
 Chinese Exploration
Qingdao Hensen, Jixi K-feldspar, Pyroxene, Amphibole

Source: A Scogings
 Chinese Exploration
Qingdao Hensen, Jixi K-feldspar, Pyroxene, Amphibole

Source: A Scogings
 Conclusions
• Exploration should follow a systematic plan from discovery
through to resource definition
• Microscope examination is a useful tool to define geological
domains and likely processing characteristics
• Metallurgical tests should be based on geological domains
• Clause 49 of the JORC Code 2012 states that industrial
mineral resources must be reported by specification
• Graphite flake size increases with metamorphic grade (Rule
of thumb)
• Heilongjiang has significant remaining flake graphite
potential (not yet reached ‘peak graphite’ production).
 Thank you
The following organisations are thanked for their help:

• AMG Graphit Kropfmühl GmbH

• Ardiden Ltd
• CSA Global Pty Ltd
• Hexagon Resources Ltd
• Huanyu Energy
• IMX Resources Ltd
• Jixi Puchen Graphite
• Kibaran Resources Ltd
• Matrass Mining
• Norwegian Geological Survey
• ProGraphite GmbH
• Qingdao Hensen Graphite
• Skaland Graphite AS
• TanzOz Pty Ltd