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NEWS
Hexagon fully backs McIntosh
Testing of large flake graphite from the
McIntosh project has confirmed that it
can be concentrated to an ultra-high pu-
rity through a simple, low-cost process,
according to Hexagon Resources Ltd.
Refined concentrate grades of 99.99%
weight graphite were achieved via a pro-
prietary thermal purification technique
conducted by Hexagon’s US-based tech-
nology partner NAmLabs.
It was reported that McIntosh material
is “easily purified” as the impurities were
on the surface of the flake rather than
trapped inside.
Hexagon managing director Mike
Rosenstreich told Paydirt the results
were further verification of the potential
revealed in earlier test work conducted
on material from McIntosh in the East
Kimberley region of Western Australia.
“Essentially, we are proving that what
was a pretty ordinary product aimed at
the lithium-ion battery anode market is
now turning into a diverse range of prod-
ucts; premium products at premium pric-
es,” he said.
Test work continues to give Hexagon
confidence its single bulk concentrate
from McIntosh is useable beyond the
lithium-ion battery market and into the
higher-priced expandable graphite sec-
tor and other large flake markets, includ-
ing the advanced technical applications
sector.
The market has taken some notice of
the breakthroughs Hexagon is making,
however, the noise experienced in the
graphite sector during 2011 has dissi-
pated and the task of promoting stories
such as the one unfolding at McIntosh is
subsequently harder.
While there is appreciation the time
Rosenstreich spends educating inves-
tors on the relevance of graphite and the
broader market metrics, there is still a
knowledge gap to be overcome, particu-
larly now that the limelight is firmly on the
importance of lithium and cobalt in the
battery sector.
“Graphite had sometime in the sun in
2011/12, and now it is back in the shad-
ow of lithium and cobalt. I think people
appreciate that we are making an effort
to get around and educate people on
graphite and how important it is and in
terms of trying to specifically standout
from our peers, I think test results like we
have produced achieve that,” Rosenstre-
ich said.
“2011 was a bit of an aberration for
graphite because of stockpiling or the
PAGE 16 FEBRUARY 2018 AUSTRALIA’S PAYDIRT
Hexagon believes it has special graphite material at McIntosh
market structure issue around graphite
concentrate, but we are seeing lithium
and cobalt prices push up not necessar-
ily from a market manipulation stockpil-
ing reason.”
Rosenstreich said lithium and cobalt’s
status as tradeable commodities made
these markets easier to understand than
the segregated graphite space.
“Graphite is more like a product, so we
are trying to be as systematic as pos-
sible in unpicking our opportunities and
differentiating ourselves in the market,”
Rosenstreich said.
“In terms of overcoming that lack of
knowledge or lack of familiarity with an
industry that is resurgent or used in appli-
cation or technologies, our holding hands
with NAmLabs in US has been terrific;
they truly do have very long experience
in the graphite and advanced materials
and battery materials spaces. That gives
me confidence when I step out and make
Mike Rosenstreich
statements about the technical aspects
of our product.”
Having just started to dip his toe into
the graphite game, Rosenstreich is studi-
ously working through product develop-
ment opportunities by conducting a suite
of test work.
“The first part of 2018 will see Hexa-
gon carry on with some second stage
processing test work to help shape the
flow sheet,” Rosenstreich said.
“We did a large float component there,
we want to preserve and sell that at a pre-
mium. Our original flow sheet that came
out in our May 2017 PFS completely ig-
nored all that. So, really the downstream
test work has an important role feeding
back into how we design stage one.”
The sale of a non-core investment late
last year delivered $1 million into Hexa-
gon’s coffers and will see the company
funded for further test work in the first
part of 2018.
In the meantime, Rosenstreich will be
on the front foot presenting McIntosh ma-
terial to potential off-takers.
“Now that we have set a platform for
the quality of our material across a range
of attributes, I’d like to think that we are
in a position to close on some off-take
agreements,” he said.
“I think it is important to say that un-
like lithium and cobalt or perhaps lead
and zinc, there’s a real courtship process
involved in getting an [graphite] off-take.
While some people can be dismissive
of a MoU, I’d be hopeful of being able to
sign some MoUs to start the courtship
process.”
– Mark Andrews