Elcora Resources Corp. (
TSX: V.ERA,
Stock Forum) CEO Troy Grant said he is pleased with results of tests that aim to determine the suitability of graphite extracted from its Ragedara mine in Sri Lanka for the production of high expansion ratio expandable graphite.
Elcora, which is changing its name to Graphene Corp., is planning to deliver premium graphite to end users that include producers of lithium-ion batteries, steel producers and makers of lead pencils.
The company is also aiming to establish itself as a producer of graphene, the new “wonder material” that is prized for its strength, flexibility and conductivity.
Elcora said in a press release the first stage of the testing by SGS Canada Inc. at Lakefield Ontario, was for the purpose of characterizing the size reduction of the graphite and to produce samples for further processing.
Nova Scotia-based Elcora said the successful tests are the first stage of a four step process to develop a circuit that will minimize processing damage to the graphite crystal morphology while optimizing flake expandability and ultimately effective conversion to graphite.
Highlights of the report are as follows:
- Samples have successfully been produced to allow progression to secondary size reduction tests scheduled to be conducted October 23-24, 2014.
- An important first step towards the eventual target of producing pristine graphite crystals for the next stage of size reduction has been achieved.
- The high rate of flotation indicates that crowded froth flotation could be an effective mechanism of producing high grades early in the circuit.
- Successful flotation without reagents at both high grade and recoveries indicate that a scalping circuit could be used resulting in less circuit complexity and lower capital costs.
“The accelerated pace at which we are streamlining the proposed production process for Ragedara, and lab testing the ability to produce graphene and other high-value materials from the Ragedara graphite is highly exciting for the company and shareholders, and these milestones should create demonstrable future value for the shareholders,’’ said Grant.
The second phase of testing is scheduled for later this month and will be conducted on material prepared by SGS Canada Inc. Step two tests will further reduce the size of the particles to that of the individual graphite crystals by liberating the individual graphite crystals from other graphite and from silica and other impurities.
Trading at 18 Cents on Thursday, Elcora has a market cap of $7.5 million, based on 41.6 million shares outstanding. The 52-week range is 49 cents and 10 cents.
Elcora recently agreed to acquire a 40% stake in Sakura Graphite Ltd., the owner of the Ragedara graphite mine, a former state-owned operation, which produced as much as 18,000 tonnes of high purity graphite annually from 1974 to 1985.
FULL DISCLOSURE: Elcora Resources is a client of Stockhouse Publishing.