Independent tests show expandability and purity of New Energy Minerals’ Caula graphite

By Meagan Evans. Published at Mar 14, 2019, in Small Caps

New Energy Minerals Limited (ASX:NXE | FRA:GGY) has announced the results of the first set of specialised independent tests on its 40% owned Caula Graphite and Vanadium project located in Northern Mozambique.

The independent metallurgical testwork, conducted by German Based NGS Trading and Consulting GmbH (NGS), indicates Caula graphite to be suitable for the production of expandable graphite, spherical graphite and all kinds of other applications including flame retardants and graphite foil.

Two composite samples of graphite concentrate, one from the Oxide Zone and one from the Fresh Zone, were submitted to NGS for purification tests, as well as a full suite of 25 different tests for the preparation of expandable graphite, conducted over a mix of all grain sizes.

Excellent expansion volumes were achieved for all flakes sizes with an average expansion volume of 295 mL/g achieved.

The following results were achieved:

- Expansion volumes of 430 mL/g for +500 micron flakes

- Expansion volumes of 390 mL/g for +300 to -500 micron flakes

- Expansion volumes of 350 mL/g for +180 to -300 micron flakes

Dr Bernard Olivier MD of NXE said, “The specialised independent testwork returned some truly excellent results for the Caula graphite samples and concluded that they could not find any restriction on the application of this type of expandable graphite.

“The report further states that the chemically purified flake graphite qualifies for the production of spherical graphite and all kind of other applications including flame retardants and graphite foil.”

As announced in February, NXE’s remaining 40% ownership in the Caula Graphite and Vanadium project (through its 50% shareholding in Balama Resources Pty Ltd) is currently subject to a Share Sale and Purchase Agreement (SSPA) with Auspicious Virtue Investment Holding Limited.

Balama is the subsidiary company through which New Energy has held its interest in the Caula graphite and vanadium project. Following completion of the SSPA, New Energy will have no further interest in the Caula project.

The proposed capital reduction and distribution to shareholders can only occur after the transaction closes and all condition precedents are met, including shareholder approvals.

It’s expected to take six to eight weeks to seek and obtain approvals from the Mozambique Government. The company is therefore targeting early to mid-June 2019 for the conclusion of the capital reduction and distribution.

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