Major Advances in Production of Active Anode Material

-          NGX has successfully produced Spheronised Purified Graphite (SPG) for Active Anode Material (AAM) samples for initial end-user qualification for use in Lithium-Ion batteries

-          Commercial-scale shaping testwork achieved outstanding preliminary results: Sizing (D50) of 16.7µm, Tap Density of 0.985, and a BET specific surface area of 7.3m2/g at a yield of 43%

-          Purification performed in a large-scale pilot plant achieved 99.98% TGC, significantly above the industry minimum of 99.95% TGC with a very favourable impurity profile, a product of the inherent advantages of mining strongly weathered, saprolite ore

-          Bulk-scale optimisation test work is on-going, to commercially demonstrate Malingunde’s downstream process and define engineering parameters for developing a vertically integrated AAM operation

-          The  purified and shaped material will now be coated to produce AAM samples for distribution to end users for pre-qualification

-          The Malingunde Project has the substantial advantage of an inventory of four tonnes of graphite concentrates from previous extensive upstream study work, ideal for the AAM program.  

Figure 1: Microscope image of NGX’s Spherised Purified Graphite

April 29, 2024 - NGX Limited (NGX or the Company) is pleased to announce major advancements in the production of Active Anode Material (AAM) as part of the Company’s lithium ion battery pre-qualification program. The program is designed for the pre-qualification of AAM produced from natural graphite concentrates from the Malingunde Natural Graphite Project (Project), the Company’s pre-development project in Malawi, southern Africa.

The pre-qualification program focuses on developing and assessing AAM production technologies across the three principal processes for producing Coated Purified Spheronised Graphite (CPSG): shaping, purification, and coating.

Figure 2: Flowsheet of the major steps in the AAM production process

NGX’s Executive Director, Matt Syme, commented:

“The objective of NGX is to maximise the value of Malingunde and our other graphite projects in Malawi, by capitalising on the considerable purity, environmental and cost benefits of saprolite (clay) based ore to produce Active Anode Material for lithium ion batteries.

“As demonstrated in the Malingunde Project Pre-feasibility Study, mining of saprolite ore  has significant environmental and economic advantages due to its high quality, large flake graphite being hosted in weathered, soft, free-dig material. The weathering process also substantially reduces the sulphur content of Malingunde ore, one of the main critical AAM contaminants. The current AAM pre-qualification program aims to build on these natural advantages by developing a process which optimises these benefits, and the initial commercial scale testwork results strongly validate this approach.

NGX is fortunate to already have the required volume of concentrates on hand, providing the opportunity to undertake this commercial scale program quickly and cost effectively.  The end point for the current AAM program is to validate and quantify the  natural advantages of Malingunde concentrates and to produce AAM samples for distribution to end users for pre-qualification for lithium ion batteries.”

For further information, please contact:

Matt Syme

Executive Director

Tel: +61 8 9322 6322

OVERVIEW

The production of AAM samples at a bulk scale for distribution to major end-users for use in the rapidly expanding lithium-ion sector is the first significant step in qualifying Malingunde’s graphite concentrate as an anode material.

As part of an AAM pre-qualification program, NGX has identified and is collaborating with technology partners to fast-track development and meet projected global demand for active anode materials. The Company plans to reduce technical risk and enhance go-to-market efficiencies by focusing on bulk-scale processes within commercial production settings to evaluate commercial vendors.

NGX can fast-track AAM production cost-effectively due to the availability of over four tonnes of high-quality Malingunde graphite concentrate already produced by the project’s previous owners, Sovereign Metals Limited (Sovereign) (ASX:SVM. AIM:SVML). In addition, Sovereign's previous AAM work provided a baseline understanding and assisted in the scoping and design parameters for the program.

The program is focused on leveraging Malingunde’s known superior graphite concentrate characteristics, which result from its inherent advantage of being hosted in soft, free-dig material. This results in significant cost savings and environmental benefits.

TESTWORK OUTCOMES

SHAPING

Over 300 kg of Malingunde concentrate was provided to a global supplier of shaping equipment to test the concentrate commercially. The shaping was performed in 30kg batches under various operating conditions as part of a first-pass optimisation process. 

NGX met industry benchmarks for spherical graphite from these initial batches, achieving a D50 of 16.7 microns, a 0.985 tap density and a BET-specific surface area of 7.3m2/g at a 43% yield. Further improvements are expected from ongoing optimisation work.

PURIFICATION

NGX engaged a leading global company with a patented technology to purify graphite. NGX targeted the proprietary purification technology as it significantly reduces chemical and water consumption compared to conventional commercial processes dominated and controlled by China.

The Malingunde graphite concentrate achieved 99.98% to 99.99% purity, significantly above the industry minimum of 99.95% for use in Lithium-Ion batteries. Moreover, critical impurity levels were substantially lower than the industry standards mandated for natural flake anode materials employed in Lithium-Ion Battery manufacturing, as illustrated in Table 1.

Table 1: Benchmark specifications for minimum impurities for Natural Graphite Anode material

Assays: ICP Source: Chinese Standard (Spherical Graphite GB/T 38887-2010)

Figure 3: Purity of Feed and Product Sample by Loss-on Ignition

COATING

The spheronised purified material will now be coated and produced into AAM for electrochemical testing to evaluate initial efficiency and AAM capacity for lithium-ion storage. This will be followed by distribution to major end-users.

NEXT STEPS

The program's key objectives are to produce AAM samples for pre-qualification and facilitate discussions with end-users, including OEMs and major battery makers. It will also assist the Company in identifying and collaborating with technology partners to fast-track development and define future downstream strategy.

At the successful completion of the program, NGX expects to be well positioned to fast-track downstream feasibility studies targeting tonne-scale production of AAM, which will drive offtake, sale arrangements, and the potential for strategic participation.

MALINGUNDE GRAPHITE PROJECT

NGX took ownership of Malingunde via a demerger agreement with Sovereign Metals Limited (Sovereign) in 2023 and in January 2024 formally became the registered holder of the Project upon the issue of a new Retention Licence (RL).

Malingunde is a premium quality, low-cost flake graphite project with substantial environmental advantages due to its high-grade mineralisation hosted in soft, free-dig saprolite.

This recent purification test work and impurity analysis validated the anticipated low impurity profile of the Malingunde concentrate due to the mineralisation hosted in weathered saprolite. This differentiates it from hard-rock peers, which commonly have more difficult-to-remove impurity minerals such as pyrite and pyrrhotite.

Figure 4: Graphite processing flowchart outlining the advantages of Malingunde’s soft, free-dig material

Under Sovereign’s management, it ran a Pilot Plant program at SGS Lakefield, Canada, producing approximately four tonnes of Malingunde graphite concentrate.[1] Sovereign conducted limited bulk-scale programs in the Pilot Plant, resulting in the approximate four tonnes of representative concentrate being transferred to NGX. The availability of this large inventory of concentrates allows NGX to initiate programs like this cost-effectively and efficiently.

Figure 5: Images of the Pilot Plant at SGS Lakefield (source: Sovereign)

As summarised in the Pre-feasibility Study (PFS) previously completed by Sovereign in 2018 and updated in NGX’s replacement prospectus dated 12 April 2023 (prospectus) (as part of the NGX listing process). The Project’s advantages are principally due to the Malingunde deposit having a large weathered saprolite component, resulting in lower expected energy inputs for mining and processing.

Table 2: Malingunde Natural Graphite Project PFS - Key Project Metrics

For full details of the Pre-Feasibility Study see the NGX Prospectus dated 12 April 2023. LoM = Life of Mine.

Competent Persons’ Statements

The information in this report that relates to Metallurgical Testwork Results (Malingunde Flotation Concentrate) is based on information compiled by Mr Oliver Peters, M.Sc., P.Eng., MBA, who is a Member of the Professional Engineers of Ontario (PEO), a ‘Recognised Professional Organisation’ (RPO) included in a list promulgated by the ASX from time to time. Mr Peters is a consultant of SGS Canada Inc. (“SGS”). SGS is engaged as a consultant by NGX Limited. Mr Peters has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Peters consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Metallurgical Downstream Studies is based on information compiled by Dr Surinder Ghag, PhD., B. Eng, MBA, M.Sc., who is a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM). Dr Ghag is engaged as a consultant by NGX Limited. Dr Ghag has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr Ghag consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to Production Targets, Ore Reserves, Processing, Infrastructure and Capital and Operating Costs is extracted from the Company’s Prospectus lodged with ASIC on 12 April 2023 and on the ASX announcement platform on 16 June 2023. This Prospectus is available to view on www.ngxlimited.com. NGX confirms that: a) it is not aware of any new information or data that materially affects the information included in the original announcement; b) all material assumptions and technical parameters underpinning the Production Target, and related forecast financial information derived from the Production Target included in the original announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons’ findings are presented in this announcement have not been materially modified from the Prospectus.

Forward Looking Statement

This release may include forward-looking statements, which may be identified by words such as "expects", "anticipates", "believes", "projects", "plans", and similar expressions. These forward-looking statements are based on NGX’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of NGX, which could cause actual results to differ materially from such statements. There can be no assurance that forward-looking statements will prove to be correct. NGX makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.

Disclaimer

In relation to the disclosure of visual information and descriptions, the Company cautions that images displayed are for general illustrative purposes only, and that the visuals displayed, visual methods and estimation of mineral abundance should not be a proxy for laboratory analysis, and that laboratory analysis would be required to determine grades. Visual information also potentially provides no information regarding impurities or deterious physical properties relevant to valuations.

This announcement has been authorised for release by the Company’s Executive Director, Matt Syme.

[1] Refer to Sovereign’s ASX Announcement titled ‘Graphite Marketing Ramps up on Completion of Pilot Plant’ dated 20 September 2019.