PERTH (miningweekly.com) – Minerals explorer Syrah Resources on Wednesday told shareholders that it was focused on upgrading the inferred mineral resource at its Balama West project to the indicated and measured categories, to establish the economic viability of the project.

The project currently hosts an inferred resource of some 567.9-million tonnes, grading 9.8% graphite and 0.21% vanadium pentoxide, for 55.13-million tonnes of contained graphite and some 1.17-million tonnes of vanadium pentoxide.

The company said that it had received a scoping study for the Balama West project, but noted that since the project’s resource was currently classified as inferred, it was at an insufficient level of certainty to permit the technical and economic parameters required to imply economic viability.

“Shareholders should note that for the company to establish economic viability of the Balama West project, the company will need to upgrade an appropriate portion of its inferred mineral resource to a higher level of confidence with sufficient consideration of mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and government factors,” the company said.

Despite its inability to define economic parameters, the scoping study indicated that the Balama West project was a world-class graphite deposit with favourable technical mining and processing factors, as well as minimal waste stripping requirements, good flotation recoveries and favourable location.

The scoping study also contained the necessary information required to formally apply for a lining licence, which Syrah had now undertaken.

“The scoping study provides the foundation for Syrah to develop the Balama West graphite project and, pending favourable outcomes from the current site work, underpins the current plan to immediately start a feasibility study,” the company said.

Meanwhile, the Balama East deposit is estimated to host some 579-million tons of ore at 10.6% graphite and 0.26% vanadium. Within this resource, a high-grade Mepiche zone was estimated to host an inferred resource of 145-million tons at 15.1% graphite and 0.43% vanadium.