Kingsland Minerals Advances Leliyn Graphite Project with Strong Drilling Results
KNG (KNG) Share Update January 2025 Wednesday 15th
Kingsland Minerals Announces Strong Infill Drilling Results at Leliyn Graphite Project
Kingsland Minerals Ltd (ASX: KNG) has announced promising infill drilling results at its Leliyn Graphite Project in the Northern Territory, paving the way for an Indicated Resource and a Scoping Study.
Instant Summary:
- 120m @ 9.2% TGC from 0m in hole LERC_53.
- Upgrade from Inferred to Indicated Mineral Resources targeted.
- Quinbrook Infrastructure Partners as a cornerstone shareholder and offtake partner.
- Bulk concentrate sample production completed, dispatch to Germany imminent.
- Potential tariffs on Chinese graphite imports into the USA.
Project Overview
Kingsland Minerals Ltd has made significant progress at its Leliyn Graphite Project, located in the Northern Territory. The company conducted a successful infill drilling program, which is expected to upgrade the existing Inferred Mineral Resources to Indicated Mineral Resources. This upgrade is crucial as it will underpin a Scoping Study on the production of flake graphite concentrate.
Drilling Results
The recent drilling program covered a 600m strike length of the graphitic schist unit, which is part of the larger 4km strike length of the Inferred Resource. The standout results include 120m at 9.2% Total Graphitic Carbon (TGC) from 0m in hole LERC_53, including 24m at 13.6% TGC from 94m. Another significant intercept was 72m at 9.2% TGC from 0m in hole LERC_56, including 20m at 13.1% TGC from 25m.
Strategic Partnership
The advancement of the Leliyn Project is bolstered by the recent investment from Quinbrook Infrastructure Partners, who have taken a cornerstone shareholding in Kingsland Minerals. This partnership also includes an offtake agreement, providing additional impetus for the development of mining studies and downstream graphite processing facilities in Darwin.
Market Context
The global graphite market is experiencing shifts, particularly with the International Tariff Council's investigation into imposing tariffs on Chinese graphite imports into the USA. This could significantly impact the supply chain for lithium-ion battery anodes, potentially benefiting projects like Leliyn that are outside of China.
The strong drilling results are expected to positively impact Kingsland Minerals' stock, as they indicate the potential for a substantial upgrade in resource classification. The involvement of Quinbrook Infrastructure Partners further strengthens the company's position, providing financial stability and a clear path to market for its graphite products. The potential imposition of tariffs on Chinese graphite could also enhance the attractiveness of non-Chinese graphite sources, potentially boosting demand for Kingsland's products.
Investor Reaction:
Analysts are likely to view the drilling results and strategic partnership positively, as they enhance the project's viability and market potential. The potential for tariffs on Chinese graphite imports adds an element of geopolitical advantage to Kingsland's operations, which could further attract investor interest.
Conclusion:
Investors should keep a close eye on the ongoing developments at the Leliyn Graphite Project, particularly the results of the Scoping Study and any further announcements regarding the strategic partnership with Quinbrook Infrastructure Partners. The potential market shifts due to geopolitical factors could also create new opportunities for Kingsland Minerals.