Graphite is a soft blackish-colored mineral that forms on carbon-rich rock in the form of crystalline flake graphite, finely coarse amorphous graphite, or crystaline lump graphite. It mostly occurs on limestones, schists, and gneisses. The element is used heavily in the industrial space as a lubricant, carbon brushes for electric motors, fire retardants, and steel manufacturing.

In 2022, the global graphite market was valued at US$23.73 billion and is expected to grow to US$37.68 billion by 2028. The graphite market has historically been driven by industrial demand, but the strong increase and positive outlook for electric vehicle (EV) and battery demand have emerged as a key growth drivers. Graphite is becoming immensely popular among industries in the current scenario, due to its newfound applications, rising environmental concerns among citizens and governments, etc. The graphite market is projected to expand at a CAGR of 8.01% over the forecast period of 2023-2028.

Market Segmentation Analysis:

The Graphite Market is segmented into various categories including type, application, region, demand, supply and flake size.

The global graphite market is divided by type, into two categories: natural graphite and synthetic graphite. In 2022, synthetic graphite led the market due to factors like the growing popularity of EVs, cleaner fuels, and energy storage grids. It is extensively used in the battery anode supply chain. Natural graphite currently ranks as the second-largest global graphite source. However, due to its ESG benefits, cost advantages, and performance improvements through blending with synthetic graphite, the demand for natural graphite is expected to have the highest growth rate

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 The global natural graphite supply is further divided based on flake size: fines (-100 mesh), medium (+100 mesh), large (+80mesh), and jumbo (+50 mesh). Fines dominated the supply of the natural graphite market in the year 2022. The supply of fines is more abundant in nature due to its small particle size and is easily obtained during the graphite mining and processing processes, as they are usually found in higher quantities in graphite ore bodies. Moreover, fine graphite could also be obtained as a byproduct of processing larger flakes or from the production of other graphite products.

SRG Mining (TSX: SRG;OTCUS: SRGMF)  is a Canadian-based mining company, which engages in the exploration and development of mineral properties. With a market capitalisation of $96.75M, it is well positioned to become a Mine-to-Market AAM (ActiveAnodeMaterial) Producer. It focuses on developing the Lola Graphite Project located in the Republic of Guinea, West Africa.

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Key Highlights:

• ‍Strong track record in de-risking, engineering, financing, and construction of African mining projects.
• ‍Ongoing discussions for debt and equity financing with strategic and financial partners.
• ‍Strong support from Guinean authorities and local communities within the country.
• ‍Active Anode Material (AAM) market is experiencing growth as it is an essential input for Lithium-Ion Batteries (LIB).
• ‍Capital efficiency has been increased by doubling the proposed mine production to 94ktpa of graphite concentrate.
• ‍The project is characterized by its long life, world-class status, low operating costs, low capital intensity, and a small environmental footprint.

The Lola Graphite Project:

The Lola Graphite Project is located approximately 1,000 kilometers South-East of Conakry, the capital of the Republic of Guinea. The Lola Graphite Project was named after the nearby town of Lola, located approximately 3.5 kilometers to the east of the deposit.

The Lola Graphite Project deposit is present at surface over 8.7 kilometers strike length and is an average of 370 meters wide. The first 20 to 50 meters depth (average of 32 meters) of the deposit is weathered laterite, free-digging, graphite flakes which allows for easy grinding and optimal recovery of all flakes sizes. Over 50% of the graphite is large flake (+80mesh), and 26% is “jumbo” flake material (+50 mesh ).

The graphite mineralization continue sat depth within the non-weathered sheared gneiss. In 2017 SRG completed a drilling program of 7,057m and drilling continued through into 2018. As of March 21st, 2018, 346 diamond drill holes for a total of Between 2013 and 2018 a total of 22,590 m of core had been drilled in 648 holes and 16,059 samples are the basis for the resources estimations.

The Lola Graphite occurrence was initially found by BUMIFOM in 1951 during the construction of the Conakry-Lola road. However, after Guinea's declaration of independence in 1958, the project was abandoned. It was later "re-discovered" by SRG Mining in 2012.

Following are the significant exploration results :

RESOURCE STATEMENT (CUT-OFF Cg 1.0%OXIDES,1.4% FR)

Size Distribution and Grade:

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Reserve Estimate:

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Conclusion:

The rising demand for lithium-ion batteries in electric vehicles is a crucial factor impacting the graphite market. With climate change being a global concern, governments and organizations worldwide are seeking alternative fuel resources to achieve net-zero carbon emissions. Graphite, as a mineral, plays a significant role in this endeavor. It is utilized as an anode material in batteries, contributing to the reduction of carbon emissions. Approximately 95% of the anode weight consists of graphite, with the remaining portion being silicon or other materials. Additionally, the market has experienced growth in recent years due to factors like the expanding steel industry, aerospace industry, demand for carbon fibers, and the rise of emerging economies.

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Disclaimer: Please be aware that this is not financial advice and that you should conduct due diligence before investing. The article was issued on behalf of SRG Mining Inc by Machai Capital(thegoldstocks.com).