Talga [ASX:TLG] Shares Rise on Vittangi Graphite Drilling Update
Graphite and battery materials stock Talga Group Ltd [ASX:TLG] updated the market on new drill results at its Sweden graphite project.
TLG shares rose as high as 8% in early trade before tailing off by the afternoon.
After reaching an all-time high of $2.23 in November last year, the TLG stock has retraced, down 30% year to date.
Talga’s Niska Link graphite drill results
Today, Talga announced it completed initial drilling of the 2km-long Niska Link site in northern Sweden at its 100%-owned Vittangi graphite.
Talga’s Niska drilling program consisted of 36 holes along the 2km range between Niska Northern and Southern known graphite deposits first discovered in October 2021.
TLG completed its first assay results using 13 drillholes and confirmed high-grade graphite mineralisation with maximum values reaching 46% Cg at 14.7m.
Further results from the Vittangi Graphite Resource Project will be due for release in August.
Talga’s resource growth strategy
Talga also reiterated its strategy in today’s update.
TLG plans to build a vertically integrated operation to supply graphite anode products to lithium-ion battery manufactures.
Talga cited figures suggesting Europe will require around 1 million tonnes of anode per year by 2031.
TLG revealed that 20 battery manufacturers have received Talga’s anode samples as part of offtake and financing arrangements in preparation for commercial production in 2024.
Talga said its ongoing drilling campaigns are designed to increase its graphite resource.
Commenting on the resource expansion target, Talga said:
‘The resource revision aims to further define what is Europe’s largest and highest-grade graphite mineral resource to support and optimise potential future anode production expansions.’
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