Australian Graphite Limited, a fully owned subsidiary of Lincoln Minerals, has lodged an application for two mineral claims of around 300 hectares as part of its Kookaburra Gully graphite project on South Australia's Eyre Peninsula.
The company estimates that the high-quality graphite can be mined from a small open-pit mine with a low capital cost processing plant on site, with an estimated 250,000 tonnes of ore per year for at least seven years.
Managing Director Dr John Parker said the application will lead to maiden graphite production from Kookaburra Gully in 2015.
"The Mineral Resources at Kookaburra Gully reinforce Lincoln's confidence in being able to quickly progress the Company's graphite resources on southern Eyre Peninsula into a high-quality, long-life graphite mining and processing operation," Dr Parker said.
Graphite has seen a resurgence in price in recent times due to increased demand from applications such as lithium-ion battery technology for electric cars and the novel substance graphene.
"This is a commodity breakthrough starting to have tsunami-like demand dynamics. Witness the shock wave from February's announcement of Tesla's giga-factory plan to build Li-ion batteries in California," Dr Parker said.