Mining Intelligence and News
Australia

Uley (Uley 2) Mine

Click for more information

Categories

Summary

Mine TypeOpen Pit
Study CompletedFeasibility
StageRestarting
Commodities
  • Graphite
Mining Method
  • Truck & Shovel / Loader
Project Timeline... Lock
SnapshotUley 2 is the next stage in the development of the century-old Uley mine, one of the world’s largest high-grade natural flake graphite deposits. The project includes the Uley 2 and Uley 3 mines, fully permitted with all environmental approvals in place.

Further deposits (Uley 3 South, 4, 5, 6) will be developed progressively, extending the project’s life through to 2070, with Uley 6 expected to follow due to its proximity to existing infrastructure.

Uley forms the centrepiece of the Eyre Peninsula Graphite Hub (EPG Hub), developed by Quantum Graphite and joint venture partner Sunlands Energy Co. The Hub integrates mining, processing, and Sunlands’ thermal energy storage technologies, creating an end-to-end supply chain for high-purity graphite (HPG).

Granted Federal Major Project Status, the Hub is positioned as a scalable, independent (ex-China) supplier to the global LFP EV battery sector, with financing advancing via US EXIM Bank and other institutions.

Owners

SourceSource
CompanyInterestOwnership
Quantum Graphite Operations Pty Ltd. (operator) 100 % Direct
Quantum Graphite Ltd. 100 % Indirect
Quantum Graphite Ltd.(QGL) is the owner of the Uley flake graphite mineral deposits. Quantum Graphite Operations Pty Ltd, the wholly owned subsidiary of the QGL and owner and operator of Uley 2.

Contractors

Lock

- subscription is required.

Deposit type

  • Metamorphic hosted

Summary:

The Uley Graphite Project target horizon is within the Hutchinson Group member the Cook Gap Schist. The Warrow Quartzite and Katunga Dolomite units have been intersected and are horizons below the target. Thrusting, faulting and folding with subsequent metamorphism have resulted in graphite mineralisation being developed in thickened locally anticlinal rootless folds.

Uley 2 sits within the greater Uley graphite resource province which is defined as a series of highly mineralised envelopes including the historical Uley 1 and Uley 2, 3, 4, 5 and 6 and consists of five contiguous tenements on the Eyre Peninsula of South Australia.

The Uley Graphite Project is hosted within a suite of graphitic schists and biotite-garnet gneisses. This has been historically interpreted as a basal sub-horizontal thrust, with folded and thrust schists and gneiss in the hanging wall of the thrust. Locally the stratigraphy has been metasomatised during high grade metamorphism and siliceous pegmatite veins invade the schists and gneiss.

The Uley Graphite Project deposits are located in slightly undulating landforms, c.a. 80 metres above sea level. The graphite mineralisation is hosted by the Cook Gap Schist, a partially migmatised medium grained biotite+/-garnet+/-muscovite+/-sillimanite-quartzofeldspathic schist/gneiss with leucocratic pegmatite sweats.

The adjusted mineralisation interpretation applied a minimum 2m down hole intercept with a maximum of 2 m internal waste.

The graphitic mineralisation is interpreted to extend along the full strike distance. Depth of interpreted mineralisation varies as structural events resulted in the plunge to the north-east of the tight isoclinal folds that host mineralisation. Mineralisation becomes shallower and closer to the surface towards the south-west of Uley 2.

Graphite is developed as a constituent mineral in coarse prograde metamorphic assemblages as well as in the fabric and foliation of micaceous schists. These are interpreted to be the folded, thrusted and metamorphosed equivalents of the Cook Gap Schist. Folding of stratigraphy on various local scales is obvious from the core logging.

The drilling relevant to the Mineral Resource estimate at Uley 2 extends over a distance of 375 m (from 9,225 m grid N to 9,600 m grid N) and includes a 125 m vertical interval from approximately 375 m to 500 m. The graphitic mineralisation is interpreted to extend along the full strike distance. Depth of interpreted mineralisation varies as structural events resulted in the plunge to the north-east of the tight isoclinal folds that host mineralisation. Mineralisation becomes shallower and closer to the surface towards the south-west of Uley 2.

The nose of the fold structure from Uley 1 Pit is believed to be missing in the Uley 2 deposit, having been eroded from near the Uley 1 Pit southern face, and that the resultant geology consists of one or both of the fold limbs extending to the south of Uley 1 Pit through the Uley 2 deposit. As a result the multiple Graphite horizons within the Cook Gap Schist are vertical to sub vertical westerly dipping units which may be structurally repeated as a result of the anticlinal fold system and its associated rootless parasitic folds.

Mineralisation at Uley 2 deposit represents strike continuity of that seen at Uley 1 Pit, along a known geophysical anomaly. Graphitic horizons are found within the Cook Gap Schist unit and parallel with intrustive Amphibolites thought to be of the Burrawing unit.

Reserves

Lock

- subscription is required.

Mining Methods

Lock

- subscription is required.

Required Heavy Mobile Equipment

Lock

- subscription is required.

Comminution

Crushers and Mills

Lock

- subscription is required.

Processing

Lock

- subscription is required.

Commodity Production

CommodityProductUnitsAvg. Annual
Graphite Concentrate kt 100

Operational metrics

Metrics
Annual processing capacity  ....  Subscribe
Stripping ratio  ....  Subscribe4.64 *
Waste tonnes, LOM  ....  Subscribe18.6 Mt *
Ore tonnes mined, LOM  ....  Subscribe4 Mt *
Total tonnes mined, LOM  ....  Subscribe22.6 Mt *
Tonnes processed, LOM  ....  Subscribe4 Mt *
* According to 2023 study.

Production Costs

CommodityUnitsAverage
Assumed price Graphite USD  ....  Subscribe
* According to 2023 study / presentation.

Operating Costs

CurrencyAverage
OP mining costs ($/t milled) AUD  ....  Subscribe
Processing costs ($/t milled) AUD  ....  Subscribe
Total operating costs ($/t milled) AUD  ....  Subscribe
* According to 2023 study.

Project Costs

MetricsUnitsLOM Total
Pre-Production capital costs $M AUD  ......  Subscribe
Gross revenue (LOM) $M AUD  ......  Subscribe
After-tax Cash Flow (LOM) $M AUD  ......  Subscribe
After-tax NPV @ 8.5% $M AUD  ......  Subscribe
After-tax IRR, %  ......  Subscribe

Aerial view:

Lock

- subscription is required.