Sarytogan Reports 229Mt Resource, $5M EBRD Investment, and New Product Milestones

Strategic Milestone: Mining License Granted

Sarytogan Graphite Limited (ASX: SGA) marked a significant regulatory achievement with the granting of its mining license and environmental permit for the Sarytogan Graphite Project in Kazakhstan. This 25-year license, covering 8.88 km², replaces the previous exploration license and provides a solid foundation for advancing towards production. The permit followed extensive engagement with local communities and regulatory authorities, underscoring the company’s commitment to sustainable development.

Product Development: Demonstrating Versatility and Quality

On the product front, Sarytogan has successfully demonstrated the performance of its Micro80C graphite as a recarburizer in both grey and ductile cast-iron applications. These tests confirm the material’s suitability for traditional industrial uses, with physical properties meeting stringent Kazakh and international standards. Notably, ductile cast-iron recarburizers command a premium price, reflecting the higher performance requirements.

In parallel, the company has showcased the potential of its Ultra-High Purity Fines (UHPF) graphite for manufacturing synthetic industrial diamonds. Using high-pressure, high-temperature methods, Sarytogan produced diamonds up to 1mm in size, highlighting the advanced industrial applications of its graphite products, including precision machining and semiconductor manufacturing.

Customer Qualification and Market Readiness

To support customer qualification and machine vendor testing, a 20-tonne trial mining sample is undergoing milling in Kazakhstan, followed by flotation in Australia and purification in the USA. This process aims to generate hundreds of kilograms of product samples across multiple graphite grades, enabling Sarytogan to engage industrial customers and secure offtake agreements. The recent appointment of Antonio De Assis, an experienced graphite marketing executive, signals a strategic push to commercialize these products globally.

Financial Backing and Corporate Developments

Financially, Sarytogan has strengthened its position through a A$5 million equity investment from the European Bank for Reconstruction and Development (EBRD). The first tranche, completed in November 2024, secured nearly 10% ownership, with the second tranche on track for completion by February 2025. This investment not only provides capital for project advancement but also brings governance and environmental oversight through EBRD’s project support agreement.

Despite a modest cash burn from operating and exploration activities, the company ended the quarter with A$2.28 million in cash, supported by the forthcoming tranche 2 proceeds. Non-executive director Brendan Borg resigned during the quarter, reflecting ongoing corporate adjustments as the company scales.

Expanding Horizons: Copper Exploration at Bainazar

Beyond graphite, Sarytogan is actively exploring copper porphyry targets at its Bainazar project within Kazakhstan’s Central Asian Orogenic Belt. Recent aeromagnetic surveys and extensive soil sampling have identified multiple prospects with encouraging geochemical anomalies, including gold, silver, and copper. Historical drill data at the Ilken prospect suggests mineralization, though verification drilling is planned to confirm these findings. The company aims to build a portfolio of copper projects to complement its graphite operations.

Looking Ahead: Definitive Feasibility and Market Engagement

Early works for the Definitive Feasibility Study (DFS) are underway, encompassing power and water studies, infill drilling, variability testing, and environmental assessments aligned with international standards. These efforts aim to de-risk the project and prepare for scaled development. Sarytogan also plans to present at upcoming investor conferences, signaling confidence in its technical progress and market positioning.