TerraNova Metals Ltd

Kambale Graphite

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The Project is located 6km west of the Upper West region capital of Wa which is 400km north, via good sealed roads, of Kumasi. From Kumasi it is approximately 240km south east by rail or road to the international port of Tema, 30km west of the capital Accra, which provides direct access to global export markets.

The Wa region has an excellent infrastructure including a commercial airport only a few kilometres from the Project, numerous well maintained sealed and unsealed roads, plenty of potable water and reliable grid power largely fed with electricity generated by the 400MWh Bui hydroelectric dam. These will all combine to represent a large saving in Project establishment capital costs.

The 149km² Kambale Graphite Project licence is held by 100% owned Ghanaian subsidiary, Kambale Graphite Limited (“KGL”). The Government of Ghana has the right to a 10% free carried interest in all licences and is entitled to a 5% Gross Royalty on production.

SEM image of micronised and spheronised Kambale graphite concentrate. Note the excellent homogenous distribution of relatively uniform particles and their well-rounded shape.

On site at the Kambale Graphite Project, meeting with our community hosts

The genesis of the flake graphite in Kambale is believed to be the result of high-grade metamorphism (amphibolite-granulite facies) which has converted trapped amorphous carbon into characteristic fine crystalline layers.

The Kambale graphite deposit was identified in the 1960s by Russian geologists prospecting for manganese. They undertook a limited programme of trenching and shallow drilling.



Encouraged by firm graphite prices in 2012, Castle undertook three consecutive phases of drilling comprising RAB (251 holes, 5,621m), aircore (89 holes, 2,808m) and reverse circulation (3 holes, 303m). This work confirmed several zones of moderately to steeply dipping, north-east trending graphitic schists hoisted mainly in granodiorites. A JORC Code 2006 MRE was also undertaken.

Castle also undertook a very limited programme of bench-scale test work on RC chips. Thereafter, little work was undertaken until the more recent improvement in graphite prices prompted a re-evaluation of the Project in early-2021.



In September 2021 Castle reported that preliminary bench-scale test work by Independent Metallurgical Operations Pty Ltd (IMO), Perth, on sub-optimal near-surface, weathered graphitic schists sourced from trenches yielded encouraging fine flake graphite concentrate grades of up to 96.4% and recoveries of up to 88%. A conventional multiple grind and flotation concentration flowsheet was used. The three composited samples provided for the test work graded 12.56%, 16.09% and 17.16% TGC.

In late 2022, a 52-hole 5,353m RC programme was undertaken to test the interpreted steep dipping, shallow conductive plates derived from the HLEM survey. The results confirmed that the majority of the plates were associated with graphite mineralisation and that the graphite continued to depths of at least 100m.

In early-March 2023 Castle reported that robust lenses of graphitic mineralisation containing high-grade zones with excellent continuity had been delineated by a 30-hole, 2,622m RC infill and 4-hole, 365.2m diamond core drilling campaign.

In April 2023 a maiden JORC Code (2012) Mineral Resource Estimate (“MRE”) of 15.6Mt at 9.0% TGC containing 1.41Mt of graphite was provided by independent consultants, Palaris (Australia) Pty Ltd.

The MRE is hosted by sub-parallel, steep to moderately dipping graphitic schist zones. These were delineated using data from the several phases of trenching and drilling which comprised 386-holes for a combined 16,018m of RAB, aircore, RC and diamond core drilling. Of this database, 85 RC and 4 diamond core holes for a total of 8,644m were used in the actual estimation.

Mineralisation commences at or close to surface and has been drill proven to at least 120m depth and most likely even deeper.



A 300kg sample of fresh, unweathered graphitic schist, sourced from the four diamond drill core holes drilled into various representative areas of the deposit, was delivered to IMO in late December 2022. Bench-scale and then pilot plant scale test work used 215kg of the original sample. A commercial specification bulk fine flake concentrate grade of 95.1% TGC was achieved with a recovery of 79% of the graphite to the concentrate.



Micronisation, spheronisation, purification and electrochemical test work

The bulk fine flake concentrate has successfully undergone micronisation, spheronisation and purification test work at ProGraphite GmbH, Germany. This produced a 99.97% LOI product with no impurities of concern. Subsequent electrochemical test work has indicated that purified (uncoated) material meets a number of key charging and stability benchmark performance markers confirming its suitability to be used in the manufacture of precursor and Battery Anode Material (BAM) across a range of secondary battery chemistries and battery formats.

Core trays from drill hole 22CKDD001 (18.6m to 21.3m and 29.3m to 36.1m) showing intercepts of graphitic schist

An increased JORC Code (2012) Mineral Resource Estimate (“MRE”) of 22.4Mt grading 8.6% TGC containing 1.94Mt of graphite was reported in October 2023. This included 43% in the higher confidence Indicated Mineral Resource category.

The MRE update included 43 RC holes drilled in August 2023. Mineralisation has been delineated over 2.3km north-south within a corridor up to 0.5km wide by several phases of trenching and a combined 424-holes for 21,569m of RAB, Aircore, RC and diamond core drilling campaigns. It has also been confirmed to at least 150m below surface where it still remains open.

In February 2024, purification of 99.97% TGC was achieved, which exceeds industry benchmark for use in EV battery anode manufacture. No impurities of concern were noted.



In March 2024, electrochemical test work confirmed Kambale natural flake graphite is suitable for use in manufacture of lithium-ion and other battery formats, with a range of key charging, stability and other performance benchmarks achieved.



KGL’s key management has some 17 years of successfully operating in Ghana and in particular its Upper West region. It has established a good reputation for its pro-active commitment to community engagement, local employment and training and aims to apply best practise ESG standards.

KGL has ensured that its activities meet the highest expectations in regard to environmental, social and governance (“ESG”) standards. Resources have been directed to ensuring that all activities are undertaken with the prior, free and fully informed consent of impacted communities.

In parallel and critical to establishing any operation at Kambale, Castle has commissioned and commenced an independent Stakeholder Engagement Programme which was scoped following an independent Stakeholder Identification and Assessment Study. These are being conducted consistent with standards, policies and guidelines of the World Bank, International Finance Corporation, International Labour Organisation and other relevant authorities.

Compensation for access and any disruptions caused is provided in close consultation with landowners, Government and other stakeholders. All site disturbances are rehabilitated immediately after use.

KGL will continue to contribute to the improvement of the well-being of its communities. It has already, at the request of the communities, installed fresh water well, pump and storage facilities and is planning to continue with other critical health improvement initiatives.

The Company’s Ghana-based team is 100% Ghanaian. A key aim is to maximise local employment and include where possible 100% of locally sourced content in all aspects of its operations.

November 2024: Ghana’s Minerals Income Investment Fund to Invest ~US$2.0M in Kambale Graphite Project – Proposed investment of ~US$500,000 (~A$750,000) in Castle at A$0.0045 per share and US$1.5 million (~A$2.25 million) in subsidiary, Kambale Graphite Limited (“KGL”)

Electric vehicle (“EV”) lithium-ion batteries contain an anode (-ve) and a cathode (+ve).

The anode comprises +95% graphite with 35kg–75kg of graphite in a typical EV battery pack which contains 10x–15x more graphite (by weight) than lithium (in the cathode).

Battery anode material (“BAM”) is made from natural fine flake graphite (-100 mesh) or from a primary synthetic graphite.

Primary synthetic graphite is made from petroleum or coal refinery residue requiring high-temperature processing and producing much high levels of CO₂ emissions.

Mined and concentrated natural graphite is micronised, spheronised, purified (“SPG”) and then coated to become BAM.

In most cases <40% of the original graphite concentrate becomes BAM.

There are forecasts for an additional 100 million light EV sales to 2030 alone and a major supply deficit of natural fine flake natural graphite is expected.

China produces ~95% of the world’s BAM with non-China anode, Li-ion battery with EV manufacturers critically dependent upon China supplies.

China has insufficient natural fine flake graphite to meet internal demand and is importing concentrates via offtake contracts with many of the world’s new or proposed graphite mines.

China wants to grow and protect its battery and EV business and in December 2023 introduced ‘temporary’ export licence controls on graphite, anodes and EV batteries.

The USA Inflation Reduction Act is a multi-billion dollar initiative to stimulate in-country manufacturing of batteries and EVs by establishing reliable, independent supply chains of quality, sustainable critical minerals, including graphite. Access to IRA funds is restricted to enterprises or product inputs not associated with “countries of concern”.

The EU is introducing a similar supply chain stimulus initiative (“Critical Raw Materials Act”) with several other countries likely to follow suit.

The Kambale Graphite Project is strategically located and well timed to participate as an uncommitted source of natural fine flake graphite in the new critical mineral supply chains being established.

Ghana is a highly regarded, safe, politically stable and fast-growing jurisdiction with a long history of mining by international Tier-1 companies. It has a highly skilled workforce, excellent infrastructure, international ports and well established contracting and supply sectors. It has ambitions to establish West Africa’s first critical minerals hub.

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