The BlackEarth Minerals NL (ASX: BEM) share price is on the move today. This comes after the company announced progress in the definitive feasibility study (DFS) on its Maniry graphite project, located in Madagascar.
During early afternoon trade the graphite developer's shares are up 6.6% to 16 cents. The BlackEarth share price reached as high as 17 cents after the news broke.
What did BlackEarth announce today?
The BlackEarth share price is racing higher as investors appear upbeat about the company's prospects.
According to its release, BlackEarth advised it has commenced the second stage of a large pilot metallurgical test work program. Expected to run over the course of 3 months, the results of the program will be used in the DFS to finalise all processing engineering matters.
Under the test program, BlackEarth will use between 60 to 70 tonnes of Maniry graphite material. Once completed, the outcome will be applied to improve the Maniry flow sheet and provide final equipment specifications. In addition, the results are anticipated to deliver significant input into the project's final environmental and social impact assessment (ESIA).
BlackEarth also noted that substantial graphite concentrate will be produced, which will support in closing off-take and downstream arrangements.
The pilot test work program is predicted to be completed some time in the second quarter of 2021.
Comments from the managing director
BlackEarth Minerals managing director Tom Revy touched on the company's update, saying:
Over the past 12 months, BlackEarth has continued to progress the DFS and the Board is pleased with what has been accomplished to date. As part of this, the value of Stage 2 piloting cannot be under-estimated given the importance of the results to the Maniry development program and ultimately the potential value it can realise for shareholders.
About the BlackEarth share price
In the past 12 months, the BlackEarth share price has been a stellar performer, achieving gains of over 320%. The company's shares traded for just 2.1 cents in March last year during the COVID-19 rout. Since then, strong investor sentiment within the industry coupled with company developments have led its wild share price rise.
Earlier this month, its shares reached a 52-week high of 28 cents on the back of signing an important marketing agreement.
