Talga (ASX:TLG) share price edges lower on Vittangi graphite project update

Talga is progressing with its plans at the Vittangi graphite project.

| More on:
bars showing share price dip

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Talga Group Ltd (ASX: TLG) share price is dipping during late afternoon trade. This comes despite the technology minerals company announcing it has commenced trial mining at its wholly-owned Vittangi graphite project.

Throughout the day, Talga shares have been hovering in negative territory. Currently, its shares are down 3.21% to $1.51.

Trial mining campaign commences

In its release, Talga advised it has begun trial mining to extract natural graphite from Vittangi's Niska South deposit. The sample size is estimated to be about 2,500 tonnes of 'critical element' as deemed by the European Union.

The raw ore will be processed and refined into the company's flagship Li-ion battery anode product Talnode-C. This will be then used for large scale qualification trials in electric vehicle batteries.

Talga's site works included the installation of environmental monitoring systems, such as dust sampling and water treatment equipment, as well as fencing. In addition, roadworks and overburden clearing have been conducted at the site, revealing visible high-grade graphite near surface.

The target graphite mineralisation appeared at a much shallower depth than expected at 0.5 meters to 3 metres below. Originally, the company estimated the graphite ore to be at a depth of 4 metres to 5 metres.

Talga managing director, Mark Thompson, commented

We are excited to start this trial graphite mine at Niska South to supply critical natural graphite for our downstream refining into greener Li-ion battery anodes for electric vehicles. Additionally, seeing such shallow and high-grade mineralisation extending from our drilling and deposits up to 3km away demonstrates the consistency of this world-class graphite supply for more sustainable battery manufacturing within Europe.

Talga share price summary

Over the course of 2021, Talga shares have taken investors on a rollercoaster ride, down roughly 7% for the period. However, when looking at the past 12 months, its shares have posted a 55% gain, buoyed by a sharp rise last November.

Based on today's price, Talga commands a market capitalisation of around $457.88 million and has approximately 303.23 million shares outstanding.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.
Resources Shares

Down 14% in 2024, why is the BHP share price sliding again today?

ASX 200 investors are bidding down the BHP share price on Wednesday.

Read more »

A mining employee in a white hard hat cheers with fists pumped as the Hot Chili share price rises higher today
Resources Shares

These ASX 200 mining stocks could rise 40% to 50%

Analysts think these miners are dirt cheap at current levels.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Fortescue share price leaps 5% as electric machinery makes a milestone

Fortescue is charging ahead with its electric mining ambitions.

Read more »

rising mining asx share price represented by happy woman miner in hard hat
Resources Shares

Why the BHP share price crushed the benchmark this week

BHP shareholders enjoyed a rewarding week.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Dividend Investing

Here is the profit forecast to 2026 for BHP shares

Let’s unearth how much profit this miner could make.

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

Is the worst of the selling now over for ASX iron ore shares?

ASX iron ore giants like BHP, Rio Tinto and Fortescue rebounded this week after falling hard in 2024.

Read more »

Three satisfied miners with their arms crossed looking at the camera proudly
Resources Shares

Why are ASX 200 mining shares smashing the benchmark on Wednesday?

Rio Tinto, BHP and Fortescue shares are all charging higher today.

Read more »

Two miners standing together.
Resources Shares

Why is the South32 share price getting battered today?

ASX 200 investors are bidding down South32 shares today.

Read more »