GUELPH, ON - Zentek Ltd. (Nasdaq:ZTEK)(TSX-V:ZEN), a technology development company with a market capitalization of $109.5 million, has announced that its subsidiary, Albany Graphite Corporation (AGC), has achieved a graphite purity level of 99.9991% using a pilot-scale fluidized bed reactor (FBR). According to InvestingPro data, the company maintains a healthy liquidity position with a current ratio of 2.06. This level of purity, often referred to as "five nines," was obtained directly from a sample of Albany graphite deposit flotation concentrate.
The sample, weighing approximately 950 grams and with an 85% Total (EPA:TTEF) Graphitic Carbon (TGC) content, underwent a purification process without intermediate hydrometallurgical steps. The resulting ultra-high purity graphite has shown a loss on ignition (LOI) impurities concentration of 9 parts per million (ppm), which is significantly lower than the 500 ppm maximum commonly accepted for advanced battery applications.
The company aims to continue evaluating the material's suitability as an anode component for lithium-ion batteries and for potential nuclear industry applications. As part of the next steps, the FBR-purified material will undergo a full 72 element GDMS analysis at Eurofins EAG Laboratories to identify any present impurities.
The purification process will be further optimized for Albany graphite, followed by a techno-economic analysis. Zentek's efforts align with the growing demand for high-purity graphite in the North American battery supply chain, as the company explores the production of battery-ready anode material from the Albany deposit.
In previous testing, a smaller sample was thermally purified in a fixed-bed furnace and achieved a purity of 99.99884%, with a boron concentration of 1.8 ppm.
The CEO of Zentek and Albany Graphite Corporation, Greg Fenton, expressed that the direct purification to five-nines purity marks a significant advancement in the Albany project, potentially simplifying the purification process by eliminating additional steps. While the company has shown technical progress, InvestingPro analysis indicates challenges ahead, with analysts anticipating a sales decline in the current year. Get access to 10+ additional InvestingPro Tips and comprehensive financial metrics to better evaluate Zentek's growth potential.
The Albany Graphite Project is an advanced exploration stage deposit located in Ontario, Canada, and is close to essential infrastructure such as roads, rail, and power transmission lines.
This news is based on a press release statement from Zentek Ltd. and has not been independently verified.
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In a strategic shift, Zentek withdrew its application to Health Canada for its ZenGUARD™ Enhanced Air Filters, opting for more cost-effective market entry routes. The company also upsized its private placement offering to approximately $3.07 million for working capital and general corporate purposes.
Recent changes in Zentek's leadership team have seen Dr. Francis Dubé stepping down as Chief Operating Officer and Brian Bosse resigning from his director role, although both will continue their association with the company. These developments are part of the company's ongoing operations.
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