New economic study expected this summer for Hearst-area graphite deposit

Zentek Ltd. is preparing to release a preliminary economic assessment (PEA) for its super-pure graphite deposit near Hearst, Ontario. This assessment is anticipated to be a pivotal development for the company, according to CEO Mohammed Jiwan. Since joining Zentek last December, Jiwan has emphasized the Albany deposit as a key asset for the company's growth.

Zentek is known for its development of graphene-based products, including its patented ZenGuard air filtration technology. This technology is derived from the Albany deposit, located 70 kilometers northwest of Hearst. Despite the potential, Zentek has not yet decided to construct a mine.

Graphite is recognized globally as a critical mineral, essential for lithium-ion batteries. However, Zentek is targeting different markets than the typical graphite producers focused on electric vehicles. The Albany deposit, being igneous-hosted, offers a unique graphite type that appeals to sectors such as U.S. defense, nuclear supply, and semiconductors.

To capitalize on these opportunities, Zentek has formed a joint venture with ALO Graphite Partners, creating Strategic Graphite Partners LLC. The upcoming PEA, expected this summer, will include a new mineral resource estimate and help assess the project's economic viability.

The last PEA in 2015 suggested a 22-year mine life for an open-pit operation. Since then, the graphite market has evolved, driven by demand from electric vehicles and renewable energy sectors. Zentek plans to follow the PEA with a prefeasibility study, a step necessary for securing off-take partners and investors.

The Albany graphite deposit, discovered in 2011 by Zenyatta Ventures, contains an indicated resource of 22.9 million tonnes of graphitic carbon at 4.07% grade. The deposit's purity, often exceeding 99.9%, makes it suitable for high-tech and healthcare applications.

Zentek has also engaged with the Constance Lake First Nation, its closest Indigenous neighbor, to ensure community involvement in the project's development. Jiwan emphasizes the importance of advancing the project with community collaboration.

Since taking leadership, Jiwan has focused on consolidating Zentek's assets, including ZenGUARD™, a graphene-based antimicrobial coating. Recently, Zentek secured its first U.S. commercial order for ZenGUARD™ with Quality Filters, marking a step into the U.S. air filter market.

To support its initiatives, Zentek raised $18 million through a brokered LIFE offering in May, providing financial flexibility. The company aims to establish a direct-to-consumer channel for ZenGUARD™ Enhanced Air Filters in North America, with ongoing collaboration with the Government of Canada to secure federal orders.