The two had been examining the potential for the material from Mahenge to be premium quality, finding it to be exceptionally high purity and showing the characteristics necessary for the lithium-ion battery market.

Armadale chairman Nick Johansen said the result of testing and technical analysis carried out with CSIRO at its laboratories justify more advanced levels of test work such as micronizing and classification as well as spheronising and electrode fabrication and testing.

"Natural flake graphite for use in lithium-ion batteries has significant environmental benefits when compared to artificial graphite," Johansen said.

"[We are now in a] strong position to close out potential binding offtake discussions which have already been initiated with a number of selected parties."

Armadale engaged CSIRO at their facility in Melbourne to undertake both the physical characterisation and electrochemical testing of the natural graphite flake from the deposit.