Mineral exploration company Renascor Resources has released results of a definitive feasibility study on the Siviour graphite mine.
The results come as the state government has given notice of its intention to grant an exploration licence for the site.
The two year lease covers 690 square kilometres in the Verran and Arno Bay area.
Managing director David Christensen said the definitive feasibility study confirmed the project as a low cost project that could achieve "attractive profit margins."
"We believe this cost advantage, coupled with our location in the low sovereign risk jurisdiction of South Australia, will enable Siviour to become a premier provider of graphite for the growing lithium-ion battery market," he said.
"With the DFS now complete, we look forward to advancing towards securing binding offtake agreements and working with our finance partners to secure funding for Siviour's stage-one development."