Name of the Project
Bunyu graphite project.

Location
Tanzania.

Project Owner/s
Volt Resources.

Project Description
Bunyu has total proven and probable reserves of 2.82-million tonnes grading 6.3% total graphitic carbon. The project will be developed over two stages.

Stage 1 significantly derisks the Stage 2 expansion through a lower-risk, small-scale development.

Stage 1 is premised on a mining and processing plant throughput rate of 400 000 t/y of ore, based on a 6.26% total graphitic carbon feed grade to produce, on average, 23 700 t/y of graphite products over 7.1 years.

Stage 2 will produce about 170 000 t/y over an envisaged 22-year mine life, based on the prefeasibility study that was completed in late 2016 and is used as a proxy for Stage 2.

The DFS for Stage 2 is planned to proceed concurrently with Stage 1 project development.

Potential Job Creation
Stage 1 has a pretax net present value, at a 10% discount rate, of $18.6-million and an internal rate of return of 21%, with a payback after tax of 4.4 years.

Net Present Value/Internal Rate of Return
The Stage 1 feasibility study completed in July 2018 delivers a pretax net present value (NPV), at a 10% discount rate, of $18.6-million and an internal rate of return of 21%, with a payback of 4.4 years.

The Stage 2 prefeasibility study estimates a pretax NPV of $1.31-billion and an IRR of 86.9%, with payback of 1.4 years, based on a 22-year life-of-mine.

Capital Expenditure
Stage 1 has a capital cost of about $31.8-million.

Total initial capital expenditure for the processing plant and all other required infrastructure requirement, such as road upgrades and port warehousing, is estimated at $173-million.

Planned Start/End Date
Not stated.

Latest Developments
The results from an updated feasibility study for the Stage 1 development are expected in early August.

Volt announced the updated study in August 2022, initially saying that the results would be delivered in the December quarter of 2022.

The updated feasibility study is aimed at reducing the engineering, procurement and construction management costs, as well as the power plant costs, while increasing project life and updating the graphite pricing.

Volt has told shareholders that despite the recent increases in capital and operating costs worldwide, it expects capital costs for Bunyu to remain well below estimates for companies in Volt’s peer group, and for Bunyu’s project economics to remain strong.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Volt Resources, tel +61 8 9486 7788 or email info@voltresources.com.