Name of the Project
Siviour graphite project.

Location
The project is located on South Australia’s Eyre Peninsula.

Client
Renascor Resources.

Project Description
The Siviour project has proven and probable reserves of 45.2-million tonnes grading 7.9% total graphitic carbon (TGC). Total mineral resources have been estimated at 80.6-million tonnes grading 7.9% TGC.

The prefeasibility study (PFS) envisages the development of one graphite deposit to produce up to 156 000 t/y of graphite concentrates over a 30-year mine life.

The Siviour PFS has investigated multiple approaches to developing the deposit, from which two have been selected as the most viable:

The immediate large-scale production scenario envisages a 1.65-million-tonne-a-year processing plant to produce 142 000 t/y of graphite concentrates for the first ten years and an average of 117 000 t/y over a 30-year mine life.

The staged-production scenario considers a reduced start-up capital, staged-production approach, with production from a 200 000 t/y plant to produce an estimated 22 800 t/y of graphite concentrates in the first three years. In a second stage, starting in Year 4, the larger-scale 1.65-million-tonne-a-year plant will start operations. In this scenario, Siviour would produce an average of 156 000 t/y for the first ten years of Stage 2 and an average of 129 000 t/y over the entire Stage 2 period (years 4 to 30).

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value (NPV), at a 10% discount rate, of A$666-million and an internal rate of return (IRR) of 62% in the immediate large-scale development, with a payback of 1.8 years.

In the two-stage development, an after-tax NPV, at a 10% discount rate, of A$542-million and an IRR of 47% are estimated, with a pay-back of 3.1 years for Stage 1 and 1.5 years for  Stage 2.

Value
The immediate large-scale development will cost an estimated A$132-million to implement.

The two-stage development will cost a cumulative A$160-million to implement, with Stage 1 estimated at A$39-million and Stage 2 at A$121-million.

Duration
Not stated.

Latest Developments
Renascor intends to continue the accelerated development of Siviour, with planned upcoming work programmes expected to include:

∞ the start of a definitive feasibility study for the Siviour graphite deposit, with completion expected later in 2018, and advanced feasibility studies pertaining to the viability of producing spherical graphite from Siviour graphite concentrates;

∞ advanced offtake discussions with potential end-users of Siviour graphite products, including a planned trip to Asia with Renascor’s Asia marketing adviser, Mastermines;

∞ the completion of the Siviour mining lease application; and

∞ advanced discussions regarding potential financing arrangements.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Renascor Resources, tel +61 8 8363 6989, fax +61 8 8363 4989 or email info@renascor.com.au.