Name of the Project
Bunyu (formerly Namangale) graphite project.
Location
The project is located in south-east Tanzania.
Client
Volt Graphite Tanzania, a subsidiary of Volt Resources.
Project Description
The Bunyu project has total mineral resources of 461-million tonnes grading 4.9% total graphitic carbon (TGC).
Total proven and probable reserves are estimated at 127.4-million tonnes grading 4.36% total graphitic carbon.
The strategy for the project has been amended.
A previously completed prefeasibility study (PFS) considered a number of production scenarios, ranging from 60 000 t/y to 240 000 t/y of graphite concentrate over a 20-year mine life.
The revised strategy is to develop Namangale in two stages.
Stage 1 will now focus on the potential development of a 10 000 t/y to 20 000 t/y graphite mine and processing facility, with products expected to be exported to the US, China and other markets.
Stage 2 expansion will be based on market demand.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The PFS demonstrated a pretax net present value, at a 10% discount rate, of $1.31-billion and an internal rate of return of 86.9%, with a payback of 1.4 years from first ore to process plant.
Value
The PFS estimated capital expenditure at $173-million.
Duration
Not stated.
Latest Developments
Volt Resources has raised $4.7-million to support the fast-tracking of the Stage 1 development of the Bunyu graphite project.
The company exercised 235.6-million listed options at $0.02, with the shortfall of 24-million options jointly underwritten and taken up by Empire Capital Partners and Cove Capital under an option underwriting agreement.
“Volt is now strategically positioned to execute on a number of operational milestones as part of the Stage 1 development of Bunyu, with near-term deliverables to include the finalisation of all project approvals and completion of the Stage 1 feasibility study,” Volt CEO Trevor Matthews has said.
The Stage 1 feasibility study is expected to be completed in the first quarter of 2018.
Volt aims to develop Bunyu Stage 1 to process 400 000 t/y of ore and produce a nominal 20 000 t/y of graphite products.
In October 2017, Volt appointed Exotix Capital to undertake a Tanzanian bond issue to raise the required funding for the development of Stage 1 of the Bunyu project.
Key Contracts and Suppliers
None stated.
On Budget and on Time?
Not stated.
Contact Details for Project Information
Volt Resources, tel +61 8 9486 or email info@voltresources.com.