Name of the Project
Chilalo graphite project.
Location
The Ruangwa district of the Lindi region of south-east Tanzania.
Project Owner/s
Evolution Energy Metals.
Project Description
The robust project will be based on a probable reserve of 9.2-million tonnes.
The definitive feasibility study (DFS) has estimated total low- and high-grade indicated and inferred mineral resources of 67.3-million tonnes grading 5.4% total graphitic carbon. The project envisages throughput of 500 000 t/y to produce 50 000 t/y of high-value graphite products over an 18-year mine life.
The Chilalo openpit mine is planned as a conventional truck-and-shovel operation, using 40 t to 50 t articulated trucks and matching excavators. Operations include drill-and-blast activities for the majority of the openpit mining. Contractor mining has been assumed for the life-of-mine.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $323-million and an internal rate of return of 34%, with a payback of 3.6 years.
Capital Expenditure
Preproduction capital costs are estimated at $87.4-million.
Planned Start/End Date
The company is aiming for a final investment decision in the second quarter of 2020, which, if achieved, will result in Chilalo’s commissioning in the third quarter of 2021.
Latest Developments
Evolution Energy Minerals plans to raise A$13-million in a two tranche share placement to fund work at its Chilalo graphite project.
The company has received firm commitments for the placement of 40.62-million shares, at 32c each, from institutional, sophisticated and professional investors.
More than 24.2-million shares will be placed in the first tranche under Evolution’s existing placement capacity, with the second tranche of 16.3-million shares subject to shareholder approval.
Funds raised will go towards completing the front-end engineering design work and an updated definitive feasibility study for the project, and to conduct feasibility studies on the development of downstream processing facilities.
Funds will also go towards the extraction of 500 t of Chilalo ore to prepare a bulk sample for production marketing and qualifications, and to fund exploration for mine-life extensions.
Key Contracts, Suppliers and Consultants
GR Engineering Services (process plant, engineering design, overall cost estimation and report compilation); BatteryLimits (metallurgy and flowsheet development); SGS Lakefield (metallurgy and flowsheet development); CSA Global (geology, mineral resource, mining and ore reserve); ATC Williams (tailings storage facility); AQ2 (hydrology and hydrogeology); Mine Waste Management (acid and metalliferous drainage); Graphite Market (independent expert consultants in China and the US); Azure Capital (financial modelling); and CPC Engineering (front-end engineering design).
Contact Details for Project Information
Evolution Energy Metals, tel +61 8 9200 3426 or email info@ev1minerals.com.au.