Aim-listed Armadale Capital expects a definitive feasibility study (DFS) for its Mahenge Liandu graphite project, in Tanzania, to be completed in the fourth quarter.
Remaining work, including product marketing, developing a transport and logistics pathway and a resource update, is under way.
A scoping study revealed a net present value of $349-million for the project, a development capital expenditure requirement of $35-million, an internal rate of return of 122% before tax and a 32-year mine life.
Meanwhile, drilling and testing are under way to expand the project resource, optimise process flow sheets and enable completion of the final plant design.
The project has a current Joint Ore Reserves Committee-compliant resource of 51.1-million tonnes at 9.3% total graphitic carbon content.
Armadale plans to submit an environmental- and social-impact assessment and relocation action plan to the National Environment Management Council before the end of April.
A testwork programme, aimed at progressing a memorandum of understanding for offtake of 30 000 t/y of graphite concentrate to a binding agreement, is under way, while the company has progressed discussions with other offtake partners for the remaining 19 000 t/y of graphite concentrate production.
Armadale expects to submit an application for a mining lease in August.