Name of the Project
Bunyu graphite project.

Location
Tanzania.

Project Owner/s
Volt Resources.

Project Description
Bunyu has total proven and probable reserves of 127.4 million tonnes grading 4.36% total graphitic carbon for contained graphite of 5.6 million tonnes. Mineral resources total 461 million tonnes at 4.9% total graphitic carbon for contained graphite of 22.6 million tonnes.

The project will be developed over two stages. The two-stage approach to project development, starting with a smaller-scale Stage 1 start-up project will allow for the establishment of local relationships, project development and logistics paths. Stage 1 will provide commercial quantities of graphite product for further marketing development, developing downstream processing options and enhance the ability to fund the subsequent Stage 2 development.  The definitive feasibility study for Stage 2 is planned to proceed concurrent with Stage 1 project development.

Stage 1 will focus on the development of a graphite mine and processing facility with annual throughput capacity of 400 000 t/y of ore to produce on average 23 700 t/y of graphite products. The project will have a nominal mine life of 7.1 years.

The Stage 1 development incorporates a significant amount of infrastructure, utilities and mine development work that benefits the Stage 2 expansion including the site access road, plant laydown area, tailings storage facility, waste dumps, stockpile areas, openpit development and mining, an accommodation village and water supply.

Stage 2 development is an expansion of Stage 1 production based on the market demand for Bunyu’s graphite products and leveraging the large-scale graphite mineral resource and Bunyu’s close proximity to critical infrastructure. The expansion is targeted to meet expected significant increases in demand for coarse flake graphite in the expandable graphite market and fine flake size products for battery anode material and other existing and evolving industrial uses for micro carbon products.  

The Bunyu graphite project prefeasibility study was completed in late 2016.  This was for a project with an estimated capex of US$173 million to process 3.8-million tonnes a yeara of ore and produce 170 000 t/y of graphite products.  Financial analysis indicated an attractive investment with a post-tax net present value of $890-million. The PFS can be used as a proxy for Stage 2.

Potential Job Creation
The Stage 1 operations workforce is estimated at 61 people, with up to 60 additional on-site contractors.

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

Planned Start /End Date
Construction period is estimated at 12 months.

Latest Developments
Volt has received the environmental approval and two mining licences covering the footprint for Stage 1 and the Stage 2 expansion project. It is working with Exotix Capital and other advisers to seek approval for and issue a prospectus to raise the development capital for the Stage 1 development of the project. In addition the Company and Exotix are in discussions with institutional investors in relation to Stage 1 funding.

The Company is also completing offtake agreements with Chinese partners for most of the Stage 1 yearly flake graphite production. The key plant construction contract and several other work packages will also be entered into in readiness for the start of construction.

Once funding is obtained, Volt will proceed with the front-end engineering and design for Stage 1 and place orders for long-lead time components.

Concurrent with the Stage 1 development, Volt plans to start work on the definitive feasibility study for the Stage 2 expansion.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Project development timing depends on the sourcing of funding for the Stage 1 Bunyu graphite project.

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