Name of the Project
Bunyu graphite project.

Location
Tanzania.

Project Owner/s
Volt Resources.

Project Description
Bunyu has total proven and probable reserves of 2.82-million tonnes grading 6.3% total graphitic carbon. The project will be developed over two stages.

Stage 1 will focus on the development of a nominal 20 000 t/y to 25 000 t/y graphite mine and processing facility. Volt Resources’ strategy for Stage 1 is based on a plant throughput of 400 000 t/y of ore and a nominal mine life of 7.1 years.

The proposed mining method is a conventional, drill, blast, load and haul openpit, with waste material stacked in waste dumps. Mining will be undertaken by a contractor under the control and management of Volt Graphite Tanzania personnel and will likely be operated on a 12-hour 365 d/y basis as required.

A bench height of 6 m has been selected, excavated in 3 m × 2 m lifts or flitches. This is considered appropriate for the orebody and the equipment proposed by mining contractors.

Stage 2 will be an expansion of Stage 1 production based on the market demand for Bunyu’s graphite products and leverage the large-scale graphite mineral resource and Bunyu’s close proximity to critical infrastructure.

Potential Job Creation
Stage 1 has pretax net present value, at a 10% discount rate, of $18.6-million and an internal rate of return of 21%, with a payback after tax of 4.4 years.

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

Planned Start/End Date
Not stated.

Latest Developments
Volt Resources has secured $1-million in working capital funding for the development of its Bunyu graphite project.

The funding includes $300 000 raised through the placement of just over 20.8-million shares at 2.1c a share, and a $700 000 loan facility entered into with investor Lars Bader.

Bader will be issued 25.5-million options with an exercise price of $0.04 a share with an 18-month maturity.

Volt continues to simultaneously advance several funding strategies to secure the $40-million required to complete the Stage 1 development of the Bunyu project.

Current strategies being pursued include a note issue on the Dar es Salaam Stock Exchange and a similar bond issue on the Stock Exchange of Mauritius.

Volt CEO Trevor Matthews has said that this latest funding support from a sophisticated European investor not only shows confidence in the company’s ability to close the development funding but also demonstrates the long-term underlying value in 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 7788 or email info@voltresources.com.