Name and Location
Chilalo graphite project, Tanzania.

Client
Graphex Mining, a wholly owned subsidiary of IMX Resources.

Project Description
A high-level study on Chilalo has concluded that it has the criteria for a successful graphite operation.

The study has indicated that the project has high-grade mineral resources at the Shimba deposit.

The project also has excellent metallurgical characteristics, with initial testwork results showing a significant proportion of high-value large and jumbo flake material, as well as the capacity to produce a high-quality concentrate from basic flotation.

Net Present Value/Internal Rate of Return
Still to be determined.

Value
Still to be determined.

Duration
Still to be determined.

Latest Developments
Graphex Mining will start with detailed negotiations this month regarding offtake and development finance for its Chilalo graphite project, following a successful five-day site visit by China Gold Group Investment and CN Docking Joint Investment and Development, a subsidiary of China National Building Material Group Corporation (CNBM), in June.

The site visit delegation also included representatives from Suzhou Design & Research Institute of Non-Metallic Minerals Industry, an independent testing authority engaged by China Gold and CNBM to conduct confirmatory due diligence on the project.  

Graphex has advised that while a formal agreement cannot be reached until completion of confirmatory due diligence by these parties, detailed negotiations on such terms are expected to continue within the next month.

Arrangements are being made to deliver a 500 kg representative sample of Chilalo ore to Suzhou for confirmatory metallurgical testwork to verify previous testwork conducted by China Gold and CN Docking.

Meetings have also been held with various Tanzanian government departments and officials, logistics providers and the Mtwara Port Authority.

Graphex MD Phil Hoskins has noted that the Chinese delegation is particularly encouraged by the overall support for the Chilalo project and the significant progress made by Graphex in positioning itself to readily advance the development of the project.

Meanwhile, the National Environment Management Council of Tanzania issued the Chilalo graphite project with an environmental certificate, a prerequisite for granting a mining lease, in March this year.

The environmental approval was a fundamental milestone in the development of the project, and cleared the way for a mining licence application.

The mining licence was expected be granted by the second quarter of 2016.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
IMX Resources, tel +61 8 9388 7877, fax +61 8 9382 2399 or email info@imxresources.com.au.