Name and Location
Epanko graphite project, Tanzania.

Client
Graphite developer Kibaran Resources.

Project Description
The Epanko project has a total mineral resource of 22.7-million tonnes at 9.8% total graphitic carbon for 2.22-million tonnes of contained graphite.

An upgraded scoping study has indicated that Epanko is an economically robust graphite deposit capable of producing premium-quality large-flake graphite, which has no limitations to its industrial use.

The study was based on the treatment of only 50% of the current total mineral resources estimated for the Epanko deposit.

The study assessed the viability of a simple opencut mine and conventional flotation process plant, with a throughput of 420 000 t/y to produce 40 000 t/y of high-grade graphite-flake concentrate grading between 94% and 97% carbon, with no acid-treatment stage required.

The project has a substantial mine life.

Net Present Value/Internal Rate of Return
The project has a net present value of $213-million and a capital payback period of 2.5 years.

Value
The capital cost estimate for processing 420 000 t/y is $56-million.

Duration
Not stated.

Latest Developments
Kibaran has reported that its flagship Epanko project could support output of as much as 100 000 t/y.

The company has initiated a review of its mining and processing schedule at Epanko to develop a growth strategy for the project beyond its initial 40 000 t/y production, which is currently the subject of a feasibility study.

The study has confirmed that the eastern and western zones of the Epanko project could easily support a production rate of about 100 000 t/y of concentrate.

In terms of the net present value, the Epanko project could be worth as much as $251-million, should the production rate be 100 000 t/y, compared with the scoping study estimate of $213-million, based on the 40 000 t/y production profile.

Kibaran has noted that while the production could, from a technical perspective, start at a rate of 100 000 t/y, it believes that meeting the current demand by starting production at 40 000 t/y is prudent, coupled with a sound 100 000 t/y growth strategy. This places the company in prime position to respond quickly to future increases in demand.

Meanwhile, the feasibility study on the 40 000 t/y production is progressing on schedule and within budget, and remains scheduled for completion in the June quarter.

Key Contracts and Suppliers
GR Engineering Services (feasibility and project evaluation study).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Kibaran Resources, tel + 61 8 6380 1003, fax +61 8 6380 1026 or email info@kibaranresources.com.
GR Engineering Services tel +61 8 6272 6000, fax +61 8 6272 6001 or email gres@gres.com.au.