Name of the Project
Mahenge graphite project.

Location
The project is located within 324 km2 of the exploration tenements, in the Ulanga district of Tanzania.

Client
Black Rock Mining.

Project Description
The Mahenge project is the fourth-largest Joint Ore Reserves Committee-compliant contained graphite resource in the world. The project has a declared ore reserve of 48.3-million tonnes at an average grade of 8.7% total graphitic carbon (TGC).

The prefeasibility study (PFS) based on a scoping study completed in March 2016 has confirmed the technical viability of the project and its ability to deliver robust financial returns under various financial and operating scenarios. The PFS envisages mining by the owner-operator, using conventional opencut mining techniques. The strategy is to mine out the lower strip ratio Ulanzi deposit, followed by the Cascade deposit starting in Year 13. Initially the oxide ore will be developed, which can be cost-effectively mined at lower strip ratios, and then to develop the transition and fresh-ore pits.

Waste will primarily be used for tailings dam wall construction and will be stacked in waste dumps to form integrated landforms. This approach reduces haul distances, and permits smaller tailings dam establishment, allowing for land to be returned to alternative land uses progressively through the project life. This avoids large reclamation expenses at the end of mine life.

Jobs to Be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has a post-tax unlevered net present value, at a 10% discount rate, of $624-million and an unlevered internal rate of return of 48.2%, with a payback of four years.

Value
Total capital expenditure is estimated at $159-million, including Stage 2 and 15% contingency.

Duration
Construction is expected to start in 2018 with initial production in 2019.

Latest Developments
Black Rock has started pilot plant and variability testwork at SGS Lakefield Laboratories, in Canada, and intends to appoint a definitive feasibility study engineer
in due course.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Black Rock Mining, tel +61 8 9320 7550 or email info@blackrockmining.com.au.