Name and Location
Nachu graphite project, Tanzania.

Client
Magnis Reources.

Project Description
A bankable feasibility study (BFS) on the Nachu project has delivered exceptional economic returns and low technical risk.

These characteristics are driven by the high-quality size, purity and crystal structure of the contained graphite flake in the Nachu deposit.

The BFS has declared a maiden proved and probable graphite ore reserve on the Block F and FS orebodies of 76-million tonnes at 4.79% carbon in graphite for 3.6-million tonnes of contained graphite.

This ore reserve provides sufficient material to support an initial 15-year mine life.

The study envisages a five-million-tonne-a-year processing plant with a nameplate capacity of 240 000 t/y of graphite concentrate.

Net Present Value/Internal Rate of Return
The project has a post-tax net present value, at a 10% discount rate of $1.69-billion, with an internal rate of return of 98% and a 14-month payback.

Value
The project has a preproduction capital expenditure estimated at $269-million.

Duration
Not stated.

Latest Developments
Magnis Resources has signed a power development agreement with US group Symbion Power, bringing the Nachu graphite project a step closer to development.

Under the terms of the agreement, Symbion will provide a power solution for the Nachu project by developing and operating a 30 MW gas-fired power station, an associated substation and a 132 kV transmission line to connect the graphite project to the main power grid.

Magnis will undertake further detailed work and complete an environmental-impact assessment for the power project.

Once the technical, economic and environmental feasibility of the power project has been confirmed, Symbion will be responsible for funding, developing and building the infrastructure, with the Nachu project acting as offtake partner.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Magnis Resources, tel+61 2 8397 9888, fax +61 2 8397 9801 or emailinfo@magnis.com.au.