Name and Location
Nicanda Hill graphite project, Mozambique.

Client
Thor Mining.

Project Description
An independent scoping study has indicated that Triton’s Nicanda Hill resource is a low technical risk, economically robust and commercially viable graphite project.

The project has a mineral resource estimate comprising 1.457-billion tonnes at an average grade of 10.7% total graphitic carbon (TGC) and 0.27% vanadium pentoxide classified as either inferred mineral resources or indicated mineral resources. Using a 15% TGC cutoff in the Nicanda Hill deposit, 28.1-million tonnes of graphitic material at an average grade of 15.8% TGC is contained in the Mutola, Grande and Macico (MGM) high-grade graphite zones.

The mining schedule comprises a relatively shallow openpit operation, focused initially on the MGM graphite zones in the vicinity of Nicanda Hill. The openpit will eventually be accessed through three separate ramps.

Triton believes that the shallow nature of the openpit operation, combined with a dilution grade averaging 8% TGC, represents an exceptionally low technical risk.

The scoping study proposes a straightforward crushing, milling and flotation process, together with screening and drying circuits. The results are based on a 30-year conceptual life-of-mine – 29 years of mining and one year of construction – as well as a processing operation of 1.8-million tonnes a year, resulting in an average production rate of 210 000 t/y of graphite concentrate.

Net Present Value/Internal Rate of Return
The project has a pretax net present value of $1.23-million at a discounted rate of 10% and a pretax internal rate of return of 137%, with a payback period of less than 12 months from the commissioning of the mine.

Value
The scoping study estimates capital costs of $110-million, including a $10-million contingency.

Duration
Construction is expected to start in the first quarter of 2016, with commissioning expected in the first quarter of 2017 and production in the second quarter.

Latest Developments
Triton has started the definitive feasibility study (DFS) drilling programme and planning for the proposed mine site for predevelopment early-works programmes at Nicanda Hill.

The drilling programme will provide Triton with geotechnical, metallurgical and hydrological information, which represent crucial inputs to the DFS, which is under way and on schedule for completion by the end of the fourth quarter in 2015.

The results of the additional drill programme will be combined with all previous drilling information to provide an update of the global graphite resource and the likely graphite resource that will be targeted for mining in the first ten years of graphite production.

Another key objective of the additional drill programme is to provide sufficient information to underpin an upgrade in resource classification of material significance and thus, hopefully, form the basis of developing a substantial quantity of proven graphite reserves, which will provide a more accurate basis for the DFS.

Implementation of this accelerated development strategy is consistent with Triton’s plans to start production at Nicanda Hill, subject to receiving government approvals and permits, towards the end of 2016.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Thor Mining, tel +61 8 7324 1935, fax +61 8 8351 5169 or email corporate@thormining.com.