Name of the Project
Siviour graphite project.

Location
Eyre Peninsula, South Australia.

Client
Renascor Resources.

Project Description
The project has total indicated and inferred resources of 80.6-million tonnes grading 7.9% total graphitic carbon for 6.4-million tonnes of contained graphite. Multiple mine options based on a 20-year mine life have been considered, where the entire life-of-mine graphite production target would be included in the existing indicated resource of Siviour.

Based on market requirements and potential capital raising capacity, a production rate of 123 000 t/y was selected as the most viable scenario in the scoping study completed in May. For the scoping study, conventional mining using drill-and-blast, load-and-haul, and crusher feed and in-pit wet disposal have been adopted. Continuing studies have confirmed that the Siviour project is economically robust in a number of development scenarios.

The studies show that, in addition to offering impressive returns as a large-scale operation, Siviour offers a competitive pathway to production through a low start-up capital, staged development.

The first stage proposes a smaller start-up operation than assessed in the May scoping study. After the first three years, a second stage will be incorporated – the larger production scenario envisaged in the scoping study.

The proposed Stage 1 development will produce 10 800 t/y of graphite, with Stage 2 increasing production to 123 000 t/y.

In the two-stage scenario, Siviour has a 23-year mine life, compared with 20 years in the May scoping study.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The scoping study estimates an after-tax net present value (NPV), at a 10% discount rate, of A$551-million and an internal rate of return (IRR) of 59%, with a payback of 1.7 years.

The two-stage option has an after-tax NPV, at a 10% discount rate, of A$370-million and an IRR of 46%, with Stage 1 having a payback of 3.1 years and Stage 2 a payback of 1.8 years.

Value
The scoping study estimates preproduction capital costs at A$144-million.

In the staged development, Stage 1 start-up capital is estimated at A$15.9-million and Stage 2 at A$138-million.

Duration
The project development schedule is based on completing feasibility studies in the second half of 2018, and, subject to receiving funding and relevant approvals, the project could start production in 2020.

The staged development scenario envisages Stage 1 starting in 2019 and Stage 2 in 2022.

Latest Developments
As part of the prefeasibility study (PFS) under way, Renascor is further evaluating the staged development approach and the large-scale option proposed in the scoping study, with the start-up production scale to be determined after the completion of the PFS and further consideration from potential offtake and finance partners.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Renascor Resources, tel +61 8 8363 6989, fax +61 8 8363 4989 or email info@renascor.com.au.