Graphex Mining Updates PFS for Chilalo Project

Graphex Mining Updates PFS for Chilalo Project

The company’s next steps for Chilalo are to further increase ore reserves and to take necessary procedures to successfully complete a bankable feasibility study.

Graphex Mining (ASX:GPX) has released an updated prefeasibility study (PFS) for its Chilalo graphite project in Southeast Tanzania.

The company is approaching Chilalo with a two-stage production scenario, which would see stage 1 produce about 58,000 tonnes of graphite product each year during the first two years of operation.

Stage 2 would be an expansion beginning in the third year, and would see the asset produce around 104,000 tonnes of graphite product each year for 4.3 years.

Stage 1 is expected to cost US$43.6 million in pre-production capital expenditure, while stage 2 is docketed at US$32.5 million. The latter is anticipated to be funded from free cashflow.

Also part of the updated PFS is a proposal for a high-grade open-pit operation and a plant for comminution and flotation processing. The graphite product would be transported to and shipped from Mtwara Port, approximately 220 kilometers from Chilalo.

The study features two avenues for the company, an ore reserve case based solely on current ore reserves, and an increased life-of-mine (LOM) case that includes inferred resources. While the ore reserve case presents a mine life of 6.3 years, the LOM case could see that boosted to 8.5 years.

Similarly, the ore reserve case’s average annual production is estimated at 91,000 tonnes per annum (tpa) with a plant feed rate of 831,000 tpa, while the LOM case is closer to 93,000 tpa with a plant feed rate of 883,000 tpa.

The ore reserve case posits a post-tax net present value (NPV) of US$237 million at a 10-percent discount, along with a post-tax internal rate of return (IRR) of 130 percent with a post-tax payback period of less than a year.

Graphex Managing Director Phil Hoskins described the updated PFS as “an important milestone” for the company in a statement.

“Following substantial improvements to Chilalo’s product specifications and the continued strength in coarse flake graphite pricing, the economic outcomes of this study are compelling,” he said.

“Completion of the updated PFS represents an important milestone towards an investment decision by potential financiers, who have identified Chilalo as an outstanding project in the graphite sector,” Hoskins continued. “Our efforts remain firmly focused on meeting the due diligence requirements of the financier and continuing to work with the Tanzanian Government to address key legislative and regulatory issues.”

The company’s next steps for Chilalo are to further increase ore reserves and to take necessary procedures to successfully complete a bankable feasibility study (BFS). Graphex is also currently in the process of diamond drilling to further upgrade the project’s inferred resource, the results of which are expected to underpin the BFS.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.

Petratherm Limited Announces Filing of Early Warning Report Related to the Disposition of Common Shares of Outback Goldfields Corp.

Petratherm Limited (ASX: PTR) (“Petratherm”) announces that it has filed an early warning report (the “Report”) announcing that it has disposed of 33,333,333 common shares (the “Disposed Shares”) of Outback Goldfields Corp. (CSE:OZ) (formerly, Skarb Exploration Corp.) (“Outback Goldfields“). Petratherm acquired the Disposed Shares as consideration for the sale of its gold projects located in Victoria, Australia. Unless permitted under securities legislation, Petratherm must not trade the common shares before April 16, 2021. Following the expiry of this restriction period, Petratherm distributed all of the Disposed Shares in specie to its shareholders effective today. Following the disposition of the Disposed Shares, Petratherm holds nil shares of Outback Goldfields.

This press release is being issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bids and Insider Reporting Issues in connection with the filing of the Report by Petratherm.

Keep reading... Show less

AU$4 Billion Galaxy/Orocobre Merger to Create Top 5 Lithium Company

Australia’s Orocobre (TSX:ORL,ASX:ORE) and Galaxy Resources (ASX:GXY,OTC Pink:GALXF) agreed this week to join forces in a AU$4 billion “merger of equals.” The deal comes as demand for lithium for electric vehicle (EV) batteries continues to pick up pace.

Once the merger is complete, the new company will become a top five lithium chemicals company globally — and top three outside of China — with production capacity of around 40,000 tonnes of lithium carbonate equivalent per year.

“The merged entity’s growth opportunities in both brine and hard rock position it uniquely to take advantage of expected rising EV demand for lithium,” Galaxy Chairman Martin Rowley said.

Keep reading... Show less

IIROC Trading Halt – TMRR

The following issues have been halted by IIROC:

Company: Tempus Resources Ltd.

Keep reading... Show less

Cleantech Investing in Australia

Climate change is a looming issue for Australians, with 82 percent concerned about bushfires and 81 percent worried that drought or flooding will affect crop production and food supply.

This is where conscious investors look to the cleantech sector, which covers everything from renewable energy to low-emission technologies to water technology to battery storage and more.

What should investors know about cleantech in Australia before they jump in? Read on for a look at key factors, including market size, the industries encompassed by cleantech and big players to watch.

Keep reading... Show less

Galaxy Resources Limited Announcement

Galaxy Resources Limited (ASX: GXY) ( Company ) advises that the following announcement has been made to the Australian Securities Exchange which appears on the Company’s platform (ASX):

  • Becoming a substantial holder

The announcement can be viewed at:
https://www2.asx.com.au/markets/trade-our-cash-market/announcements.gxy

Keep reading... Show less

Top News

Related News