Spotlight on BKT - Largest high-grade graphite in Tanzania, page-21

If we talking about Tanzania then here are 3 comparisons :

BKT - Leads the race @ $ US $458/t and our grades are superior at average of over 10% verses VRC at 5.1% so if you take gold as a commodity the higher the grade and concentration and relative depth, the lower cost to extract therefore % TGC grades in the graphite business are also significant and in our favour , then we have low strip ratios to add into our valuation methodology so pound for pound we better in many ways

IMPORTANT (BKT IS ABOVE 99.1% PURITY and also without chemicals ACROSS ALL SIZE FRACTIONS )
>99% TGC purities achieved from simple flotation.

What is different about our graphite?

•  Mineralisation quality – purer precursor flake. Extensive regional metamorphism has generated high purity coarse graphite flakes with relatively few fines. These high purity flakes are the key to being able to process high purity concentrates
•  Excellent purities up to 99.1% TGC from simple flotation alone across size fraction and across all mineralisation types. This is a premium graphite product. Higher proportion of coarse and jumbo flake compared to Mozambique and vanadium free
•  Largest and highest grade JORC resource in Tanzania. 131Mt@ 7.9% TGC* with high grade portion of 37.6Mt @10.2%. Highest grades compared to Tanzania Peer group provide leverage for lower costs of production
•  High purity of Mahenge graphite tested to date indicate that it can be applied to the premium battery market. Potential cost, performance and environmental advantages if acid purification step can be eliminated. Spherical graphite testing currently underway in Germany and Asia

MNS- Cash operating cost LOM estimate of US$559/t

VRC - cant find scoping study nor $USD /t on VRC - perhaps they havent worked it out yet however should come out in their yet to be released PFS in Q4 (calendar or next year im not sure)

Note VRC have lower grades than BKT : A large Jumbo flake, JORC compliant, graphite resource: 214Mt @ 5.1% Excellent graphite concentrate purity produced – 98.3% TGC – from simplecrushing & flota-on process (without chemicals)


KNL - $ 500/t +


Note: next catalysts for BKT Below

• Anzaplan (Germany) spherical and expandable test results due mid August.
• Feasibility Study due Early September - ANY DAY NOW !!
• Offtake agreements by end of 2016