Time to focus ON THE INVESTMENT PROPOSITION and to show potential investors and HC viewers what we have to offer:
Black Rock Mining Limited (ASX:BKT) is focused on developing its Mahenge Graphite Project, which holds the largest high-grade flake graphite resource in Tanzania and is one of the largest contained graphite resources in the World. The Mahenge Project is undergoing a Pre Feasibility Study (PFS) which is due for completion in August/September 2016, following positive scoping study results earlier in the year.
A global resource of 131 million tonnes at 7.9% TGC holds 10.4Mt of contained graphite. This extensive resource contains a high-grade portion of 37.6Mt @10.2% TGC, or 16.7Mt @11.1% TGC.
Metallurgical test work indicates excellent flake size and quality with up to 99.1% TGC concentrates produced from a simple four stage flotation process. This provides potential to manufacture battery grade spherical graphite without the expense and environmental impact of a final chemical purification step.
The large resource with high-grade zones, high proportion of coarse flake and potential to produce exceptionally high purity coarse graphite flake offers flexibility to develop a long life mine that can supply high quality graphite products to customers for decades.
Our Focus
• Developing the Mahenge Project into a long-life producing asset
• Develop downstream value-added processing capabilities
• Leverage our exploration capabilities to discover and develop new assets
Technical Studies
Scoping and Pre Feasibility Studies
The Company completed and reported its Scoping Study Report on 22 March 2016.
Key assumptions and findings for the Scoping Study were:
• 52,000 tpa concentrate production from 500,000tpa feed
• Concentrate shipped by road to the port of Dar Es Salaam
• Capex US$57.3m
• The Study returned conceptual cash operating costs of US$458/t, indicating lowest cash costs in Tanzania
• More detail can be found in the Scoping Study announcement dated 22 March 2016
Based on the positive conceptual economics from the Scoping Study, a Pre Feasibility Study commissioned and results are expected in late August to early September.
Parameters are for 50,000 tpa concentrate production as a base case project with 25,000 tpa expansion capacity or by adding a second processing train of 50,000tpa then achieving 100,000tpa concentrate capacity.
Metallurgical Testwork
A substantial metallurgical test programme has been underway since October 2015 to enable a detailed understanding of the characteristics of Mahenge graphite mineralisation. The graphite concentrate is being tested for its suitability of use for conventional applications as well as the fast growing lithium ion battery market. This has provided valuable data to optimise a processing flowsheet.
This base programme has since been progressively optimised to the extent that in June 2016 a concentrate sample grading >99.1% purity was achieved across the entire size fraction >75μ. Of significance is that this was achieved from a simple four-stage flotation process alone and without the usual chemical purification stage.
Several graphite end users have commented that Mahenge concentrates at these high purity levels have potential to directly manufacture uncoated then coated spherical graphite without the cost and environmental impact of chemical post-processing. Typical spherical graphite processing utilises chemical purification as a final step.
Spherical Graphite Test Work
Mahenge concentrate is currently being evaluated in Germany for a full suite of tests on spherical graphite and expandable graphite properties. Spheronised graphite is being inserted into test cells to determine detailed electrical characteristics.
A larger 10t bulk sample is being prepared for pilot-scale processing to manufacture 1t of high purity concentrates for spherical graphite test work. This concentrate will be going to several spherical graphite equipment manufacturers for detailed evaluation and to determine a processing flowsheet.
Spherical graphite samples will also be produced for evaluation by end users.
Graphite marketing
BKT is marketing its graphite concentrates in Europe, Japan, Korea, the USA and China.
Numerous requests have been received for samples of flake and spherical graphite for detailed evaluation. The Company expects this evaluation process to lead to long term offtake agreements
Logistics
Infrastructure is relatively straightforward and being assessed in detail for the PFS.
The project is located 450km by road from Tanzania’s largest port in Dar es Salaam.
A rail link to the port is 60km from Mahenge at Ifakara Discussions have commenced for rail access.
The nearby Kidatu Hydroelectric Scheme runs 128kv power lines to Ifakara and a smaller power line to Mahenge which would have to be upgraded to provide the required 3-4Mw of power. Discussions are underway for the provision of grid power.
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