The results from a 44-hole reverse circulation drilling program at Evolution Energy Minerals’ (ASX: EV1) Chilalo Project confirms the discovery of high-grade graphite mineralisation towards the east of the tenement.
The Chilalo Graphite Project is located in south-east Tanzania, with a recently updated Definitive Feasibility Study (DFS) outlining it as a high margin, low capex and development-ready graphite project. Some of the key stats for the project include:
Mine life: 17 years
Mineral resource: 20.0Mt at grades of 9.9%
Average graphite concentrate production: 52,000 tonnes per annum
Post-tax NPV: US$338 million
Capital cost: US$120 million
The drilling program confirmed over 1.6km of high-grade graphite mineralisation out of a potential 3.5km strike length. Some of the significant intercepts include:
26m at 9.0% TGC from 8m
8m at 13.7% TGC from 50m
6m at 10.3% TGC from 66m
10m at 10.2% TGC from 80m
8m at 9.70% TGC from 90m
Total Graphitic Carbon (TGC) is the industry-standard unit of measurement for graphite mineralisation. Generally, TGC grades of above 4% are considered good and anything above 8% is considered high-grade.
“The shallow depth, width, grade and close proximity to the existing Chilalo mineral resource make this an exciting discovery for Evolution,” said Managing Director Phil Hoskins.
“These results clearly demonstrate the scope to materially grow the Chilalo mineral resource and thereby potentially enable a production expansion, extension to mine life and reduction in mining costs.”
“Downhole electromagnetic surveys and follow-up drilling will be required as it is likely that there are additional graphite layers that were not intersected by recent drilling,” said Evolution, which will assist with additional drill programs and resource modelling.
Outside of exploration activities, the company has engaged Auramet – A global metals and mining advisory company – to advise on project financing. Evolution believes the optimal financing solution would comprise of non-dilutive Government funding and offtake finance.
The Chilalo Project currently has one offtake partner – China’s Yichang Xincheng Graphite Co – for an initial 3-year term which represents 56% of the project’s planned production or 30,000 tonnes per annum.
Get the latest news and insights direct to your inbox