Two game-changing graphite discoveries in less than a month: Evolution Energy Minerals

Mon 22 May 23, 10:42am (AEST)
Drilling - Skilled Construction Worker in Protective Vest Overseeing Big Earthworks Machine Drill Excavating Ground
Source: iStock

Key Points

  • Evolution Energy Minerals has made a second graphite discovery at its Chilalo Graphite Project in Tanzania
  • The discovery has the potential to lower mining costs, increase production and expand the project's current 17 year mine life
  • Further exploration and drilling will be required to assess the full potential of the discovery

Evolution Energy Minerals (ASX: EV1) has marked a second graphite discovery in less than three weeks at its Chilalo Graphite Project in Tanzania. The company says the recent discoveries have the potential to lower mining costs, increase production and expand the project’s current 17 year mine life. 

The 11-hole drilling program confirmed mineralisation over 1.1 km out of a potential 5 km strike length towards the east of Chilalo and north of the recently reported ‘Chilalo East’ discovery. Assays returned near-surface hits with ‘significant widths and grades’ including:

  • 22m at 5.68% TGC from 80m

  • 18m at 5.18% TGC from 16m

  • 20m at 5.42% TGC from 80m

Total Graphitic Carbon (TGC) is the industry-standard 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 of Chilalo E2 to the existing Chilalo mineral resource and the recently discovered Chilalo East deposit is significant for Evolution,” said Managing Director Phil Hoskins.

Growing a 20 million tonne resource

Evolution Energy completed an updated Definitive Feasibility Study (DFS) for Chilalo in May this year, which outlined:

  • 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 20Mt resource takes place over a 2km strike length, neighbouring the two recent discoveries that consist of:

  • Chilalo East: 3.6km of potential strike

  • Chilalo E2: 5.0km of potential strike

Next steps

“Downhole electromagnetic surveys and follow-up drilling will be required as it is likely that there are more parallel graphite layers that were not hit by this drilling [program],” Evolution Energy said in a statement.

Further exploration and drilling will assist with resource modelling to support a resource upgrade and expand the scale of operations at Chilalo. 

DISCLAIMER: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Evolution Energy Minerals was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.

Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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