Walkabout Resources Ltd (ASX:WKT) test work at its Lindi Jumbo Graphite Project in southeast Tanzania has produced a super jumbo, high margin graphite concentrate.
The concentrate contained up to 25.7% super jumbo flakes at a grade of 95.6% total graphitic content (TGC).
These verified results place the project in a high class of revenue per tonne of saleable concentrate.
Allan Mulligan, managing director, commented:
"The combination of very high grade ore and the recovery of an exceptional ratio of Super Jumbo and Jumbo flake sizes, positions the Lindi Jumbo project to benefit from superior product revenues while producing concentrate at industry-low working costs.
“The Lindi Jumbo graphite concentrate will potentially translate into the highest operating margins in the East African industry and insulate the project against expected oversupply price challenges.”
Metallurgical test work
Metallurgical characterisation and optimisation test work has been ongoing at laboratories in Perth.
The overall objectives were to achieve benchmark recoveries of graphite from representative composite samples of the expected run-of-mine material.
Flotation results from several tests delivered strong results in regard to flake size distribution.
The Domain 2 section of the resource produced 85.8% of the graphite in concentrate as above 180µm (large, jumbo and super jumbo flake sizes) including 25.7% in the super jumbo (+500µm) category at 95.6 % TGC.
This result places the Lindi Jumbo Graphite Project as 'best in class' for recovered flake size across all aspiring East African graphite developers.
Lindi Jumbo Graphite Project
The company has a 70% interest in a total exploration area of 325 square kilometres in southeast Tanzania.
Walkabout is fast-tracking the project development of Lindi Jumbo to commence a surface mining and processing operation at the site.
Further resource drilling will take place during July of 2016 which will enable the early application for a mining licence.
Lithium
Recently, Walkabout became a lithium explorer after receiving approval for three lithium license applications in Tanzania.
The approvals secure Walkabout's new dual lithium-graphite focus.
The lithium portfolio also has to grow, as it has filed applications for three prospecting licenses in a known lithium-spodumene setting in Namibia.
These applications are expected to be reviewed by authorities in June.
Analysis
These exceptional test work results will allow Walkabout to produce a highly sort after graphite concentrate.
Super jumbo flake sizes are forecast by industry analyst Stormcrow to sell for US$6,000 per tonne by 2020.
Using these metallurgical results, a forecast Stormcrow basket price can be calculated for Lindi Jumbo of US$1,529 and US$2,567 respectively pre discount.
The ratio of 25% of the product by mass of super jumbo material achieved in two tests is exceptional and will ensure the graphite concentrate is high margin and sustainable.
Further optimisation work leading to bench scale test work will continue as the company moves to commissioning design of a modular style flotation plant later this year.
These test work results are expected to be a catalyst for the stock.
News flow on the company's recent move into the lithium sector are expected with regard to:
- Updates on first pass mapping, trenching and sampling on the Tanzanian lithium licenses;
- Updates on the Namibian lithium license applications; and
- Updates on the accelerated development plan of the Lindi Jumbo Graphite Project.
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