Walkabout Resources (ASX:WKT) believes the technical fundamentals underpinning the Lindi Jumbo Graphite Project located in Tanzania are amongst the best in the industry.
Walkabout most recently increased its high grade JORC graphite resource tonnage at Lindi by 165% to 29.6 million tonnes at 11.0% total graphitic content (TGC).
Lindi has confirmed the highest ratio of super jumbo (+500µm) and jumbo (+300µm) graphite flake size distributions in its East African peer group.
The project also has resource grades in the Measured category of up to three times that of other projects.
Allan Mulligan, managing director, commented:
"The project is advancing extremely well and the outstanding upgraded resource, coincident with the successful corporate re-structure, now position Walkabout for continued accelerated development of the Lindi Jumbo graphite mine.
"Following release of the definitive feasibility study early next year, we move directly to project funding options."
Recent resource upgrade
Through an infill drilling and trenching program including 24 holes for 1,735 metres, the high grade JORC resource of The Gilbert Arc deposit was increased by 165% to 29.6 million tonnes at 11.0% TGC for 3.25 million tonnes of graphite.
Furthermore, 40% of the resource is now classified in the Measured and Indicated categories.
The super high grade Domains 7, 8 and 9 section which are in excess of 20% TGC across the Measured and Indicated resource zones are accessible as discrete zones from surface and should facilitate exceptional head grade feed into the milling circuit during the production cycle.
Project outlook
In order to adequately de-risk the Lindi project, it is essential that the resource can demonstrate high grade and premium marketable product.
Lindi has advantages over its East African peers in respect of published flake size distribution and the grade of the Measured component of its JORC resource.
This relates directly to potential operational cost savings, reductions in capex and premiums to potential revenue.
The geometry of the Measured and Indicated resource facilitate a potential simple surface mining regime where the high-grade domains can be mined discretely.
This should translate into a premium mill head grade and significantly reduce capital and mining and processing costs.
Walkabout believes that it is imperative to achieve operating costs which can compete with current Chinese producing mines in order to mitigate potential market risk.