Walkabout Resources (ASX:WKT) has been granted its environmental impact assessment certificate for its Lindi Jumbo Graphite Mine located in Tanzania.
The certificate is an important pre-requisite to the mining licence application which can now be submitted.
Walkabout expects the mining licence to be granted during the September quarter of 2017.
Trevor Benson, chairman, commented: “The awarding of the EIA is a major milestone in moving towards a mining licence and to attracting development funding.
“The project can now progress along its planned development pathway in parallel with ongoing negotiations with potential off take partners and securing development capital.”
Background
Walkabout is fast tracking the development of the Lindi Jumbo Project to take advantage of forecast market conditions for flake graphite deposits with high ratios of large and jumbo flakes.
The company has developed a proprietary processing technique based on an existing and proven flow-sheet used elsewhere in Africa and which yields exceptionally high ratios of large, jumbo and super jumbo flakes into concentrate.
This premium product will allow higher than average revenues to be achieved.
Walkabout currently holds 70% of four licences at Lindi Jumbo with an option to acquire the remaining 30% share.
Project details
Lindi has a Mineral Resource of 3.24 million tonnes graphite grading 10.9% TGC and Ore Reserve of 809,081 tonnes graphite grading 16.13% TGC.
Lindi’s definitive feasibility study (DFS) demonstrated:
- Highest grade mineable resource in Tanzania leading to mill feed grade of >17% TGC;
- Lowest unit operating cost of US$292 per tonne in concentrate at mine gate;
- Lowest start-up capital at US$38.7 million;
- Highest ratio of Large, Jumbo and Super Jumbo (+180µm) flakes in concentrate;
- High weighted average basket price ($1,687) due to flake size distribution; and
- The manageable and realistic start up production rate reduces technical and market risk.
Off-take discussions
Most recently, Walkabout concluded a non-binding strategic sales and purchase memorandum of understanding (MoU) with a European based strategic graphite trading house.
The German based trading house, Georg H. Luh GhmB, will now commence commercial discussions on the sale and purchase of 10,000 to 12,500 tonnes of graphite per year.
The graphite will range across four series of purity and flake-size ranges and commence in 2018.
The parties will also work together in other areas of product marketing and development, specifically in the area of high value graphite products.
The discussions with the German based trading house support the outlook that a mining operation at Lindi is foreseeable in the near future.