BlackEarth Minerals NL (ASX:BEM) continues to make headway towards a definitive feasibility study (DFS) for flagship asset, the Maniry Graphite Project in Southern Madagascar.
This key economic study, due mid this year, will help the graphite producing hopeful provide certainty around Maniry’s proposed development and deliver information to meet debt financing requirements.
In the meantime, BEM has appointed a series of key advisors to its DFS team to get the study underway, which will incorporate results from recent and upcoming drill programs that are poised to materially increase the company’s graphite concentrate inventories.
The developments come just under a month since BEM unveiled its updated scoping study for Maniry, boosting the project’s lifespan to 13.6 years and projected life-of mine earnings to US$561.2 million.
Critically, ongoing drilling at the project has the potential to further increase the net present value (NPV) and internal rate of return outlined in the scoping study.
Developing graphite inventory
BlackEarth is working on the Maniry DFS not long after it delivered a 32% increase in the project’s indicated graphite inventory.
The update, unveiled in November and based on a recent exploration program, took the JORC-compliant indicated and inferred resources at the Razafy Northwest deposit to 29 million tonnes, grading 9.82% total graphitic carbon.
At the time, BlackEarth managing director Tom Revy said of the project: “The success at Maniry of discovering and subsequently defining a high-grade resource is testament to the skills and experience our team has in Madagascar.
“This additional discovery at Razafy Northwest of high-grade resources near-surface has the potential to materially enhance the project economics and significantly increase the projects life, and will be further investigated as part of the ongoing DFS.
“These results are exciting outcomes for the company and we look forward to updating the market with additional positive results in the short term.”
Fast forward to today, and BEM is using the newfound data to inform the upcoming DFS.
Mining and processing considerations
Under the key study, mining reserves will be determined from Maniry’s measured and inferred resources, which will be converted to the proven and probable categories.
Importantly, BlackEarth’s mining design means there are no project waste dumps required — any mining waste will be used on the tailings dam and lift developments, delivering key environmental and cost benefits.
In terms of processing — with optimisation test-work underway — the DFS’ case centres on the large-scale, 60,000-tonnes-per-annum pilot plant completed mid-2021.
Work on the DFS continues in line with other activities, such as infill drilling to define measured resources at Maniry, as well as statutory permitting and licensing work.
A full rundown of the graphite play’s development timeline is:
Key appointments
To advance the DFS, BlackEarth has appointed several key advisors to its team.
It’s hoped the expertise will provide critical information on the definitive study across the economic, geotechnical, resource development and production spheres.
A full list of appointments — and their advisory roles — is:
ESG work
Finally, BlackEarth continues to establish an environmental, social and governance (ESG) focus as it accelerates its flagship project towards development.
The team is working with the local community throughout the definitive feasibility study and is providing regular updates to villagers in Southern Madagascar.
BEM has also made food donations to a number of the villages and is working on an environmental and social impact assessment for the Maniry asset.
BlackEarth will continue making these ESG considerations as it advances the graphite play through the DFS stage.
