Gratomic Inc. (TSX-V:GRAT, OTCQX:CBULF) has announced a progress update on earth-moving pre-benching activities at its flagship Aukam graphite project in Namibia.
Benching typically consists of successively cutting berms alongside the mountain edge in order to steadily expose underground material, at the same time ensuring the stability of the mountain structure. This process allows for the collection of graphite in stages as the platforms are constructed on the Aukam mountain.
According to Gratomic, the earliest stage of any benching program is the preparation, which occurs prior to any removal of earth from the mountain. This phase is very important as it is focused on maintaining safety and stability of the mountain structure throughout the entire benching process. Engineers must plan for the prevention of possible structural collapses due to existing adits and possible crevices that may exist within the rock formations.
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The company said its engineering team has completed the necessary pre-benching requirements, including the mobilization of the required yellow machines, the continuation of the access road to the upper part of the mountain, and the repositioning of the historic stockpiles to the run-of-mine (ROM) pad next to the onsite processing plant.
During the past few weeks, an excavator and a bulldozer have been mobilized to the site. The road opening is currently at 70% completion. During the process, 550 metric tonnes of historic stockpiles have been moved from the mountain to the ROM pad to be processed.
In a statement, Gratomic CEO Arno Brand said: "The safety of our people is our main focus. We review all engineering plans in minute detail and have plans in place to ensure that the benching program is being conducted safely and efficiently. I am happy with the progress and look forward to seeing the rapid changes on the Aukam horizon in the coming weeks, months and years."
Armando Farhate, COO and head of graphite marketing and sales, added: "Dealing with the complex vein structure we find in Aukam with the required safety precautions requires utmost knowledge and experience, and we trust our team has the required talent and dedication needed for the task."
Gratomic said that no preliminary economic analysis, preliminary feasibility study or feasibility study has been completed to support any level of production. According to Gratomic, no mineral resources, let alone mineral reserves demonstrating economic viability and technical feasibility, have been delineated on the Aukam property.
The company is working towards completing a feasibility study (FS) on the Aukam processing plant. The study, its recommendations, and their subsequent implementation, will provide conclusions and recommendation at a FS level of comfort relating to the scale-up of the existing processing plant to a commercial scale processing facility capable of producing the desired concentrate grades and production rates, according to Gratomic.
Large quantities of high-quality vein graphite have been shipped for testing to confirm its viability as an anode material. Gratomic said it is confident the test results will provide a competitive advantage in its desired target markets.
Gratomic also said the supply of graphite is conditional on it being able to bring the Aukam project into a production phase, and for any graphite being produced to meet certain technical and mineralization requirements.
Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will begin as anticipated or at all or that anticipated production costs will be achieved, according to Gratomic.
The company also noted that failure to commence production would have a material adverse impact on its ability to generate revenue and cash flow to fund operations and future profitability.
Gratomic is a multinational company with projects in Namibia, Brazil, and Canada. The company is focused on becoming a leading global graphite supplier and aims to secure a strong position in the electric vehicle battery supply chain.
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