EcoGraf Limited (EcoGraf or the Company) (ASX: EGR; FSE: FMK; OTCQBX: ECGFF) is pleased to report an updated Ore Reserve for its Epanko Graphite Project (Epanko) in Tanzania.
The updated Ore Reserve is based on the 2024 Mineral Resource, announced to ASX on 11 March 2024, combined with the Company's 'Oxide Ore first' approach for the Project, enabling improved process plant throughput and project economics.
Key Highlights: Epanko Ore Reserve increased to 14.3Mt at 8.8% total graphitic carbon (TGC) for 1.25Mt of contained graphite 110% increase in Proven Ore Reserves, with an industry-leading 82% of total Ore Reserves classified as Proven, delivering increased confidence on metallurgical factors such as process recoveries, flake size distribution and concentrate grades A 29% increase in contained graphite from the previous Ore Reserve announced to ASX on 21 June 2017 (previous Ore Reserve 11.7Mt at 8.3% TGC for 0.97Mt of contained graphite) Updated Ore Reserve is based on the 73,000tpa stage 1 Epanko development, with significant potential to expand production, given the Ore Reserve represents 2.3km of the total 3.5km Mineral Resource estimate strike length, and approximately only 20% of the vertical extent Initial 18-year Life of Mine (LOM) for stage 1, with additional Mineral Resources providing for a phased expansion up to 300,000tpa (refer ASX announcement on 28 April 2023) New mine design that delivers the Oxide Ore first strategy, provides significant operational benefits;
Material assumptions of the Study include: Extensive metallurgical testwork has been completed. This testwork is described in this document and supports modifying factors applied in the Ore Reserve estimate. The mining process has been based on Measured and Indicated Mineral Resources reported in accordance with the JORC code, detailed mine designs, specifications from a geotechnical study and mining equipment determined from experienced Mining contractors. The processing plant design has been developed by experienced design engineers to support the flowsheet and the predicted recovery, throughput and production estimates. The infrastructure requirements have been defined by specialist engineers.
Classification criteria. The Ore Reserves comprises Measured and Indicated Mineral Resources only. The Study includes some Inferred Resources which are mined incidentally with the Measured and Indicated Resources and treated as waste for scheduling purposes. Over the 18 year mining period, approximately 82% of the material mined is within the Measured Resource category and approximately 18% is within the Indicated Resource category. Mining Method: Graphite ore will be mined from two open cut pits which will be developed at the Western Zone and Eastern Zone. These are approximately one kilometre apart and lie near the northern boundary of the Mining License area. The Western Zone consists of mining a strike length of 2,300m along the top of the ridge to a depth of 210m in the south, and the Eastern Zone sits partially over a hill within a small valley and will be mined to a depth of 125m and the pit will have a strike extent of 350 m. Mining will be by a conventional drill and blast, truck and shovel operation, using a mining contractor. Blasting will be required in both the West Pit and the East Pit, however 80 % of oxide Ore is classified as free dig. Ore will be loaded onto trucks and transported to the Run-OfMine Pad (ROM Pad). Waste rock will be transported by trucks to the waste rock storage facility. The height of the mining benches is determined according to physical characteristics of the mineralisation. It is assumed that a 5 m working bench height will be maintained with free dig or blasted material excavated in two discrete flitches, each nominally of 2.5m height to minimise dilution and to maximise ore recovery. To accommodate the 73,000tpa of graphite product, the mine schedule will target a ROM feed of 850,000 tpa when feeding Oxide ore. This will drop to 60,000 tpa and 720,000 tpa respectively when feeding Transitional and Fresh Ore. Processing Method: The design is based on an 850,000 tpa flotation processing plant treating Oxide ore which will be the predominate feed for the first 7 years, to produce 73,000 tpa of graphite product and Transitional and Fresh ore will be processed at a rate of 720,000 tpa, producing 60,000 tpa of graphite product. Low-grade Western oxide material ( 3.1 Mt at 5.1% TGC) will be stockpiled and processing deferred till the end of the mining schedule
Competent Person Statements
The information in this report that relates to Mineral Resources is based on, and fairly reflects, information compiled by Mr. David Williams and Mr. David Drabble. Mr. David Williams is a full-time employee of ERM and is a Member of the Australian Institute of Geoscientists (4176) (RPGeo). Mr. David Drabble is a full-time employee of EcoGraf Ltd and is a Member of the Australasian Institute of Mining and Metallurgy (307348). Mr David Williams and Mr David Drabble have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2012 Edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). The information in this report that relates to the Ore Reserve has been compiled by Mr Steve O'Grady. Mr O'Grady, who is a Member of the Australasian Institute of Mining and Metallurgy (201545), is a fulltime employee of Intermine Engineering and produced the Mining Reserve estimate based on data and geological information supplied by Mr Williams. Mr O'Grady has sufficient experience that is relevant to the estimation, assessment, evaluation and economic extraction of Ore Reserve that he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr O'Grady consents to the inclusion in this report of the matters based on his information in the form and context that the information appears
Contact:
Andrew Spinks
Managing Director
Tel: +61 8 6424 9002
About EcoGraf
EcoGraf is building a vertically integrated battery anode materials business to produce high purity graphite products for the lithium-ion battery and advanced manufacturing markets. Over US$30 million has been invested to date to create a highly attractive graphite mining and mineral processing business. In Tanzania, the Company is developing the TanzGraphite natural flake graphite business, commencing with the Epanko Graphite Project, to provide a long-term, scalable supply of feedstock for EcoGraf battery anode material processing facilities, together with high quality large flake graphite products for specialised industrial applications. Using its environmentally superior EcoGraf HFfree purification technology, the Company will upgrade the flake graphite to produce 99.95%C high performance battery anode material to supply electric vehicle, battery and anode manufacturers in Asia, Europe and North America as the world transitions to clean, renewable energy. Battery recycling is critical to improving supply chain sustainability and the Company's successful application of the EcoGraf purification process to recycle battery anode material provides it with a unique ability to support customers to reduce CO2 emissions and lower battery costs. Follow EcoGraf on LinkedIn, Twitter, Facebook and YouTube or sign up to the Company's mailing list for the latest announcements, media releases and market news.
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