BlackEarth Minerals (ASX: BEM) has obtained robust results from the Definitive Feasibility Study (DFS) on its Maniry Graphite Project in Southern Madagascar.
Highlights:
Study finds Maniry will be financially robust, producing graphite which meets the criteria needed for processing into lithium battery components
Key Points
• Maniry Definitive Feasibility Study (DFS) confirms the Project will generate compelling financial returns and be technically robust
• The findings are based on a flowsheet designed by Independent Technical Experts
• The DFS confirms Madagascar is an optimal location for graphite processing and has
potential to be the largest producer of graphite outside China
• Tests confirm Maniry graphite will meet the requirements for many value-added products, including lithium batteries and other decarbonisation-related products
• Detailed Environmental & Social Impact Study (ESIA) program is ongoing with the aim of further enhancing Maniry’s viability
The Study is based on work conducted by highly experienced and independent graphite design and construction engineers, CPC Engineering (CPC), which completed the flow sheet design, advised on a range of mining and infrastructure requirements and assessed the capital requirements for Stage 1 and Stage 2 of the project.
The work undertaken by CPC and other highly experienced advisers, has resulted in the following:
1. A detailed engineering design of the project including mining, processing and other operations
2. An optimised schedule that provides for selective mining of high-grade product in order to maximise near-term economic outcomes
3. Detailed cost estimates for all components of the operation
4. A detailed operational and development plan for the short term construction of all related infrastructure.
Updates from Previous Scoping Studies
Stage 1 CAPEX has increased from the Scoping Study of November 2021. This is due primarily to:
– Larger process plant equipment incorporated into the initial flowsheet. This is a direct result of a significant increase in grade / product produced in Stage 1 which requires a larger flotation circuit, dryer, screening and bagging equipment. The primary crusher has also been upsized to meet Stage 2 requirements.
– A material increase in equipment and freight costs experienced over the past 12 to 24 months
The incorporation of larger equipment into Stage 1 has resulted in a fall in Stage 2 CAPEX despite current inflationary conditions. This inclusion will also allow for a quicker and less disruptive construction and commissioning period for Stage 2 expansion.
The additional strategic investment in Stage 1 CAPEX has, overall, enhanced the project’s viability and will provide for significant and continual ongoing development and expansion. Overall CAPEX improvements have resulted in an increase to Stage 1 concentrate production output of 30% on average and over 12.5% per annum from Stage 2.
Additionally, substantial resource expansion during 2022 has contributed greatly to the Project’s increased life of mine, project returns and long-term project revenue. The Company intends to undertake additional exploration programs within the high-grade Razafy North West area to increase the resource even further with the intention of adding significantly to project economics.
“The DFS confirms that Maniry is on track to be a world- class graphite project which will generate strong financial returns underpinned by an exceptional resource and robust processing route,” BlackEarth Managing Director Tom Revy said.
“The study supports our view that Maniry will be perfectly placed to capitalise on the enormous opportunity to supply graphite for use in lithium batteries.
“The graphite supply shortfall is widely forecast to grow rapidly from next year onwards, increasing prices and profit margins for producers in the process.
“Demand for non-Chinese graphite is expected to be even stronger as battery manufacturers and EV makers look to diversify their sources of supply.
“Maniry’s location in Madagascar is also an important strategic advantage. The Government there is highly supportive and the country’s production and export of graphite is projected to expand rapidly over the next few years.
“This DFS provides more firm evidence that we have all the ingredients required to take full advantage of what is rapidly shaping up to be a boom time for graphite producers”.
For further information please visit: https://www.blackearthminerals.com.au/
