BlackEarth Minerals NL (ASX:BEM) has revised the 2019 Scoping Study to produce a new 2021 Scoping Study for its 100%-owned Maniry Graphite Project in Southern Madagascar.
The 2021 Scoping Study is part of a Definitive Feasibility Study (DFS) for the Project, which is on track for completion in mid-2022. Engineering services firm CPC Engineering is undertaking Maniry Project DFS studies.
The updated December 2021 Scoping Study follows a material upgrade in the company’s Resource and other improved factors.
The material Increase to Resource Size and Grade announced on 17 November 2021– the additional resource increased BEM’s overall inventory by 22% in size with additional higher grade. The additional resource added 32% to the company’s Indicated Resource. 182,000 tonnes of contained graphite were added to the stated resource which increased the company’s mine life from 11 to 14 years
Highlights:
- Small reductions in OPEX – the Company has reviewed many of the mining and non-mining OPEX costs from the original Scoping Study and have identified overall cost reductions of US$900,000 pa.
- The Company has undertaken a review of various Stage 1 and 2 CAPEX assumptions from the Original Scoping Study and have identified cost reductions of US$2.7m in savings in Stage 1 costs and US$2.4m in Stage 2 costs.
- Modest increase in market prices – graphite concentrate prices have continued to improve over 2021 and are projected to increase over the medium to long term as demand pressures effect supply. As a result, the company’s Scoping Study overall basket price has been increased by 3% from US$1,215/mt to US$1,258/mt
- The Study includes forecast share of revenue that is to be received from its JV Operations in India, with leading Expandable Graphite Producer, Metachem.
- It also accounts for certain improvements in Graphite Concentrate prices which are forecast to grow further as supply shortages potentially occur in the medium terms.
- A strong business case for Maniry and Metachem JV operations in India has been identified.
- Larger resource with higher grade Indicated Material has allowed BlackEarth to assess a longer project mine life.
- New assessed mine life based on mining 100% of the stated Indicated Resource and 20% of Inferred Inventory.
- Upside potential from ongoing infill drilling and other exploration programmes.
- Stage 1 CAPEX analysis has resulted in reductions for some infrastructure and mine camp development costs. This has been achieved by assessing the cost of buildings on site and by allowing parts of the workforce to drive to site each day.
- Other infrastructure and consultants costs have been reduced in Stage 1 and 2 following a review of these. Non-mining costs are reduced as a result of an assessment of manning costs on site, within country and in Australia.
- The company, as part of its ESG Policy is committed to employee 80 – 90% of its employees from the regional community
For further information please visit: https://www.blackearthminerals.com.au/
