Evolution Energy Minerals Limited (ASX:EV1) has identified over 33km of high or ultra-high-conductance graphite targets via a recently completed fixed loop electromagnetics (FLEM) at its Chilalo Graphite Project in Tanzania.
Managing Director, Phil Hoskins, said the new targets are in addition to the existing Chilalo mineral resource, which itself is situated on a 2km high-conductance response.
“We are extremely encouraged by these results, demonstrating the scope for significant growth in the Chilalo mineral resource,” Mr Hoskins said.
“We already have an 18-year mine life based on Ore Reserves and resource growth is therefore not a pre-requisite for the financing or development of Chilalo.
“It is our intention however to demonstrate that Chilalo has globally significant scale with the potential for significant resources and reserve growth and the ability to ramp-up production to meet the rapid growth in demand for lithium-ion batteries, in which graphite makes up over 50% of the contained raw materials.
“Delineation of near-surface, high-grade graphite is expected to defer waste stripping, reduce mining costs, extend mine life and ultimately enhances Chilalo’s project economics.
“Previous work at Chilalo has found that high-conductance EM targets correlate with high grades and mineralisation thickness. We are confident that continuing to target high conductance EM targets will continue to deliver exploration success.”
Chilalo resources and reserves are situated on a 2km high-conductance target, while these most recent FLEM results have identified 8km of very high-conductance (stronger than Chilalo), 25km of high-conductance and 22km of low-conductance. There remains 31km of EM targets identified by airborne EM that are yet to be followed up by ground-based FLEM.
The Chilalo definitive feasibility study (DFS) identified a number of opportunities that could improve the Project’s economics, one of which was exploration upside.
The discovery of any additional near-surface high-grade deposits have the potential to contribute to a reduction in mining operating costs compared to those in the DFS, by deferring the need to mine the existing deposit to the depth assumed in the DFS.
The company is currently carrying out a trenching program across priority areas to determine surface projections, grade and thickness of the graphite deposits.
The results of the trenching work are expected to be available in Q2 2022 and will be used to identify targets for a drilling program that is expected to commence in May 2022.
Mr Hoskins said, notwithstanding the upside opportunity associated with exploration success, Chilalo is a robust project with an 18-year mine life and resource growth is not a requirement in order to obtain finance for construction. Evolution is targeting a final investment decision in the second half of 2022.
For further information please visit: https://evolutionenergyminerals.com.au/
