PERTH (miningweekly.com) – ASX-listed graphite developer Kibaran Resources on Monday reported that its flagship Epanko project, in Tanzania, could support output of as much as 100 000 t/y.
The company initiated a review of its mining and processing schedule at Epanko, with a view to developing a growth strategy for the project beyond its initial 40 000 t/y production, which was currently the subject of a feasibility study.
The study confirmed that the eastern and western zones of the Epanko project could easily support a production rate of about 100 000 t/y of concentrate.
In terms of the net present value, the Epanko project could be worth as much as $251-million with the production of 100 000 t/y, compared with the scoping study estimate of $213-million based on the 40 000 t/y production profile.
Kibaran noted on Monday that while the production could, from a technical perspective, start at a rate of 100 000 t/y, the company believed that meeting the current demand by starting production at 40 000 t/y was prudent, coupled with a sound 100 000 t/y growth strategy, placing the company in prime position to respond quickly to future increases in demand.
“The development of a 100 000 t/y expansion strategy is an extremely exciting advance for Kibaran and allows for manageable step changes in production to meet anticipated growth in the market,” said Kibaran chairperson John Park.
“While the company has always believed and has demonstrated its graphite is among the best quality in the world, the Epanko project can now be considered competitive in terms of scale, to some of the large deposits currently being explored in other countries.”
Meanwhile, Park noted that the feasibility study into the 40 000 t/y production was progressing on schedule and within budget, and remained scheduled for completion in the June quarter.