Name of the Project
Lindi Jumbo graphite project.

Location
The project is located in south-eastern Tanzania.

Client
Walkabout Resources’ currently owns 70% of the project, with an option to acquire the remaining 30% for a one-off payment of $1-million for each of the four licences. The Lindi Jumbo project is situated on only one of the licences, PL9992/2014, and the company intends using project capital to BUY the outstanding 30% of this licence. The stature of the other licences will not be affected.

Capital has been provided for this under the Scoping Study Capital Plan.

Project Description
The Lindi Jumbo project has total measured resources of 29.6-million tonnes grading 10.6% total graphitic carbon (TGC).

A scoping study completed on the project has shown it to be technically and financially viable, even at current ten-year-low prices, with no immediate or obvious impediments to mining.

Walkabout has chosen, during the initial stages of the scoping study, to consider two production-rate options.

The base case employed in scoping study is for the development of a mining and processing operation to produce an output of 25 000 t/y of four discrete products of graphite concentrate for sale freight on board from the Port of Mtwara. This will entail the milling of only three-million tonnes over the 20-year life-of-mine, an average of only 150 000 t/y.

The upside case model considers the increase of the initial production rate to 40 000 t/y of graphite in concentrate. The difference in processing capacity has already been built into the plant design and equipment sizing as a redundancy so that minimal additional capital would be employed. Mining production rates are increased to 260 000 t/y.

Openpit mining methods will be used.  The orebody outcrops on surface and is well suited to these methods. The processing plant has been sized for a feed of 300 000 t/y of ore with a grade of 15% TGC to produce 40 000 t/y of graphite flake concentrate, with an aver-age grade of 97% TGC.

This corresponds to a graphitic carbon recovery of about 90%.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The base case model has an estimated pretax net present value, at a 10% discount rate, of $169-million and an internal rate of return of 63%, with a payback of 24 months. The upside model has an estimated pretax net present value, at a 10% discount rate, of $304-million and an internal rate of return of 97%, with a payback of 19 months.

Value
Preproduction capital costs for the base case scenario are estimated at $35-million and for the upside model at $40-million.

Duration
The project development schedule indicates that the project could be built by the first quarter of 2018, providing that funding can be secured before the end of April.

Latest Developments
A definitive feasibility study is under way and due for publication during the first quarter of 2017. The company is in discussions with various parties regarding potential offtake deals or funding opportunities for the project.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Walkabout Resources, tel +61 8 6298 7500, fax +61 8 6298 7501 or email admin@wkt.com.au.