Name of the Project
Lindi Jumbo graphite project.

Location
The project is located in south-east Tanzania, about 200 km from the Port of Mtwara.

Client
Walkabaout Resources currently holds 70% of the project, with the option to acquire 100%.

Project Description
The project has total mineral resources of 29.6-million tonnes grading 11% total graphitic carbon (TGC) for 3.26-million tonnes of contained graphite.

Walkabout Resources has reported a proven and probable maiden ore reserve of five-million tonnes, grading 16.13% TGC for 809 081 t of graphite concentrate.

The mining operation at Lindi will be outsourced to a contract mining company.

Weathered ore and waste will be excavated using a hydraulic shovel and loaded onto dump trucks for hauling out of the pit to the run-of-mine (RoM) stockpile, low-grade stockpiles or waste dumps. A tracker dozer will be used where the weathered material requires ripping before excavating. Fresh ore and waste will be drilled and blasted before being loaded and hauled in a similar manner.

Waste and ore will be transported from the pit to the waste dump and RoM pad or stockpile by articulated 30-t-capacity dump trucks. The primary mining equipment fleet required will consist of two excavators and two trucks. Provision has been made for ancillary equipment in the cost estimates.

The proposed flowsheet comprises:
• an RoM bin and apron feeder,
• a primary jaw crusher and secondary cone crusher,
• a drum scrubber with trommel screen (trommel screen oversize to secondary crushing),
• a primary rod mill,
• sequential rougher/scavenger flotation,
• a regrind cleaner flotation – four stages of concentrate attrition regrinding and cleaner flotation,
• filtration and concentrate drying,
• the screening of final product concentrate, and
• the bagging of concentrate.

The plant has been sized for a feed of 300 000 t/y of ore with a grade of >16% TGC to produce 40 000 t/y of graphite flake concentrate with an average grade of 97% TGC. This corresponds to a graphitic carbon recovery of about 85%.

Four high-purity products (96% to 98% TGC) are planned to be produced at Lindi Jumbo and the life-of-mine average ratio includes a weathered allocation of ore and a fresh allocation, with a cutoff determined at 10 m below surface. The products are targeted towards the high-end markets, with an estimated 8 000 t/y of super jumbo (+500 μm) and 14 000 t/y of the jumbo (+300 μm) products suitable for the expandable natural flake markets.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 10% discount rate, of $323-million and an internal rate of return of 97%, with a payback of just 22 months.

Value
Preproduction capital costs are estimated at $38.7-million.

Duration
Walkabout is hoping to start construction at Lindi in the first quarter of 2018, provided that initial funding can be secured before the end of this month.

Latest Developments
Walkabout will review the definitive feasibility study (DFS) results for its Lindi Jumbo project to assess the impact of the Tanzanian government’s legislative changes on the project economics.

The Tanzanian Parliament has enacted the Natural Wealth and Resources Bill 2017 and the Natural Wealth and Resources Contracts Bill 2017, enabling government to force mining companies to renegotiate contracts.

The Bills cover natural resource contracts and sovereignty, and will amend existing laws to enable government to renegotiate or dissolve contracts with multinational companies.

The country has also amended mining and tax laws, which will make it mandatory for the State to own at least 16% of mining projects, while raising export royalties for certain metals like gold, copper, silver and platinum, as well as uranium.

Walkabout previously told shareholders that the company was not subject to any material agreements in Tanzania that could be defined as having "unconscionable terms", with the new legislation to have little impact in this regard.

The miner has also tried to allay investor fears about several other clauses included in the Bills, including the use of local content, the return of income into Tanzania and the requirement to beneficiate all mined materials within Tanzania, saying that these are unlikely to affect the operation.

However, Walkabout has noted that it will review the Lindi Jumbo economics to assess the impact of the 16% free-carried interest clause. The company is also seeking advice regarding the possible impact to insurance and funding requirements for the project regarding an amendment that denies a miner the right to seek relief regarding any natural wealth and resources matter in a foreign court or tribunal.

“The board is of the view that the impacts of the amendments upon the project, while undesirable and in some cases onerous, are still workable and that the project should proceed during the phase of legislative clarification which will now occur,” Walkabout executive chairperson Trevor Benson has said.

According to Benson, the current DFS economics are such that continued development and realisation of value for the company remains a priority, and that none of the legislative changes will cause the company to halt or suspend investment in the Lindi Jumbo 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.