Name of the Project
Mahenge graphite project.

Location
South-east Tanzania.

Client
Black Rock Mining.

Project Description
The Mahenge deposit is the fourth-biggest Joint Ore Reserves Committee-compliant contained graphite resource in the world. The project has a mineral resources estimate of 212-million tonnes grading at 7.8% total graphitic carbon (TGC) for more than 16-million tonnes of contained graphite. Mahenge will be an openpit mining operation based on mining the Ulanzi and Cascade deposits using a conventional truck-and-shovel method.

Ore will be processed using a three-stage approach, which will initially process one-million tonnes a year in Stage 1, increase to two-million tonnes a year in Stage 2 and finally process three-million tonnes a year after the completion of Stage 3.

The three stages will be developed over the initial years of the mine, with current resource tonnes indicating a life-of-mine of 32 years, after which the current defined deposits will be depleted. Total life of mine concentrate production is estimated at 6.6-million tonnes.

Mining will be undertaken using conventional opencut techniques. Processing will be undertaken using well-proven crushing, grinding and flotation methods, comprising:

• Stage 1, which will include a processing plant and infrastructure at a nominal design basis rate of one-million tonnes a year to produce up to 83 000 t/y of graphite concentrate in the first two years of production. The plant will be based at the Ulanzi pit.
• Stage 2, which will include a second one-million-tonne-a-year plant and associated additional infrastructure, doubling throughput to two-million tonnes a year, and graphite concentrate production to 167 000 t/y from Year 3 of operation. Stage 2 includes some shared equipment with Stage 1. The plant will be based at the Ulanzi pit.
• Stage 3, which will include a third one-million-tonne-a-year plant and associated additional infrastructure, increasing throughput to three-million tonnes a year, and graphite concentrate production of up to 250 000 t/y from Year 3 of operation.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a post-tax unlevered net present value, at a 10% discount rate of $895-million and an internal rate of return of 42.8%.

Value
Capital expenditure for Stage 1 is estimated at $115-million, with a 10% contingency.

Stage 2 is expected to cost about $69.5-million and Stage 3 $84.2-million.

Duration
First production is targeted in 2020.

Latest Developments
Black Rock is working towards securing project funding and progressing construction and operations.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Black Rock Mining, tel +61 8 9320 7550 or email info@blackrockmining.com.au.