Name of the Project
McIntosh flake graphite project.

Location
The project is located in the eastern Kimberley region of Western Australia.

Client
Hexagon Resources.

Project Description
A prefeasibility study (PFS) completed on the project has confirmed the technical and financial viability of the initial project development and has provided a very strong rationale to advance the project through a feasibility study towards development.

The PFS outcomes are based on a mining and ore processing rate of 2.4-million tonnes a year, at an average diluted grade of 4.3% total graphitic carbon (TGC) to produce about 88 000 t/y of high-grade, 98% TGC flake graphite concentrate.

The current flowsheet comprises:
• three-stage crushing to a P80 of 12 mm;
• a 5.2 MW ball mill – closed circuit with cyclones to P80 of 106 µm;
• three-stage flotation;
• rougher/scavenger flotation, with open circuit regrind of rougher concentrate;
• cleaner flotation, with second-stage regrind;
• recleaner flotation;
• dewatering and filtration;
• drying;
• bagging; and
• tailings thickened and pumped to a tailings storage facility.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$272-million and an internal rate of return of 50%, with a payback of 2.5 years.

Value
Start-up capital cost is estimated to be A$148-million and includes a 15% contingency, based on the purchase of all new equipment; significant savings are expected to be made by securing second-hand components.

Duration
Construction activities are expected to be advanced before the wet season in late 2018.

Latest Developments
Feasibility study work is already under way to incorporate an exciting array of potentially significant enhancement opportunities to reduce capital costs and operating costs, and improve revenue uplift through process improvements and downstream processing testwork, as well as additional drilling planned to start midyear to increase the resource and reserve base.

The feasibility study is planned to be completed in the first or second quarter of 2018, supported by committed offtake agreements. Financing for the project is expected to be completed by the second quarter of 2018.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Hexagon Resources, tel +61 7 3221 6022, fax +61 7 3010 9001 or email info@hexagonresources.com.