Name of the Project
Munglinup graphite project.

Location
Western Australia.

Client
Mineral Commodities Limited (MRC).

Project Description
A prefeasibility study (PFS) has confirmed the project as a robust, low capital expenditure operation.

The PFS is based on a mineral resource of 6.03-million tonnes at 11% total graphitic carbon (TGC) using a 5% TGC cutoff. The mineral resource is inclusive of ore reserves. The estimated ore reserve is 3.44-million tonnes at 15.9% TGC.

The operation will have a nominal throughput of 400 000 t/y and produce an average of 54 800 t/y of high purity graphite concentrate.

The project involves the development of several small openpits with a flotation plant to concentrate graphite ores. Most of the ore will come from the Halberts Main pit and supplemental feed from the four satellite pits. Mineralisation is open in all directions. The graphite is hosted in gneiss metasediments, within the saprolitic zone, and as such it is expected at this stage that no drill-and-blast will be required.

Processing will be through a multicleaner stage flotation plant, with attritioning between each cleaner stage. As the ore is weathered, no primary crushing will be required. Tails will be thickened and transferred to a conventional, on-site centerline tailings storage facility. Graphite concentrate will be bagged and shipped to various markets.

The project has a mine life of nine years, with mineralisation open in all directions.

Potential Job Creation
Not stated.                                 

Net Present Value/Internal Rate of Return
The project has a post-tax net present value, at an 8% discount rate, of A$139-million and an internal rate of return 48%.

Value
Capital expenditure is estimated A$52.4-million.

Duration
Initial production is scheduled for late 2019.

Latest Developments
MRC has committed to advancing the project through feasibility study towards development.

Ongoing metallurgical testwork and a planned second phase drilling programme are expected to further improve project outcomes in the feasibility study.

Discussion are at an advanced stage with potential financing partners.

Further, detailed engineering and construction partner discussions are under way with preferred partner confirmation expected in the third quarter of 2018.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
MRC, tel +61 8 6253 1100 or email info@mncom.com.au.