Name of the Project
Nachu graphite project.

Location
Tanzania.

Project Owner/s
Magnis Resources.

Project Description
The project is expected to deliver exceptional economic returns and low technical risk, as a result of the high-quality size, purity and crystal structure of the contained graphite flake in the Nachu deposit.

The bankable feasibility study (BFS), completed in 2016, declared a maiden proved and probable graphite ore reserve on the Block F and FS orebodies – the primary orebody assessed in the BFS – of 76-million tonnes at 4.79% carbon in graphite for 3.6-million tonnes of contained graphite.

This ore reserve provides sufficient material to support an initial 15-year mine life.

The study envisages a five-million-tonne-a-year processing plant with a nameplate capacity of 240 000 t/y of graphite concentrate.

Net Present Value/Internal Rate of Return
The 2016 BFS estimated a post-tax net present value, at a 10% discount rate, of $1.69-billion, and an internal rate of return of 98%, with a payback within 14 months of first production.

Capital Expenditure
The project has a preproduction capital expenditure estimated at $269-million.

Planned Start/End Date
Not stated.

Latest Developments
Magnis Resources has signed a power development agreement with US group Symbion Power, bringing the Nachu graphite project a step closer to development.

Under the terms of the agreement, Symbion will provide a power solution for the Nachu project by developing and operating a 30 MW gas-fired power station, an associated substation and a 132 kV transmission line to connect the graphite project to the main power grid.

Magnis will undertake further detailed work and complete an environmental-impact assessment for the power project.

Once the technical, economic and environmental feasibility of the power project has been confirmed, Symbion will be responsible for funding, developing and building the infrastructure, with the Nachu project acting as offtake partner.

Meanwhile, as announced in June 2019, the clearing of the Nachu graphite project access roads and community diversion roads is progressing smoothly, with clearing continuing over the past quarter. Roads have been surveyed and cleared, providing more than 16 km of additional logistically beneficial vehicle access to key planned project areas, including main access routes, as well as cap, plant site, tailings storage facility and mine laydown, in addition to the clearing of the community southern diversion road.

The southern diversion road is a new access road along the southern mining lease boundary, which has been developed to keep communities connected without the need to traverse the mining lease.

Key Contracts and Suppliers
Symbion (power solution).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Magnis Resources, tel+61 2 8397 9888, fax +61 2 8397 9801 or emailinfo@magnis.com.au.