Name and Location
Nicanda Hill graphite project, Mozambique.

Client
Thor Mining.

Project Description
An independent scoping study has indicated that Triton’s Nicanda Hill resource is a low technical risk, economically robust and commercially viable graphite project.

The project has a mineral resource estimate comprising 1.457-billion tonnes at an average grade of 10.7% total graphitic carbon (TGC) and 0.27% vanadium pentoxide classified as either inferred mineral resources or indicated mineral resources. Using a 15% TGC cutoff in the Nicanda Hill deposit, 28.1-million tonnes of graphitic material at an average grade of 15.8% TGC is contained in the Mutola, Grande and Macico (MGM) high-grade graphite zones.

The mining schedule comprises a relatively shallow openpit operation, focused initially on the MGM graphite zones in the vicinity of Nicanda Hill. The openpit will eventually be accessed by three separate ramps.

Triton believes that the shallow nature of the openpit operation, combined with a dilution grade averaging 8% TGC, represents an exceptionally low technical risk.

The scoping study proposes a straightforward crushing, milling and flotation process, together with screening and drying circuits. The results are based on a 30-year conceptual life-of-mine of 29 years of mining and one year of construction, as well as a processing operation of 1.8-million tonnes a year, resulting in an average production rate of 210 000 t/y of graphite concentrate.

Net Present Value/Internal Rate of Return
The project has a pretax net present value of $1.23-million at a discounted rate of 10% and a pretax internal rate of return of 137%, with a payback period of less than 12 months from the commissioning of the mine.

Value
The scoping study estimates capital costs of $110-million, including a $10-million contingency.

Duration
Construction is expected to start in the first quarter of 2016, with commissioning expected in the first quarter of 2017 and production in the second quarter.

Latest Developments
Triton confirms that a land-use licence application has been submitted to the Ministry of Coordination of Environmental Affairs and was due to have been finalised in December 2014. With the completion of the scoping study, preparation is now under way to submit an application for a mining licence for the Nicanda Hill resource, which includes undertaking a full environmental-impact assessment.

Most significantly, the positive and robust scoping study results signify the start of a comprehensive suite of detailed feasibility studies. The main objective of the feasibility studies will be to develop proven and probable reserves within the Nicanda Hill resource.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Thor Mining, tel +61 8 7324 1935, fax +61 8 8351 5169 or email corporate@thormining.com.