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Syrah eyes 1.2Mt/y graphite project in Mozambique

18th November 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – A scoping study for ASX-listed Syrah Resources' Balama West graphite project has placed a $91.6-million price tag on the development of a 1.2-million-tonne-a-year mine in Mozambique.

The operation would have an initial seven-year mine-life, and Syrah stated on Monday that the company would likely be able to sell about 220 000 t of graphite in the first year of production.

Estimated average mine gate costs have been placed at $101.58/t, and free-on-board costs at the Port of Pemba have been averaged at $198.01/t.

The scoping study did not include any potential for vanadium credits, despite the mineralisation being present in the region.

Syrah noted that the Balama West and Balama East tenements contain very wide high-grade zones of vanadium, with metallurgical testwork showing that the vanadium ore minerals report to the tailings, after floating off the graphite.

However, at the time the scoping study was undertaken, further testwork was still required to illustrate that the vanadium could be further concentrated to a saleable vanadium concentrate, or refined to vanadium pentoxide.

Following the start of the scoping study, Syrah has confirmed that the vanadium could be upgraded to a saleable concentrate.

Edited by Creamer Media Reporter

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