PERTH (miningweekly.com) – A definitive feasibility study (DFS) into the Lindi graphite project, in Tanzania, estimates the project will cost $38.7-million to support production of 40 000 t/y of graphite concentrate over a 20-year period.
The DFS estimated that the project will generate a life-of-mine revenue of some $1.25-billion and average annual earnings before interest, taxes, depreciation and amortisation of $47.7-million, with the pre-tax net present value estimated at $323-million and the pre-tax internal rate of return estimated at 96.4%.
Cash costs for the Lindi project have been estimated at $292/t in concentrate delivered to mine gate.
“The finalisation of the DFS is a milestone event for our company and allows us to actively pursue funding options for the fast-tracked development of this fine, high-grade project,” said Walkabout Resources MD Allan Mulligan.
“Importantly, the study reduces the risk and increases confidence for our current and future investors,” he added.
The release of the DFS followed on from a scoping study that Walkabout released in January.
Walkabout said on Tuesday that the Lindi project is now being assessed for environmental-impact certification by the National Environmental Management Council of Tanzania and, following the award of this certificate, the mining licence application will be submitted.
The company is hoping to start project construction in the first quarter of 2018, provided that initial funding can be secured before the end of April this year.
Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
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