Modern Mining March 2019

GRAPHITE

Walkabout enhances the case for Emerging African graphite producer Walkabout Resources, listed on the ASX, has announced the results of the enhanced Definitive Feasibility Study (DFS) for the high-grade Lindi Jumbo graphite project in Tanzania. The DFS was updated as a result of the substantial upgrade to the ore reserve. Highlights of the enhanced DFS include a Life-of-Mine revenue of US$1,44 billion, a 21,6 % increase, and a low development capital cost of US$27,8 million, a 6 % reduction.

T he Lindi Jumbo project is located in south-east Tanzania, approxi- mately 200 km from the Port of Mt- wara. Walkabout currently holds 100 % of the mining licence and the surrounding prospecting licence. A Defini- tive Feasibility Study (DFS) on the project was completed in February 2017 and updated in August 2017 in response to changing Tanza- nian government legislation. In the enhanced 2019 DFS, the mine life has increased from the 20 years estimated in the 2017 DFS update to 24 years. The mine will produce 40 kt/a of graphite concentrate at an operating cost (FOB Mtwara) of US$347/tonne,

which translates to very high cash margins of more than US$1 000 per tonne (FOB). The proj- ect delivers a high post-tax NPV 10% of US$197 million, a 9,4 % increase, and a robust post-tax IRR of 119 %, a 23,9 % increase. The mine will exploit an updated proven and probable ore reserve comprising 5,5 Mt at 17,9 % Total Graphitic Content (TGC). According to Walkabout, this positions Lindi Jumbo as the highest-grade graphite project in its peer group. The main areas of adjustment for the 2019 study update are the application of the updated mineral resource, announced in December last year, to the mining plan and a revision of capital

Drilling the discovery hole at Lindi Jumbo in 2015.

44  MODERN MINING  March 2019