ASX-listed Graphex Mining has substantially increased the mineral resource estimate at its Chilalo graphite project in south-east Tanzania.
Tanzania – Chilalo’s high-grade indicated mineral resource has increased to 10.3 Mt grading 10.5% total graphitic carbon (TGC) for 1.1 Mt of contained graphite – which is a 73% increase in contained graphite.
This is also a 19% increase in Chilalo’s total high-grade mineral resource, which now stands at 20.1 Mt grading 9.9% TGC, comprised of:
- Indicated resource of 10.3 Mt grading 10.5% TGC for 1.1 Mt of contained graphite
- Inferred Resource of 9.8 Mt grading 9.3% TGC for 0.9 Mt of contained graphite
The company completed a 22-hole (totalling 2 083 m) infill diamond drilling programme designed to underpin the upcoming definitive feasibility study(DFS).
Given the project’s exceptional economics and that the mineralisation for the indicated mineral resource is estimated to be continuous from surface to an approximate vertical depth of 150m, the company expects a strong conversion of mineral resources to ore reserves upon completion of the upcoming DFS, expected in Q4 2019.
“We are extremely pleased that infill drilling has significantly upgraded our confidence in the Chilalo deposit with the latest results representing a 73% contained graphite increase in the indicated resource category,” says Graphex MD Phil Hoskins.
“We are confident that the expected increase in ore reserve will significantly extend the mine life and underpin project financing. Further to this, we are confident Chilalo has the potential for further extensions to mine life given the substantial strike length of untested, high-quality electromagnetic targets on our tenements,” he adds.
Expandable graphite focus
Since the initial discovery of Chilalo in 2014, Graphex has adopted a clear and differentiated strategy of understanding end markets and seeking to partner with strategic investors to enable delivery of the Chilalo project. Underpinned by a high proportion of large flake material with exceptional expansion characteristics, the company has targeted the expandable graphite market, which among many applications, is ideally suited to the manufacture of high-value graphite foils and flame-retardant materials.
Graphex has strategically targeted these expandable graphite applications based on their attractive growth and value characteristics. The size and growth expectations of the expandable graphite market applications, the premium prices for large flake graphite in general and the suitability of Chilalo graphite for the production of expandable graphite applications has meant that the Company has prioritised supplying the expandable graphite market as the primary focus.