Black Rock Mining Ltd (ASX:BKT) has an 84% interest in the world-class Mahenge Graphite Project (Mahenge) located in Tanzania which hosts a multi-generational graphite resource and is one of the largest JORC-compliant flake graphite resources globally, with 213m tonnes @ 7.8% TGC, and a reserve of 70m tonnes @ 8.5% TGC.
The Mahenge Project is spread across 324 square kilometres of exploration tenements in Tanzania’s Ulanga district, approximately 250 km north of the border with Mozambique. 250 km west of the coastal port city of Mtwara on the Indian Ocean and 300 km southwest of Tanzania’s largest city, Dar es Salaam.
Black Rock’s Definitive Feasibility Study for the project considers a four-stage construction schedule to deliver up to 340,000 tonnes per annum of 98.5% graphite concentrate for 26 years of 98.5% LOI premium graphite flake concentrate with the ability to produce Ultra Purity flake of 99% LOI.
Low CapEx
- Lowest peak capital expenditure of US$225M* per annual tonne of production of any development stage global graphite project
High Margin
- Forecast first quartile costs due to hydro-dominated grid power, mean higher margin and more robust through the cycle
- Mine can produce three grades of product which provides the capacity to switch to higher quality product to achieve pricing premiums
Low Technical Risk
- Tier 1 scale (2nd largest reserve globally)
- Two substantial pilot plant runs of 110 tonnes
- Direct access to rail and hydro grid power allows for sustained lower cost operation
- Backed by largest ex-China anode producer POSCO
Superior Economics
- NPV10 nom US$1.4bn (post tax, post 16% FC)
- IRR 36% (Post-tax, ungeared IRR)
- US$518/t All-In-Sustaining-Cost**
- US$1,709/t Basket graphite price***
- 26 years Initial Operating Life
Foot Notes
1 See Black Rock ASX release dated 10 October 2022, Black Rock completes FEED and eDFS Update. All technical parameters, including in the estimation of Mineral Resources or Ore Reserves, underpinning the estimates continue to apply and have not materially changed. The estimated Ore Reserves and Mineral Resources underpinning the production and financial forecasts were prepared by Competent Persons in accordance with the requirements in Appendix 5A (JORC Code).
* Includes US$182m for Module 1 capex + US$33m for power line + US$10m for early works which can be completed pre FID. Power costs expected to be ~US8c/kWh less a meaningful rebate to recoup the costs of the power line. Forecast Capex has been classified as a Class 2 estimate with accuracy of ±10% as defined by AACE.
** Average over first 10 years.
*** Expert Consensus is the average forecast from Benchmark Mineral Intelligence, Fastmarkets and Wood Mackenzie over the first 10 years.
