Black Rock Mining Ltd (ASX:BKT) has a 100% interest in the Mahenge Project in Tanzania which hosts a multi-generational graphite resource and is one of the largest JORC-compliant flake graphite resources globally, with 212m 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$115M per annual tonne of production of any development stage global graphite project
High Margin
- AISC margin of 63.1%
- Mine can produce three grades of product which provides the capacity to switch to higher quality product to achieve pricing premiums
Low Technical Risk
- Two substantial pilot plant runs of 110 tonnes
- Direct access to rail and grid power allows for sustained lower cost operation
- Construction underwritten by off-take agreements
Superior Economics
- NPV of US$1.16Bn
- IRR 44.8%
- 63.1% Margin
“An all in operating cost of $397/t for a product that sells for around about $1300/t“
