IM Graphite News in Brief 10 – 16 July

By Laura Syrett
Published: Thursday, 16 July 2015

Kibaran receives mining licence for Epanko; Western Mining Network snaps up Indonesian graphite explorer.

Kibaran Resources Ltd has been granted a mining licence for its Epanko graphite project in Tanzania.

The licence, which was signed by the Tanzanian Minister of Energy and Minerals, George Simbachawene, allows the ASX-listed explorer to extract and process graphite from Epanko on a site covering 9.49 square km for an initial period of 10 years.

All of Epanko’s mineralised zones are encapsulated within the licence, allowing Kibaran to proceed with plans to commence production at 40,000 tpa graphite before ramping up to 100,000 tpa.

Triton Minerals Ltd has initiated a preliminary exploration programme and a full environmental and social impact assessment (ESIA) at its Ancuabe graphite project in Mozambique.

The Australia-headquartered company has begun initial reconnaissance mapping and sampling at its Balama South project, also in Mozambique, and said that a definitive feasibility study (DFS) at its Nicanda Hill site is on track for completion by the end of this year.

Triton is awaiting approval of its reports on public consultations with local residents in the vicinity of its graphite projects. Pending the receipt of these approvals and the submission of studies by Coastal and Environmental Services Pty Ltd, Triton expects to have its ESIA finalised by early next year.

Fellow ASX-listed Western Mining Network Ltd has signed a heads of agreement to acquire private Indonesian graphite company, PT Grafindo Nusantara (GFN) in return for 5m newly issued shares in Western.

GFN owns projects in West Kalimantan with JORC resources confirming 8m tonnes graphite ore. The company owns two tenements, one of which is ready for immediate development and has a mining licence valid until July 2023. An adjacent property has an exploration permit valid until December 2016.

The parties have committed to complete the transaction within 60 days from signing the agreement on 13 July.

Zenyatta Ventures Ltd has filed its preliminary economic assessment (PEA) for the Albany graphite project in northern Ontario, Canada, on SEDAR – the Canadian system for systematic electronic document analysis and retrieval.

The TSX-V-listed company released the PEA on 1 June, which estimated that an open pit operation at Albany would have a mine life of 22 years, based on less than 50% of the indicated and inferred mineral resources at the deposit, at a 3,000 tpd rate for 30,000 tpa high purity (>99.9% C) graphite.

Gross revenue from the Albany is pegged at $4.8bn, with an after tax annual average cash flow of $110m, based on an assumed selling price of $7,500/tonne for purified graphite, with operating costs of $2,046/tonne.

Finally, in financial news, TSX-V-listed DNI Metals Inc. is to extend a private placement, originally announced on 27 May 2015, for another 30 days to allow for the completion of sub-agreements and transfer of funds.

DNI increased the size of the placement to Canadian dollar (C$) 900,000 ($697,000*) on 5 June, owing to "increased demand". So far, around C$795,000 of the raising has been completed and announced.

The company is developing a graphite project in eastern Madagascar, southwest of the port of Toamasina.

IM’s 5th Graphite & Graphene Conference will be held on 8-9 December at the Waldorf Hilton in London. For more information, contact Peter Gilfillan

*Conversion made July 2015