Outstanding position on a global scale

It is now safe to say that the EcoGraf Limited (ASX: EGR; FSE: FMK; OTCQB: ECGFF) Epanko Graphite Project in Tanzania is the largest developable graphite mineral resource on the African continent. This statement is underpinned by the new resource estimate published by the company today. This new resource is 127% larger than the old one and now totals 290.8 million tonnes averaging 7.2% TGC (total graphitic carbon).

The resource is divided into three categories according to its statistical reliability: The measured resource comprises 32.3 million tonnes at 7.8% TGC for 2,500,000 tonnes of recoverable graphite, followed by 55.7 million tonnes in the indicated resource category at 7.5% TCG for 4,200,000 tonnes of graphite and an inferred resource of 202.8 tonnes at 7.2% TGC for 14,310,000 tonnes of graphite. In total, 21 million tonnes of recoverable graphite are estimated at Epanko across all three resource categories, although this figure is also most likely only a temporary interim figure.

The new Epanko mineral resource extends over a strike length of 3.5 kilometres and remains open along strike and down dip. Geologists agree that “significant further growth potential exists”. The new Mineral Resource estimate incorporates the results of the 2023 drilling and trenching programme, which includes record-breaking assay results for Epanko, including 43m of 20.8% total graphitic carbon, demonstrating continuous high-grade character. The new mineral resource paves the way for production expansion of the project to up to 300,000 tonnes per annum.

Figure 1: The cross-section shows the geological feature of the Epanko project. The planned open pit in the north (here on the right) shows the planned pit of 1.3 kilometres in length. Mineralisation is open along strike to the south and down dip. The distance from the open pit to “Mount Grafit” is 3.5 kilometres, but mineralisation continues further south. Graphite schist with extremely high TGC content (Epanko record) was intersected in the southernmost three trenches. This high-grade zone has a peak value of 29.5 % TGC. This opens up interesting potential for the planned gradual expansion of production from an initial 73,000 tonnes per year to up to 300,000 tonnes per year (ASX announcement of 28 April 2023).
Figure 2: The high-grade trenching results at Mount Grafit, some of which start directly at surface, show the potential along strike. Drilling and trenching confirms that the massive electromagnetic high is the contiguous graphitic unit, with the deposit up to 210 metres wide, providing the potential for long-term low stripping ratios.
Alte und neue Lizenz in der Draufsicht.
Figure 3: Old and new licence in plan view. The existing licence is outlined in black. The larger new licence (SML), which is due to be granted shortly, is outlined in red.

Conclusion: Ecograf's new resource consolidates the Epanko project's outstanding position on a global scale. It is now clear to everyone involved that Epanko is not only a particularly high-quality natural flake graphite project, but also an extremely long-lived one. The geological interpretation shows a single coherent unit of graphite mineralisation that will be included in the new Special Mining Licence (SML), which is expected to be granted by the Tanzanian government in the near future. Driven by the global market for lithium-ion batteries, demand for natural graphite is forecast by Benchmark Mineral Intelligence to increase by 31.5% per annum over the current decade. If you like, you can convert the 21 million tonnes of recoverable graphite in the total resource into the number of electric cars. If each vehicle battery requires 50 kilograms of graphite, more than 400 million cars could be equipped with graphite from Epanko.

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According to §34b WpHG and according to Paragraph 48f paragraph 5 BörseG (Austria) we would like to point out that principals, partners, authors and employees of GOLDINVEST Consulting GmbH hold or may hold shares of EcoGraf and therefore a possible conflict of interest exists. We also cannot exclude that other stock letters, media or research firms discuss the stocks we recommend during the same period. Therefore, symmetrical information and opinion generation may occur during this period. Furthermore, there is a consulting or other service contract between EcoGraf and GOLDINVEST Consulting GmbH, which means that a conflict of interest exists.

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