Significant Operational Benefits
EcoGraf Limited (ASX: EGR; FSE: FMK; OTCQB: ECGFF) has once again increased the proven ore reserve for the Epanko Graphite Project in Tanzania by 110% as part of recent due diligence reviews by KfW IPEX-Bank, Euler Hermes, and independent technical engineers!
The ore reserve now stands at 14.3 million tonnes at 8.8% Total Graphitic Carbon (TGC) for 1.25 million tonnes of contained graphite. The increase in ore reserve is based on the ‘Oxide Ore First’ approach, which allows for improved processing plant throughput and project economics. 80 percent of the soft near-surface oxide ore can be easily mined with an excavator as so-called ‘free dig material’.
The updated ore reserve is based on the development of Epanko (Stage 1) at 73,000 tonnes per year and offers considerable potential for later production expansion, as the ore reserve covers 2.3 km of the total 3.5 km strike length of the estimated mineral resources and only about 20% of the vertical extent. The ore reserve enables an initial 18-year mine life (LOM) for Stage 1, with additional mineral resources allowing for phased expansion to up to 300,000 tpa (see ASX announcement dated 28 April 2023).
The new mine design, implementing the ‘Oxide Ore First’ strategy, offers significant operational benefits. These include an increased initial processing plant throughput of 850,000 tpa when treating oxide ore to produce 73,000 tpa of graphite product. Low-grade material of ~3.1 million tonnes at 5.1% TGC will be stockpiled and processing deferred to the end of the current mining program, extending the initial Stage 1 operating period by a further 5 years to 23 years.
Conclusion: There are likely to be few graphite projects worldwide that have been as thoroughly investigated as EcoGraf’s Epanko project in Tanzania. The due diligence required by KfW and other potential financiers was certainly extensive and time-consuming, but ultimately contributed to significant optimization of the project. In particular, the Oxide-First strategy in the weathered ore near the surface has a positive impact on the project’s financial figures. Further project data shows a series of superlatives: The waste-to-ore ratio is 0.3 to 1, and the average thickness of the deposit is 200 meters. Already, the ore reserve enables mining operations over a period of 18 years.
