Black Rock posts graphite DFS

Black Rock Mining has detailed a capital expenditure of $US115 million ($162 million) for the first phase of its Mahenge graphite project in Tanzania, with plans to begin construction next year.

The Perth-based company released a definitive feasibility study for the project today, which has an initial output of 83,000 tonnes per annum.

The project has a mine life of 32 years, and includes three stages, with a final steady state production rate of 250,000tpa.

The first stage will include a 1 million tonnes per annum processing plant, with stages two and three each adding a processing plant.

According to the DFS, stage two will cost $US69.5 million, while stage three requires a capex of $US84.2 million.

Each stage will boost output by 83,000tpa.

Chief executive John de Vries said the study supported the economics of the project.

“The core element of the DFS was the operation of the 90t pilot plant, the largest plant ever run in the graphite sector at DFS stage,” he said.

“The plant provided invaluable data and operating performance for process plant design and flow-sheet optimisation.

“Critically, the plant also delivered eight tonnes of concentrate with which we could engage customers and develop a dialogue around preferences and product attributes.

“This study is about building a mine.

“The attention to detail, the level of data support, the effort and the engagement with stakeholders, positions the company to move into financing and construction.”

Black Rock is aiming targeting construction in mid-next year, with initial production in mid-2020.

The graphite aspirant has also recently signed an offtake deal with a Chinese graphite producer and a strategic agreement with a Chinese machinery company to supply plant equipment and source funding for the project.

Shares in Black Rock finished 6.45 per cent higher at 3.3 cents each today.