Grade may not be everything, but high grades like those seen by graphite company BlackEarth Minerals on its Razafy Northwest prospect in Madagascar are sure to boost its development plans for the project. Maniry graphite.
Typical economic graphite deposits in Madagascar operate at grades between 5% and 7% of total graphitic carbon.
The grades that BlackEarth (ASX: BEM) sees in the drilling at Razafy Northwest, about 600 m as the crow flies from its Razafy deposit, eject it from the water.
The company said previously reported intersections of the high-grade find have now been extended, including:
- 7m at 16.3% TGC (from 5m) including 15.3 m at 25.2% TGC
- 9m at 9.4% TGC (from 3m) including 16.0m at 14.12% TGC
- 2 m at 11.9% TGC (from the surface), and;
- 8m at 12.9% TGC (from 17m).
The rest of the analysis results for the current campaign must be received and communicated in early October.
“These latest results demonstrate the enormous potential value that exists in the Northwest Zone,” said BlackEarth Managing Director Tom Revy.
“The increased widths, the continuity of high grades and the metallurgical results show that the Maniry deposit (which includes the Razafy and Razafy NW zones) is comparable to the best projects in the world.
Rank moves the dial to Maniry
One of the important aspects of BlackEarth’s Maniry project, for which a DFS is expected next year, is the impact of the note on its numbers.
BlackEarth has a resource through the Razafy and Haja of 20.2 Mt at 6.51% of total graphitic carbon for 1.316 Mt of contained graphite.
About 8 Mt at 7.2% graphite belong to the highest category indicated, the remainder being deducted.
A January 2019 scoping study described a capital cost of US $ 41 million for its first stage of 500,000 tpa, delivering a pre-tax NPV of US $ 103 million with an internal rate of return of 42%, generating ~ 30,000 tpa of graphite at an operating cost of US $ 593 / t FOB.
This is estimated at a food grade of 6.2%. If Maniry supplies average feed grades of 7.2%, this NPV will increase to US $ 152 million with an IRR of 55%.
At 8.2% of TGC, those numbers climb to $ 201 million and 68%, for 9.2% to $ 250 million and 81% and adding 4% to feed quality to bring it to 10 , 2%, the NPV becomes $ 299 million with a very convincing IRR. by 94%.
“Given the sensitivity of the project to food quality, the results achieved to date in the Razafy Northwest area have the potential to significantly improve the overall economics of our project,” said Revy.
The results of preliminary metallurgical testing at the ALS Laboratory in Perth are also promising.
Based on six diamond drill samples from Razafy Northwest ranging from 3.64% to 20.82% TGC, initial flotation tests reached a high grade concentrate of 98.4% TGC with generally higher recoveries at 90%.
A mineral resource update incorporating drilling at Razafy Northwest is expected to be released in the fourth quarter.
This article was developed in conjunction with BlackEarth Minerals, a Stockhead advertiser at the time of publication.
This article is not advice on financial products. You should consider getting independent advice before making any financial decisions.