EPANKO: READY TO GO, READY TO GROW

The Epanko Graphite Project hosts the Epanko Deposit – a 100% owned graphite target comprising a Western Zone of mineralisation and an Eastern Zone of mineralisation. The Company’s primary focus is to fast-track premium quality graphite to development at the Epanko Graphite Project.

Overview

  • Ore Reserve 10.9Mt at 8.6% TGC
  • Bankable Feasibility Study Completed
  • Strong base for economics based on 40ktpa – US$77.5m Capital Cost
  • 41.2% IRR, 2.7 year payback, US$197.4m NPV and annual EBITDA of US$33.6m
  • Debt financing supported by in-principle German Government Loan Guarantee (UFK) up to $US40m
  • Debt funding discussions well advanced with German KfW-Bank for US$40m project debt – due diligence being completed
  • African Development Bank, Nedbank – EOI of up to US$30m of additional funding
  • 9 month development timeframe from financing
  • Mine life of 25 years is based on Ore Reserves
  • Mining Licence Granted with Environmental Approvals in place
  • 100% planned production supported by off-take and sales agreements
  • Significant mineralisation remains undrilled
  • Study currently in progress to increase capacity from 40,000tpa to 60,000tpa

Off-take & Sales Agreements Secured

  • 20,000tpa with ThyssenKrupp (Germany) to be sold to the steel industry
  • 10,000tpa with European graphite trader for other high-end uses
  • 14,000tpa Sojitz Corporation to be sold to battery markets
These agreements make Kibaran the first ASX-listed company to secure off-take and sales agreements for graphite sales, and the first company globally to sign a binding agreement for graphite sales in the sophisticated European graphite market. Having 100% of annual production secured in off-take and sales agreements de-risks the commercialisation and development of the Epanko Deposit and supports a strong long-term outlook for the project.

drill-rig

Value Add Growth – Lithium-Ion Battery Market

  • Strategic partnership and access to Japan-Korea Battery Market with Sojitz Corporation
  • Scoping Study completed for battery grade graphite with Pre-tax NPV of US$115m
  • Production-scale tests on bulk samples commenced
  • Superior quality confirmed by end users and discussions with strategic partners well advanced

Metallurgical Results

  • 85.7% of distribution > than 106 micron
  • Final carbon conc. of 96.3% TGC
EPANKO FLAKE SIZE DISTRIBUTION
Name Microns (µm) Mesh Size Portion Retained (%) Carbon Grade(%)
Jumbo >300 >48 20.0 97.1
Large >180 >80 35.4 96.7
Medium >106 >150 30.3 96.2
Small >75 >200 7.4 95.3
Fine <75 <200 6.9 92.6
100% 96.3%

* Micron (µm) and Millimetre (mm). 1mm = 1000µm and fixed carbon content determined by loss on ignition method (LOI)

Processing Plant

Production of Natural Flake Graphite

  • BFS flowsheet designed to maximise carbon grade while preserving flake size to capture competitive advantage in traditional high value flake graphite markets
  • Simple flowsheet design
  • Flotation circuit – rougher, scavenger, primary cleaner and secondary cleaner flotation stages
  • Concentrate will be filtered and dried
  • Dry graphite concentrate will be screened into various product sizes and bagged for shipping

Epanko metallurgy and FLOWSHEET

Project Location & Infrastructure

The Epanko Graphite Project is located 245km south-west of Morogoro in south-east Tanzania within the Mahenge District. The project is ideally located near major existing infrastructure which includes grid power, road and rail. The Kilombero Bridge which links the towns of Ifakara and Epanko is currently under construction and will allow an increase in future production for Epanko.

Epanko project location

Kilombero Bridge Construction Sept 2016
Kilombero Bridge Construction on route to Epanko