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

UPGRADED 60ktpa Bankable Feasibility Study (June 2017)

  • Mineral Resource Estimate 30.7Mt at 9.9% TGC (upgraded March 2017)
  • Strong base for economics based on 60ktpa – US$88.9m Capital Cost
  • Internal Rate of Return: 38.9%
  • Payback period of 3.4 years
  • Pre-tax NPV of US$211m
  • Annual EBITDA of US44.5m
  • Life of Mine 18 years
  • Debt financing supported by in-principle German Government Loan Guarantee (UFK) up to $US40m
  • Debt funding discussions well advanced with German KfW IPEX-Bank for US$40m project debt – due diligence completed
  • African Development Bank, Nedbank – EOI of up to US$30m of additional funding
  • Mining Licence Granted with Environmental Approvals in place
  • 100% planned production supported by off-take and sales agreements
  • Significant mineralisation remains undrilled

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

Processing & Metallurgy

The process plant is designed with a throughput capacity of 720ktpa for an average TGC grade of 96% and average annual production of 60ktpa. The process plant is based on a crush and grind comminution circuit (two stage crushing circuit with single stage rod mill) followed by rougher flotation. The tailings are reground in a ball mill before they enter the scavenger flotation. The rougher and scavenger concentrates are combined and fed into the primary cleaner section, consisting out of polishing mills and cleaner flotation banks. The concentrate is than screened into two size fractions, with subsequent polishing and four stage cleaning applied with no further milling required in the cleaning circuit. Product is then dewatered, dried and screened into saleable size fractions. The flowsheet is optimised for a high yield of large flakes, however it could be easily modified to get higher carbon content by flotation if required.

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)

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

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