AMN - MOZAMBIQUE: Balama graphite resource doubled

Battery Minerals has doubled the graphite resource estimate for its Balama project in Mozambique and a feasibility study on the project is due to be completed in August.

The upgrade has boosted Balama’s total resources to 32.9 million tonnes at 10.2% total graphitic carbon (TGC) for 3.36 million tonnes of contained graphite. Before the upgrade, indicated resources totalled 8.9 million tonnes at 9.3% TGC and inferred resources 7.3 million tonnes at 11.8% TGC.

Balama is near Battery Minerals’ advanced flagship asset Montepuez and the company hopes that it will add to future production.

A scoping study on Balama indicated the project could annually produce up to 55,000 tonnes of graphite concentrate over 10 years based purely on the indicated resource. The company has also looked into expanding this to 100,000 tonnes.

Battery Minerals hopes to bring Balama online in 2022 to complement stage two production at Montepuez.

The company has also secured a mining licence for phases 1 and 2 of the Montepuez project.

Managing director David Flanagan said: “This is a significant milestone for the company as it means we have approvals for stages one and two of our Montepuez project and for production of at least 100,000 tonnes per annum of graphite concentrate.

“With the mining licence now secured and the resource inventory increased to such a huge extent, our strategy to become a major graphite supplier for the battery industry is well on track.”

The company aims to commission the first stage of the project in November this year, with first graphite shipments due in the first quarter of 2019.

Under stage one, Battery will produce up to 50,000 tonnes per annum of 96.7% pure graphite concentrate and the next stage will increase that to 100,000 tonnes by 2020.

Mr Flanagan said Montepuez would create 170 jobs when it is operating.

By the end of January, the company had pinned down four offtake deals for 80% of Montepuez’s initial graphite production.

Each deal gives Battery an assured buyer for the majority of its graphite for its first three years of operation.

www.batteryminerals.com