AMN - TANZANIA: Positive Bunyu project test results

Volt Resources has received positive results from the first stage of a test-work program on ore from the Bunyu Graphite Project in Tanzania. The results demonstrate that there is scope to improve sales revenue from Bunyu products

Initial results show a large increase in the percentage of high price (+30# and +50#) graphite flake as well as a reduction in the lower-priced graphite flake.

The test program was undertaken by respected technical group American Energy Technologies Co (AETC), which is headquartered in Chicago, Illinois.

In January 2020, Volt commissioned AETC to undertake a test-work program using a representative sample from drilling completed as part of the Stage 1 Feasibility Study at the Bunyu project.

A graphite product from the Bunyu ore sample was prepared and analysed for certain physical, chemical and processing properties to provide information for its suitability for several value-added graphite market applications including as anode feedstock for lithium-ion battery cells.

The representative sample of ore was obtained from a composite sample produced from a metallurgical drilling program undertaken as part of the Stage 1 Feasibility Study.

Volt’s Bunyu Graphite Stage 1 Project will produce on average 23,700 tonnes of natural flake graphite product annually at up to 96% TGC.

The samples supplied were screened to -3.35mm and this was confirmed with a light top -size crush at the US Laboratory prior to grinding. Wet grinding was undertaken in a ball mill in 4.5lbs batches for 5 minutes at 70% solids.

Polishing mill utilised 0.5” diameter alumina balls at 20 minutes for 50 wt. % solids as the operating conditions.

The recovery of 68.5 wt.% of the total available concentrate was deemed appropriate by the consulting laboratory, extracting what they believe was as a fully representative sample of flake graphite product sample for thermal purification by the induction furnace into the secondary processed grade.

There is a substantial increase in the percentage of high priced +30# and +50# graphite flake with a consequent reduction mainly in the lower-priced fine graphite flake.

With further test work and analysis, this could have major economic benefits for both the Stage 1 and Stage 2 Bunyu project.

Managing director Trevor Matthews said: “We are delighted with these initial test-work results, which is further confirmation to the previous test-work programs during the PFS and FS stages of project study and development that Bunyu’s flake distribution is suitable for supply to traditional markets and for use in new high demand applications such as battery anode end-use markets.

“Given these results, there is an opportunity to make improvements to the project economics outlined in the Stage 1 Feasibility Study for Bunyu.

“Our Stage 1 funding initiatives continue to advance, even in light of the COVID-19 pandemic which is causing delays in the process and I look forward to providing updates on our Mauritian Note Offer and other funding sources in due course.”

The company has also extended the closing date of its US$30 million Mauritian Note Offer to June 30. The offer, which opened on January 27, is now expected to have its first day of trading on the Stock Exchange of Mauritius DEM on July 6, 2020.

Funds are intended to be used to help develop the Bunyu flake graphite project.

Volt’s wholly-owned subsidiary Volt Graphite Tanzania Plc is aiming to raise US$15 million through the issue of senior notes with a greenshoe option of up to US$15 million to raise a total of US$30 million by way of private placing on the Development and Enterprise Market (DEM) of the Stock Exchange of Mauritius.

Due to the recent and widespread impact of the COVID-19 pandemic on financial markets and the associated delays as institutions and investment groups change their work arrangements leading to delays in conducting due diligence and the deferral of investment decisions, the company is providing potential investors with additional time to complete these processes.

Several alternative funding proposals were also presented to Volt as a result of the engagement with numerous investment groups as part of the note offer marketing process and these are being progressed in parallel with the note offer process.

www.voltresources.com