AMN - TANZANIA: Mining licence granted for Mahenge

Black Rock Mining’s subsidiary Mahenge Resources has been granted two mining licences by the Mining Commission of the Tanzanian Ministry of Minerals which allow for development of the Mahenge Graphite Mine in Tanzania. These licences complement the Environmental Permit which was awarded on September 5, 2018.

Subject to the completion of detailed engineering and financing, Black Rock is now in a position to begin construction of the Mahenge mine.

The combined area of the two licences is 19.68 square kilometres covering the entire Mahenge mine project development program consistent with the definitive feasibility study (DFS) released on October 24, 2018.

They also encompass the Epanko area and intermediate areas, which are considered as prospective for extensional mineralisation, and were not included in the DFS mine development.

The licences have a term of 10 years before mandatory renewal.

Black Rock Mining’s CEO John de Vries said: “This milestone is a significant step in delivering the Mahenge Graphite Mine. Licensing gives all stakeholders comfort that Tanzania wants this project to be developed. Securing the Mining Licences is the final step in allowing us to obtain financing to construct the mine.

“We remain convinced this is the most compelling graphite development project globally.”

De Vries said that Mahenge’s “best in class financial metrics” were supported by:

- 90-tonne pilot plant delivering eight tonnes of product to over 20 global customers;

- The only project capable of delivering a concentrate grade of over 99% without the use of acid;

- The second largest graphite reserve supporting a 32-year mine life at 250,000 tonnes per annum with a study underway to increase this;

- Best in class logistics supported by rail to the largest port in the region; and

- Binding offtakes for up to 205,000 tonnes per annum in our third year of operation.

Mahenge has a JORC-compliant resource estimate of 212 million tonnes at 7.8% TGC incorporating reserves of 70 million tonnes at 8.5% TGC.

This reserve supports a mine life of 250,000 tonnes of graphite per annum for 25 years.

“Our next steps are to close out ongoing financing discussions and to complete the detailed engineering to enable the commencement of construction,” de Vries said.

Black Rock has also achieved a 99%-plus total graphitic carbon (TGC) concentrate at 93% recovery using ore from Mahenge.

This was achieved during Front End Engineering Design (FEED) process being undertaken in China by the company’s Chinese engineering, procurement and construction (EPC) partner Yantai Jinyuan Mining Machinery Ltd.

Yantai has replicated work completed in Canada by SGS Lakeshore Laboratories by delivering a 99%-plus TGC concentrate at lab scale from oxide ore.

The results were achieved without secondary leaching or any chemical intervention.

On delivery of a final flowsheet and metallurgical plan, Yantai will operate a 20-tonne pilot plant at associated facilities to validate the optimised design flow sheet under continuous operation. These operations are expected to begin at the end of March.

The recommended flow sheet will be reviewed and approved by CPC Engineering and Design who completed the Mahenge DFS, prior to final authority to operate the pilot plant.

www.blackrockmining.com.au