Chilalo Graphite Project

The Chilalo Project is located in the Ruangwa District of the Lindi Region in south-east Tanzania, 100km north of the border with Mozambique, approximately 180km west of the coastal port city of Mtwara on the Indian Ocean and 400km south of Tanzania’s largest city, Dar es Salaam.

Chilalo is situated within the Mozambique belt, which is well known for some of the world’s highest-grade and coarse flake graphite deposits.

In July 2014, Graphex, then IMX Resources Limited, announced that a review of historic rock chip samples from the Chilalo tenement had identified a significant number of samples with high TGC grades.

A drilling program commenced in September 2014 and a maiden mineral resource estimate was announced on 7 April 2015. Further drilling in 2015 delivered an increase in the mineral resource and an upgrade in the classification of the mineral resource (ASX announcement 13 October 2015) that underpinned the Pre-Feasibility Study (PFS), the results of which were announced on 23 November 2015.

Following a 1,365m drilling program carried out in the fourth quarter of 2016, the Company announced an increase in the Chilalo mineral resource, the Mining Licence for the development of Chilalo was granted in February 2017.

The 2018 PFS, which also incorporated up to date graphite prices, additional testwork and revised project parameters, formed the basis for an interim financing decision by funds managed by the Financier under which the Financier provided the Company a US$5 million secured loan facility.

The Company released its Definitive Feasability Study (DFS) in January 2019, underpinned by conservative ‘finance ready’ assumptions including pricing, product qualification timeframes, production and sales ramp-up. The results demonstrate that the Chilalo Project has strong margins with a significant near-term value-add market opportunity.

THE CHILALO RESOURCE

During August 2019, CSA Global completed an updated Mineral Resource estimate for the Chilalo Main and North East deposits of Chilalo. A total of 30 reverse circulation (RC) holes for 2,666 m and 50 diamond (DD) holes for 5,551.35 m have been drilled and analysed for graphite content directly covering the two modelled deposits.

THE CHILALO MINERAL RESOURCE ESTIMATE

The Mineral Resource was estimated within constraining wireframe solids using a core high-grade domain defined above a nominal 5% TGC cut-off within a surrounding low-grade zone defined above a nominal 2% TGC cut-off. The resource is quoted from all classified blocks above a lower cut-off of 2% TGC within these wireframe solids. The Mineral Resource is inclusive of Ore Reserves. Differences may occur due to rounding.

CHILALO ORE RESERVE

As part of its Definitive Feasibility Study released in January 2020, the Company reported an updated Ore Reserve.

Read more about the Chilalo Project, its Mineral Resource Estimate and Ore Reserve