Company Overview

Company Overview

About Graphex

Graphex Mining Limited is an Australian exploration and development company, focused on advancing the Chilalo Graphite Project located in south-east Tanzania. Chilalo is host to a high-grade mineral resource (with an Ore Reserve) and has demonstrated an ability to produce a premium graphite concentrate with a substantial portion of large and jumbo flake material. Chilalo graphite possesses outstanding expandability characteristics, making it ideally suited to the rapidly growing expandable graphite market.

Graphex is well advanced in negotiations with a Chinese syndicate led by CN Docking Joint Investment and Development Co Ltd (a subsidiary of China National Building Materials Group) on the terms of an agreement for the joint venture development of the Chilalo Graphite Project, with a non-binding term sheet agreed in mid-2017.

Graphex has an experienced board and management team with specific skills, and extensive experience, in African based project development, exploration, mining and processing. The Company has a well-established presence in Tanzania through its long history of exploration at the Lindi region in south-east Tanzania.

Chilalo Graphite Project

  • Produces a high quality product
    • 69% in large, jumbo and super jumbo flake categories
    • Saleable concentrate grade achieved from basic flotation
    • Exceptional expandability – 1,500x (1,500 times) and excellent expandability rates achieved at low temperatures
  • With outstanding expandability results, focus is on the rapidly growing, high value expandable graphite market
  • End user focus has resulted in a strong strategic relationship with a Chinese syndicate led by CN Docking
  • Chilalo is technically sound with high margins, low capital intensity and attractive returns, results of a pre-feasibility study completed in November 2015 include:
    • Pre-tax NPV of US$200 million
    • Pre-tax IRR of 62%
    • Pre-tax payback period of 1 year and 7 months
    • Annual production: 69,000 tonnes of graphite concentrate
    • Pre-production capital cost of US$74 million
    • FOB operating costs of US$490 per tonne
    • Forecast basket price of $1,217 per tonne – attractive operating margin
  • Updated Feasibility Study currently under preparation that is expected to deliver materially improved project economics
  • High grade JORC Mineral Resource and Ore Reserve – February 2017:
    • Indicated and Inferred resources of 16.9 Mt grading 10.2% TGC for 1,722 kt of contained graphite
    • Total JORC Mineral Resource: Indicated and Inferred resources of 53.5 Mt grading 5.6% TGC for 2.9 Mt of contained graphite
    • Probable Ore Reserve 4.7 Mt grading 11.0% TGC for 517 kt of contained graphite
  • Significant resource upside
    • Exploration target tonnage (100-350Mt @ 3-11% TGC)
    • High conductance EM targets located on the Chilalo Mining Licence area
  • Fully permitted for project development

Location of Graphex Tenements

02A. gfx001v2_Tanzania