Site Works Commences at Tanzania’s Chilalo Graphite Project

On 22^nd November 2024, Australia’s Evolution Energy Minerals (ASX: EV1) announced the commencement of early works at its Chilalo Graphite Project site in southeastern Tanzania.

The early site works include the construction of an access road and the pre-clearing of the plant site and are essential steps in advancing the project toward full-scale development.

The new road is expected to facilitate the efficient movement of materials and personnel and will play a critical role in ensuring seamless progress as construction activities ramp up.

A key enabler for the construction was the transfer of the required land to Evolution, following the successful implementation of the Resettlement Action Plan (RAP).

Compensation payments under the RAP have been completed, ensuring a smooth transition of the land for the project.

Pre-clearing activities at the plant site are underway to prepare the area for subsequent phases of development.

This foundational work will ensure the site is ready for the next stages of construction as it expects to complete these early works by the end of 2024, paving the way for significant developments in 2025.

A final investment decision (FID) for the Chilalo Graphite Project is anticipated for the upcoming year.

As the company moves closer to construction, the Chilalo Graphite Project is poised to create opportunities for both the company and the surrounding communities.

The Chief Executive Officer of Evolution, George Donne, expressed enthusiasm about this progress. He highlighted: “We are making important steps toward commercialization of our Chilalo project and are excited to begin these early works, which are essential for the successful execution of our Project in Tanzania. This marks the start of a new chapter for our company as we advance towards construction. The planned development has been designed to impact positively the local community where we operate and we are proud to have strong local support for the Project and for the opportunities it will create.”

The Chilalo Graphite Project

The Chilalo Graphite Project is a significant mining initiative located in southeastern Tanzania, specifically within the Nachingwea property, which spans approximately 5,400 square kilometers.

The Project is operated by Evolution Energy Minerals, a subsidiary of Marvel Gold, which acquired it from Graphex Mining (formerly IMX Resources) in 2014.

It is located about 100 kilometers north of the Mozambique border and 180 kilometers west of Mtwara, a coastal city on the Indian Ocean, and designed as an open-pit mine with an estimated operational life of 17 years.

The Project boasts a post-tax net present value (NPV) of US$ 338 million and an internal rate of return (IRR) of 32%, indicating robust economic potential.