Lindi to Produce Up to 40,000 Tons Graphite Concentrate per Year

Australia-based mineral exploration company Walkabout Resources (ASX:WKT) estimates that the annual production target of its Lindi Jumbo Graphite Project in southeastern Tanzania is between 25,000t and 40,000t of graphite concentrate.

The projection is based on the results of a recently conducted scoping study for a proposed open pit mine and graphite processing plant at the Lindi project.

The study shows that the mine production rate is between 150,000t per annum for the 25,000 option and 250,000t for the 40,000 option.

The operating cost per ton in concentrate is estimated at USD290 to USD350, which is the second lowest amongst peer group and lowest in Tanzania.

Moreover, the study indicates that the project is economically viable even at current “10 year low” prices.

Walkabout Resources is currently in discussion with various parties regarding potential off-take deals or funding opportunities for the project.

“The Company believes that the highly robust economics, relative efficient capital intensity, premium products produced, and project size and approach will all facilitate successful fund raising for the project,” Walkabout notes.

Lindi Graphite Project

The Lindi Jumbo Graphite Project is located in the emerging graphite province in southeastern Tanzania approximately 75km to the west of the coastal town of Lindi.

In 2015, Walkabout entered into a Memorandum of Understanding (MoU) for a staged purchase of 70% of four prospecting licenses (PL’s 9992/2014, 9993/2014, 9994/2014 and 9906/2014) totaling 325km2.

Currently, the company holds 70% of four licenses at Lindi Jumbo with an option to acquire the remaining 30% share (currently owned by joint venture partners).

In December 2016, Walkabout announced that the Lindi high grade mineral resource increased from 11.7m tons to 29.6m tons (+165%), containing 3.25m tons of graphite.

In October 2016, the company announced that it will focus on expandable and battery markets following the first set of tests on the Lindi graphite conducted by an independent German laboratory, NGS Trading and Consulting.