Kibaran Resources starts key study for Epanko Graphite Project
Kibaran Resources (ASX: KNL) has started an Environmental and Social Impact Assessment
(ESIA) for its Epanko Graphite Project in Tanzania following the signing
of a binding offtake agreement in December 2013.
This is
critical for the company to receive its Environmental Certificate from
the National Environmental Management Council that is in turn a key
prerequisite to obtaining a Mining Licence.
All three are the
longest lead time items in the approval and permitting process for
developing Epanko. The entire process is expected to take 16 to 18
months.
“We are pleased to have commenced the Environmental
Permitting and Mining Licence process as the next stage in developing
the Epanko Graphite Project,” executive director Andrew Spinks said.
“This
is the first of many positive steps towards project development
following the major milestone of a binding offtake agreement for
graphite sales.”
Offtake Agreement
Kibaran had on 23 December
signed a binding offtake agreement with a sophisticated European
graphite trader, which agreed to purchase 10,000 tonnes of flake
graphite concentrate per year, over a 5 plus 5 year period.
The
potential 10 year contract provides an independent endorsement of the
quality and commercial appeal of graphite at the Epanko deposit.
Epanko
The
Epanko deposit within the Mahenge Graphite Project currently has an
Inferred JORC Resource of 14.9 million tonnes at 10.5% TGC, for 1.56
million tonnes of contained graphite.
Notably, its hosts highly
valued and sought large flake sized carbon of greater than with 73.8%
greater than 106µm, 21.6% greater than 300µm, and with a low component
of lesser valued fines at 26.2%.
In addition, the resource
covers just 20% of the project area, providing strong potential for
further growth and underpinning long term development.
Analysis
The commencement of the key
Environmental and Social Impact Assessment marks the beginning of the
approval and permitting process to develop Kibaran Resources’ Epanko Project.
With a binding offtake agreement already in place, the stage is set for the project to start producing in 2015.
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