Kibaran Resources extends MOU with Richland for Tanzanian graphite project

Kibaran Resources (ASX: KNL)
has signed a three month extension to the existing Memorandum of
Understanding to consolidate its Merelani-Arusha Graphite Project with
the Richland Group’s graphite assets in Tanzania.
Kibaran has now largely completed its due diligence and is working with Richland to finalise the terms of the agreement.
Both groups are keen to finalise the agreement to allow the recommencement of graphite production at Merelani.
At
the Mahenge graphite project the drilling program commenced in March
remains on schedule despite progress being hampered by heavy rainfall.
The Environmental and Social Impact Assessment work, required for the Mining Licence application is ahead of schedule.
The
Environmental Consultant has completed the scoping study, which will be
submitted to the Tanzanian National Environmental Management Council
within the next week for approval.
The study could be approved by the end of May, allowing the next stage of field work to commence.
A league of its own
Kibaran
remains globally one of few listed companies with a sales partnership
and binding offtake agreement for the sale of graphite.
In late December 2013, it signed a binding offtake agreement with a sophisticated European graphite trader.
The
off-take agreement to purchase 10,000 tonnes of flake graphite
concentrate per year, over a 5 plus 5 year period, provides an
independent endorsement of the quality and commercial appeal of graphite
at the Epanko deposit.
Graphite is regarded as a critical
material for future global industrial growth, destined for high
technology applications including nuclear reactors and lithium-ion
battery manufacturing.
Epanko Deposit
Kibaran's 100%-owned Epanko deposit is located within the Mahenge Graphite Project.
The
scoping study for Epanko was based on an annualised process rate of
200,000 tonnes of graphitic feedstock at a grade of 10.5% Total
Graphitic Carbon.
This should produce around 20,000 tonnes of
graphite concentrate each year, consisting of 21.6% large flake, 52.2%
medium flake, and 26.2% fines.
Ongoing feasibility studies are now aimed at refining and upgrading this estimate.
Analysis
Kibaran’s
drilling program is a key step towards upgrading the existing Inferred
Resource of 14.9 million tonnes at 10.5% TGC to the Indicated and
Measured categories, allowing it to report on its 2013 Scoping Study
findings.
In addition to Kibaran's graphite interests, the Kagera Nickel Project remains underexplored and is located along strike of Xstrata's
Kabanga nickel deposit, also in Tanzania, considered to be the largest
undeveloped, high grade nickel sulphide deposit in the world.
With an advanced graphite project and a nickel exploration asset along strike from Xstrata's Kabanga, Kibaran's current valuation of $15 million looks primed for appreciation given news flow and catalysts ahead.


Related news
- Yellow Diamonds - A Gap in the Diamond market
- Coffee with Samso: Episode 1, Australian Tungsten Projects and How the Chinese Market View The Tungsten sector
- Chasing for Kryptonite, the unknown other Lithium source
- What is In-Situ Recovery? Mining in a National Park with no environmental footprint
- Buds & Duds: Cannabis stocks drop but Weekend Unlimited shares jump on CBD hemp seed news
- Hemispherx treats first patient with cancer drug Ampligen in Phase 2 clinical trials
- THC Global granted cannabis Manufacture Licence, shares surge 20%