Developing a high-quality graphite project for the rapidly growing global battery market
Updated Bankable Feasibility Study Presentation
Sydney, June 29, 2017 AEST (ABN Newswire) - Kibaran Resources Ltd (
ASX:KNL) provides the Company's latest presentation titled "Updated Bankable Feasibility Study".
Overview - The Case for Kibaran
- Epanko is positioned as one of the most advanced graphite projects globally
o Increased Bankable Feasibility Study (BFS) production case to 60ktpa to support new demand
o BFS conforms with international project financing standards, IFC Performance Standards (Equator Principles) and World Bank Environmental, Health & Safety Guidelines
o Positive initial review by KfW and launch of debt financing process
- Robust marketing strategy
o High percentage of large flake products from simple processing differentiates Epanko
o Offtake and sales agreements secured with blue-chip European and Japanese graphite and lithium-ion battery industry participants ensures sale of all production
o Strategy matches the "reality" of prevailing graphite markets
- Growth opportunities to enhance project returns
o Conversion of flake graphite to spherical graphite at Epanko has the potential to add significant value - feasibility study advanced and due for completion in Q3 2017
o Project economics do not include product sales into the high growth lithium-ion battery markets where significant increases in demand and value is expected
o Abundant mineralisation provides ample scope for production growth
BFS Key Highlights
- 50% increase in production to 60ktpa over an 18 year life of mine positions Kibaran to be a major baseload supplier of high value graphite products to traditional and emerging graphite markets
o Low pre-production capital of US$88.9m
o C1 operating costs FOB Dar es Salaam of US$500/t
- BFS delivers a high returning project:
o Pre-tax NPV10 of US$211m, internal rate of return:38.9%
o Annual EBITDA of US$44.5m (A$59.3m)
o Economics do not include sales into the high-growth lithium-ion battery markets
- Metallurgical test work demonstrates potential to produce a 99% carbon concentrate from fresh ore with no additional milling or cleaning stages
- BFS signed off by bank appointed Independent Engineer ('SRK') after rigorous due diligence
- Project conforms with stringent IFC and World Bank Social, Environmental and Safety Standards
- Executed marketing strategy with strong alignment to German industry and the battery supply chain in Japan, Korea and Taiwan
o 44ktpa - binding sales and offtake agreements in place covering initial production
o 16ktpa - under negotiation with existing partners and leading German carbon groups
- Debt financing program commenced under the leadership of Germany's KfW IPEX-Bank ('KfW')
- Feasibility study on production of battery grade graphite to add further value and due Q3 2017
A High Quality Graphite Deposit with Scale
- Mineral resource supports potential for depth and strike extensions of the Ore Reserve pit shells
- Mineralisation commences at surface with minimal cover
o Average LOM strip ratio 0.4:1
- Favourable mineralogy delivers quality and drives robust project economics
o High proportion of large flake sizes
o Graphite is easily liberated and delivers high yield
o Higher carbon grade achieved through simple processing
o Low levels of in-situ deleterious elements
VTEM Shows Highly Conductive Undrilled Western Zone with Significant Potential
- Significant mineralisation exists outside of the Mineral Resource estimate modelled on an 8% TGC cut-off compared to the 5% TGC cut-off utilised for the Ore Reserve
o Mineral Resource at lower 5% TGC is 113.3Mt at 7.2% TGC grade for 8.1Mt contained graphite
o Importantly the 7.2% TGC grade under the 5% TGC cutoff above is higher than comparable Tanzanian deposits of relative scale
- High conductivity identified in VTEM survey highlights the potential for the delineation of additional mineralisation along strike and at depth
- Only 1.13km of the 4km strike identified by VTEM survey has been drilled on the West Pit
o Remains open at depth with the deepest reported graphite intersection at 200m
o Potential to provide significant tonnages of additional graphite mineralisation
High Grade, Large Flake Provides Flexibility in Process Flowsheet Design and Products
- Process flowsheet based on established industry processes and equipment
- High level of independent testwork to support BFS including 200t bulk sample
o Bulk sample was toll treated through an operating graphite production plant
- High level of variability testwork completed
o Confirmed the potential to produce a 99% carbon concentrate for <150 micron flake from fresh ore
- Increased understanding of flowsheet dynamics to produce desirable properties for both industrial uses and high growth markets
o Epanko has the highest proportion of >150 micron flake and has designed a flowsheet to preserve flake size in this product range
To view the full presentation, please visit:
http://abnnewswire.net/lnk/T6K2BZ19
About Kibaran Resources Ltd
Kibaran Resources Limited (ASX:KNL) is a resource company focused on fast-tracking development of its advanced Epanko Graphite Project into production. With major project development milestones achieved Epanko is rapidly moving forward to becoming a long-term stable supplier of premium quality large flake graphite for the growing graphite market.
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