Evolution Energy Minerals Ltd (ASX:EV1) has been granted a new Mining Licence (ML) for the Chilalo Graphite Project in Tanzania for an additional 10 years with a new, single Prospecting Licence (PL) expected within days.
The new ML has been granted by the Government of Tanzania to Kudu Graphite Limited, which was established as part of a framework agreement and shareholders agreement concluded with the Government of Tanzania in April 2023.
Kudu, which was established for the purpose of holding the Chilalo licences and permits and undertaking the development of Chilalo, is owned 84% by Evolution (indirectly) and 16% by the Government of Tanzania.
Potential for resource growth
The company has also received encouragement from final results of reverse circulation (RC) drilling of regional targets at Chilalo that further confirm the potential for material growth in the mineral resource.
Chilalo hosts a high-grade resource of 20.1 million tonnes at 9.9% TGC for 1.991 million tonnes of contained graphite.
Drilling highlights include 20 metres at 9.6% TGC from 74 metres and 12 metres at 8.4% TGC from 14 metres.
“Will provide flexibility”
Evolution’s managing director Phil Hoskins said: “We are extremely pleased to have been granted the new Mining Licence over the Chilalo Project area, refreshing and extending our tenure for at least the next 10 years.
"This is a key requirement of project financiers undertaking due diligence on the debt finance.
"The granting of the new Prospecting Licence with a nine-year term will provide a great deal of flexibility in management of our exploration program.”
Consolidating licences
The new ML and new PL cover 170.8 square kilometres, the entire area of the Chilalo Graphite Project.
This new ML covers the area of the previous mining licence (ML 569/2017) while the new PL will cover the area of the previously held four prospecting licences (PLs 929/2014, 9946/2014, 11034/2017 and 11050/2017.
"The timely manner in which the Government of Tanzania has addressed the new Mining Licence and new Prospecting Licence following the signing of the framework agreement with the government in April 2023, is a clear demonstration of the Tanzanian Government’s commitment to working with Evolution to support the development of Chilalo,” Hoskins added.
High-grade results
Final assay results have also been received from the company’s 5,440-metre, 44-hole RC drilling program), which identified high-grade mineralisation proximate to the existing mineral resource.
Three new zones of high-grade graphite have been confirmed in results from the final five holes:
Hole NRC 22-188 -
- 18 metres at 7.3% TGC from 18 metres; and
- 12 metres at 7.9% from 46 metres.
- 20 metres at 9.6% TGC from 74 metres; and
- 16 metres at 6.5% from 98 metres.
- 12 metres at 8.4% TGC from 14 metres; and
- 8 metres at 5.3% from 30 metres.
- 12 metres at 4.8% TGC from 14 metres; and
- 30 metres at 6.1% from 70 metres.
- 8 metres at 3.4% TGC from 14 metres.
The zone to the north of the E2 conductor, which has been tested with only two holes, has a strike length of 600 metres.
Two western zones have also been identified with very limited drilling. Holes NRC22-208 and 212 identified significant graphite mineralisation over a strike length of 1,500 metres, while NRC22-207 tested a conductor of 600 metres, with positive results.