Evolution Energy Minerals Ltd (ASX:EV1) has begun the search for additional near-surface, high-grade graphite at its Chilalo Graphite Project in southeast Tanzania to further prove the potential scale of the prospect.
The initial 3,000-metre reverse circulation (RC) drilling program will target a number of the strongest electromagnetic (EM) conductors and will be followed by step-out drilling from the most promising targets.
Evolution had previously identified 33 kilometres of high and ultra-high conductance targets, in addition to the existing mineral resource, which it intends to drill-test in the 7,500-metre program.
Strong potential
Evolution managing director Phil Hoskins said: “We are looking forward to drill testing the expansive EM conductors in the broader Chilalo project area. Visual interpretations of the four trenches across the conductors indicate the strong potential for near-surface, high-grade graphite.
“Whilst we already have an 18-year mine life, any exploration success is expected to not only enhance Chilalo’s project economics but also support meaningful mine life extensions to enable a production expansion to meet the rapidly growing demand for battery anode materials and expandable/expanded graphite.”
Confident of success
Evolution is updating the definitive feasibility study (DFS) completed in 2020, which it expects to deliver before the end of the year.
That DFS identified a number of opportunities that could improve Chilalo’s economics, one of which was exploration upside.
Evolution is hoping that the discovery of any additional near-surface high-grade deposits will reduce mining operating costs compared to those in the DFS, by deferring the need to mine the existing deposit to the depth assumed in the DFS.
The company is confident that the drilling program will be a success but adds that Chilalo is a robust, long mine life project that does not require growing its mineral resource to obtain construction financing.