Magnis Energy Technologies Ltd (ASX:MNS, OTCQX:MNSEF) has made strong progress with key activities at the wholly owned Nachu Graphite Project in southeast Tanzania.
Over the last few months, there has been strong progress with the construction of the resettlement village with the overall completion rate now above 60% and on target for completion in November this year.
On-site, a storage water dam (SWD1) will be constructed early to ensure adequate water supply for the construction phase.
Meanwhile, Magnis anticipates releasing the results of its 2022 feasibility study by the end of this month.
“Major milestone”
Magnis chairman Frank Poullas said: “We are very excited with the progress across our Nachu Graphite Project.
“Planned site works are progressing well while construction of the resettlement village is on target to be completed in November.
“We are very proud of this eco-friendly village which will improve the lives of the local community once built.
“In addition, we anticipate releasing results from the 2022 feasibility study by the end of the month in a major milestone in the project’s development.”
Nachu Resettlement Eco-village
At Nachu Resettlement Eco-village, the following tasks were completed or progressed:
- construction of the display house;
- substructure for all the houses;
- plastering of internal and external walls;
- roof trusses; and
- construction of kitchens and water tanks.
Recently MP Dr Steve Lemono Kiruswa visited the site and was briefed by the site manager on the progress of the Nachu Project and inspected the Eco-village.
Site works
Magnis has received quotations from shortlisted contractors for the construction of a SWD1 at the site.
SWD1 is part of the overall site water management system and is being constructed early to ensure adequate water supply in addition to the borefield for construction needs.
A design contract is being finalised with a Tanzanian consultancy to complete the design of the Tailings Storage Facility (TSF) and submit the design for approval with the relevant Tanzanian Authorities.
Knight Piesold Consulting’s Johannesburg office completed the initial design for the project in 2016 and will continue to be engaged by Magnis to work with the Tanzanian consultancy and bring their wealth of international experience in tailings dam design to ensure the dam meets international design standards.
Traxys offtake
On December 20, 2021, Magnis signed an offtake agreement for 110,000 tonnes of high-grade graphite concentrate with Traxys Europe SA.
The agreement had several conditions precedent requiring completion by September 30, 2022.
Both Magnis and Traxys are committed to a long-term relationship and due to delays surrounding the 2022 feasibility study, both parties have agreed to moving the date for the conditions precedent to June quarter 2023.