Graphite producer and natural graphite anode developer Volt Resources Ltd (ASX:VRC, OTC:VLTRF) is making progress on a stage one feasibility study update for its Bunyu Graphite Project in Tanzania and is expecting positive outcomes and robust economics.
Substantial progress
Since the initial announcement of the feasibility study update on August 29, 2022, Volt has made substantial progress towards its completion. While the company had initially projected an earlier completion date, it now anticipates releasing the updated feasibility study in early August 2023.
Volt has collaborated with Perth-based GR Engineering Services Limited (GRES), which has reviewed and coordinated the compilation of updated capital and operating cost estimates for Stage 1 of the project.
Additionally, Amity Mining Pty Ltd, an independent consultancy specialising in project and study management for mineral processing plants, has thoroughly examined the cost estimates, offering suggestions for improving the project's financial performance.
Cost reductions, life extension
Numerous adjustments have been pursued, including cost reductions in engineering, procurement, construction and management (EPCM), as well as power plant costs. Furthermore, the project's life has been extended and graphite pricing has been updated.
These modifications are expected to result in improved project economics compared to the 2018 Feasibility Study results. In line with these positive developments, Volt has already secured two binding offtake agreements for Bunyu Stage 1, bolstering the overall business case.
In addition to the financial aspects, Volt's feasibility study update has enabled the company to address various other crucial considerations. This includes evaluating environmental, social and governance (ESG) factors, regulatory requirements, marketing and sales strategies, financial analysis, as well as identifying critical project risks and opportunities.
One of the world’s largest
Bunyu Graphite Project is home to one of the world's largest graphite deposits, with an estimated 461 million tonnes at a grade of 4.9% total graphitic carbon (TGC) and a proven and probable ore reserve of 127 million tonnes at 4.4% TGC.
The Stage 1 development plan entails a mining and processing plant with an annual throughput rate of 400,000 tonnes of ore at a feed grade of 6.26% TGC, capable of producing an average of 23,700 tonnes per annum of graphite products.
While capital expenditure (capex) and operating expenditure (opex) figures have seen significant increases across the mining industry in recent years due to inflationary pressures, Volt expects its capex to remain below estimates for its peer group companies. This, coupled with the anticipated strong project economics, positions the Bunyu Graphite Project as a promising venture.
CEO and managing director Prashant Chintawar said: “We are very pleased to be able to inform the market that we anticipate releasing the updated study in early-August 2023.
“We are very grateful to our various expert consultants, whose hard work has been invaluable and we anticipate being able to deliver a positive result for investors.”