Walkabout Resources Ltd (ASX:WKT) has provided a September quarter report outlining activities at its Lindi Jumbo Graphite Mine in Tanzania.
Summarising the quarter’s performance, Walkabout managing director and CEO Andrew Cunningham said: “The first quarter of ramp-up has demonstrated that the Lindi Jumbo Graphite Mine produces a sought after, high-quality graphite product; with demand exceeding our forecasted production for the remainder of the year.
“Our teams are working diligently to increase production, which will enable the realisation of full production capacity within the next couple of months.”
Mining operations
During the quarter, mining operations successfully maintained stockpile levels at around 40,000 tonnes with an average grade of 15.33% total graphite content (TGC).
Mining operations were primarily focused on maintaining RoM stockpiles at 35-40,000 tonnes of medium and high-grade ore; in addition to producing sufficient waste material for the continuous build of the tailings storage facility (TSF).
No blasts were conducted during the quarter, with the vast majority of the material still excavated from within the “free-dig” portions of the three-year mine plan area.
Mining of the Lindi Jumbo graphite deposit has been very predictable, with positive increases in both tonnes and grade compared to the DFS mineral resource block model.
This has resulted in higher-than-anticipated contained graphite being delivered to the RoM pad, and enabled the company’s targeted graphite output to be achieved with reduced ore mining, lowering the costs per tonne.
Walkabout says that these efficiencies will be reflected in updated Lindi Jumbo reserve and resource statements.
Graphite production
Production of saleable bagged graphite concentrate totalled 3,009 tonnes for the quarter as a production ramp-up continued. The company has now produced 3,349 tonnes of graphite concentrate since the first bag, through to the end of Q3.
The plant was operated at a lower feed rate (40%-70%) during the quarter to provide a stable throughput base to calibrate other sections of the processing plant. The current feed rate is 25% below nameplate capacity and will be steadily increased to reach nameplate output within the next couple of months.
Graphite recoveries were well above the forecast 71% for the period, ranging between 85-95%, resulting in higher graphite output (concentrate); even at lower feed rates. October recoveries have continued at an average of 94%.
The most significant limitation to production during the quarter was higher plant downtime largely caused by electrical disruptions caused by fugitive graphite dust emissions before remedial work was undertaken.
Walkabout notes that in August and after the September plant shutdown, average output exceeded 50 tonnes of graphite concentrate per day, and since the reporting period, daily production has reached 90 tonnes of bagged graphite concentrate, or around 80% of targeted production per day despite feed rates constraints.
The majority of the coarse flake material (>180 microns) exceeds 94% TGC in final concentrate.
With the processing team having successfully established continuity and stability in the concentrator section of the processing plant, the focus has now shifted to:
- optimising the grinding circuit - enhancing flake preservation and reducing ultra fines before concentrating the material;
- grade optimisation within the concentrator section, targeting an average grade for all flake sizes >94% TGC; and
- optimising screening efficiency to ensure final concentrate meets specifications for the four products produced (-80mesh, +80mesh, +50 mesh and +30mesh).
Walkabout expects this optimisation process to continue over the next quarter.
Sales figures
Port congestion at Dar es Salaam, combined with logistical delays, government inspections and sampling verifications, restricted export of production in June and July.
By the end of the quarter, Walkabout exported 13 containers, equating to 331 tonnes, primarily composed of small flake and unsorted coarse flake from the initial production at the Lindi Jumbo plant.
The average price realised during the quarter was $533 per tonne, reflecting lower grades compared to the overall order book. Shipments targeted seven end customers as pilot sales, confirming that product quality met lab sample standards.
In late September, government and port operators implemented measures to reduce shipping queues, which exceeded 50 ships, resulting in a 50% reduction in backlog.
Due to these logistical challenges, the majority of shipments are deferred to the fourth quarter, with over 2,200 tonnes scheduled for November export.
The company says that demand remains strong, with 2024 orders surpassing expected production, and final pricing aligns with confirmed shipping and contract terms. It expects to sell all fine flake production (-180 microns) outside China.