ASX-listed Walkabout Resources has provided an update of progress of the Lindi Jumbo graphite mine in Tanzania.
As part of the operational readiness planning for Lindi Jumbo, the initial 3-year mine plan was optimised to ensure that sufficient waste was being generated to supply the necessary lifts of the TSF walls, while at the same time generating sufficient medium grade (10 to 20% TGC) and high-grade (>20% TGC) ore stockpiles for blending, commissioning and ramp-up to steady state operations.
The new 3-year mine plan is a material improvement to the Life-of-Mine mine plan completed as part of the 2019 Definitive Feasibility Study (DFS) due to:
- The incorporation of the pre-strip and waste-rock mining that is underway to build the TSF and for which the costs are part of the capital expenditure.
- The shift of the entire first three years of mining to the north and closer to the processing plant resulting in potential cost savings due to shorter ore tramming distances.
- The inclusion of Inferred resources which are above the cut-off of 10% TGC and which occurs within the updated pit design (previously classified as waste in the DFS).
- A 39% reduction in strip ratio to the previous 3-year plan.
This has resulted in significantly less operational waste rock mining and potential cost savings (1.25 million tonnes or 42.2% less than the initial three years in the 2019 mine plan) The significant reduction in waste rock and total tonnes mined (see Table 1) has the potential to reduce the mining operating costs of the mine even at current increased per unit costs (due to inflation, increase fuel prices and ancillary mining costs).
EQUIPMENT DELIVERY AND MANUFACTURING
The Lindi Jumbo project development has been proceeding at full pace, made possible through the interim funding measures announced in February and March. The drawdown of the Senior Debt facility will not alter the tempo of the site-based construction activities and will primarily be used initially to refinance those interim funding measures. The timing of construction completion is most dependent on the arrival on site of the shipments that arrived in Dar es Salaam this week or are expected this weekend.
The pre-fabrication of approximately 600 tonnes of steelwork needed for the construction of the large drying and screening building has been completed and the first consignment containing the bulk of that steelwork has been delivered to the port in China and will be loaded onto the next bulk-vessel due to leave for Tanzania.
A further team of specialist tradesmen and engineers needed for the erection of the building frameworks are expected to arrive on site during June in preparation of the arrival of the next consignments from China.
SITE WORKS
Almost all of the mechanical equipment previously delivered to site has been erected. In recent weeks this has included all the floatation cells, the apron feeder, completion of the crushing circuit, the spiral classifiers and associated steelworks.
The TSF is now 68% complete with the rockfill at the retainer walls of the pre-deposition area at 82% completion. Clay capping of the retainer walls is progressing well and is at 37% completion. The lining of the predeposition area with HDPE lining is planned to commence by early July. More than 19,000 tonnes of high-grade ore are now available on the high-grade ore stockpile.
SENIOR DEBT FUNDING PROGRESS
There have been due-diligence activities undertaken in relation to the proposed Senior Debt Facility. These include technical, financial, legal, environmental and marketing due diligence. Since the signing of the Senior Debt Facility Term Sheet, Gemcorp has undertaken a site visit during which the Gemcorp team met with the key contractors and suppliers to Lindi Jumbo.
The results of due diligence will be presented to the Gemcorp Investment Committee and form part of the final approval decision process.
CEO of Walkabout Resources, Andrew Cunningham commented; “The arrival in Tanzania of the remaining mechanical equipment further de-risks the completion of the Lindi Jumbo construction. The interim funding measures have been critical in delivering this result. We are excited at the progress achieved to date and what is expected over the coming few months.”
