IMX Resources' flagship Chilalo Graphite Project is located within its Nachingwea property, a 5,400km² tenement area in south-east Tanzania.
The pre-feasibility study (PFS) for the project was completed in November 2015.
Overall investment to bring the project into production is estimated to be $74m. The estimated life of the mine is ten years, during which it will produce an average 69,000t of graphite concentrate a year.
IMX Resources announced a proposal for restructuring the company in December 2015, based on which a new ASX-listed company named NewCo will be established to own and develop the project. The transaction is expected to be completed by April 2016.
Geology and mineralisation
The project is located within the renowned Mozambique belt, which hosts graphite deposits such as Syrah Resources' Balamadeposit and Magnis Resources' Nachu project. The project will involve the development of the Shimba deposit.
Regional geology is comprised of late Proterozoic Mozambique mobile belt lithologies hosting mafic to felsic gneisses (aluminous rich sediments), which are interlayered with amphibolites (mafic-sourced material) and meta-sedimentary rocks.
Mineralisation is usually found within 100m of the surface, and is primarily hosted in felsic gneiss and amphibolites, and within high-purity marble horizons in rare quantities.
As of October 2015, the project was estimated to contain JORC-compliant combined indicated and inferred resources of 25.1Mt grading 6% TGC for 1.507Mt of contained graphite. Mining and processing at IMX Resources' flagship project
The Shimba deposit will be developed using open-pit mining integrating conventional 40t trucks, excavators and shovel operations.
Free-dig operations are proposed for the initial stages, while the remaining stages will involve conventional drill and blasttechniques.
The processing plant envisaged for the project will be equipped with a two-stage crushing circuit, a closed-circuit single-stage rod mill integrating a double-deck vibrating screen and a flotation conditioning tank.
It will also feature a floatation circuit integrating rougher, scavenger and primary and secondary cleaner flotation stages, a filter and dryer, as well as vibrating screens and bagging facilities. Infrastructure for the Tanzanian graphite project
Electrical power required for the project will be generated onsite by a 4MW power station integrating four 1MW diesel-powered gensets, one of which will serve as back-up. The process water for the project will be supplied from an onsite borewell.
Graphite concentrates from the project are proposed to be transported to the Mtwara Port by trucks using an existing 220km road. Sections of the road adjacent to the project site will be upgraded.
At the Mtwara Port, the product will be stored in leased storage facilities and shipped to industrial customers, primarily in China.
Other major infrastructure for the project will include a tailings storage facility (TSF) and waste dumps. The project benefits from existing infrastructure, including the Ntaka Hill camp with offices, mess hall, telecommunications and laboratory facilities, located approximately 20km from the project site. Off-take MoUs for graphite concentrate
"Overall investment to bring the project into production is estimated to be $74m."
In April 2015, IMX Resources signed an off-take memorandum of understanding (MoU) with Ningbo Foreign Trade (Ningbo), for a minimum of 25,000t of graphite concentrate a year for five years.
The company further signed a MoU with China Gold Group Investment and CN Docking Joint Investment and Development (CN Docking), a subsidiary of China National Building Material Group, in February 2016.
The MoU with the two companies marks the start of a formal negotiation process concerning project equity, financing, engineering, procurement and construction (EPC), and off-take. The negotiating period will extend to July 2016. Key players involved
The PFS was compiled by BatteryLimits, with inputs from ATC Williams for the TSF.
SA Global determined the mineral resource estimates and geological studies and SGS Australia was responsible for metallurgical test work, while Benchmark Minerals Intelligence conducted studies on the graphite market.
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