The ore reserves at Battery Minerals’ Montepuez graphite project, in Mozambique, have increased to 42.2-million tonnes at 9.3% total graphitic carbon (TGC) for 3.9-million tonnes of graphite.
This compares with the ore reserve estimate of 41.1-million tonnes at 8.8% TGC for 3.6-million tonnes of graphite published in January 2017.
MD David Flanagan said the increased ore reserve again demonstrated the financial and technical strengths of the project.
“We have a long mine life and ample scope to increase production beyond stage one.
“The remaining capital cost to bring Montepuez into production is just $39.5-million. We have the required environmental approvals, offtake agreements, a port allocation, a completed tailings dam wall and we have built a new mine village. This is a terrific project that is well advanced and on the way to cashflow,” Flanagan commented in a release issued on Tuesday.
Battery Minerals expects the project to generate earnings before interest, taxes, depreciation and amortisation of $300-million a year.