Battery Minerals Ltd.'s scoping study at its Balama Central graphite project in Mozambique estimated that the project has the potential to deliver strong operating cash flow over a long period.
The study pegged a 10-year mine life and annual production of 55,000 tonnes per annum of graphite flake concentrate, the company said March 1.
Capital expenditure is estimated at US$50.1 million and operating expenditure at US$372.05 per tonne. The payback period is expected to be under 1.5 years. The study used US$1,221 freight-on-board per tonne as the basket price.
The company will now move toward a feasibility study, including environmental and mining concession applications, which is expected to be completed by the middle of the year.
In mid-December 2017, Battery Minerals signed a three-year binding agreement to sell up to 11,000 tonnes of graphite concentrate per year to Urbix Resources LLC, starting in 2019.
