Graphex Mining Ltd. on Aug. 28 reported 19% growth in the indicated and inferred resource for the Chilalo graphite project in Tanzania to 1.99 million tonnes of graphite contained in 20.1 Mt grading 9.9% total graphitic carbon, or TGC, compared to a February 2017 estimate.
Managing Director Phil Hoskins said the company expects an increase in ore reserves would significantly extend the mine life. A September 2018 pre-feasibility study estimated a mine life of about 6.3 years for a two-stage operation producing 58,000 tonnes of graphite on average for two years and 108,000 tonnes for 4.3 years afterward.
The latest update is based on results from 2,083 meters of infill drilling across 22 holes and Graphex Mining expects to update the ore reserve estimate as part of a definitive feasibility study set for completion in the fourth quarter.
The updated estimate includes a higher grade indicated resource of 1.08 Mt of graphite contained in 10.3 Mt grading 10.5% TGC, representing a 73% increase in contained graphite. Inferred resource under totaled 908,000 tonnes of graphite contained in 9.8 Mt grading 9.3% TGC.
Meanwhile, the low grade inferred resource stood at 1.68 Mt of graphite contained in 47.3 Mt grading 3.5% TGC. Combined with the high grade resource, the project's total indicated and inferred resource amounted to 3.67 Mt of graphite contained in 67.3 Mt grading 5.4% TGC.
Estimates for the high grade resource used a 5% TGC cutoff grade, with the low grade zone using a 2% TGC cut-off.
Data from a 22-hole, 2,083-meter infill diamond drilling program was used to update the resource estimate for Chilalo. The Australia-listed explorer expects a strong conversion of resources to ore reserves upon the completion of a definitive feasibility study in the fourth quarter this year.
