Kibaran Releases Bankable Feasibility Study for Epanko Graphite Project

Kibaran Resources Ltd. (ASX:KNL) released a bankable feasibility study for its Tanzania-based Epanko graphite project, noting that it confirms “the viability of a conventional open cut mine and conventional flotation processing plant.”
Highlights of the study include:

• Epanko technically and commercially viable with no identified impediments for a positive decision to mine
• Key BFS Results
  • Pre-tax NPV10 of US$197.4m
  • Pre-tax IRR of 41.2%
  • Capital Expenditure of US$77.5m
  • Annual EBITDA of US$33.6m for 15 years
  • Mine life of 25 years o Strip ratio 1:1 (LOM)
  • Maiden Proved and Probable Ore reserves of 10.9 Mt at 8.6% TGC
• Annual production of 40,000tpa of high grade graphite flake concentrate for first 15 years
• Mining licence granted with environmental approvals in place
• All plant, associated equipment and infrastructure designed to Australian standards
• Processing plant and associated infrastructure designed to accommodate an upgrade in production, in line with future increased global demand
• Initial production supported by existing offtake and sales agreements
• Debt financing discussions commenced

Andrew Spinks, managing director of Kibaran, commented:

Completion of the BFS is a significant milestone for our Company and shareholders. The study is based on a realistic development strategy and supported by strategic partnerships in European markets. The positive BFS result enables the Company to advance Epanko to production and in parallel further progress its second 100% owned graphite project at Merelani East and advance the strategic downstream value add opportunities we have announced to date.
The milestone places the company in an enviable position, as it will provide access to further strategic partnerships in the European, Japan and US markets. The emerging battery market will have a significant positive impact on ourfuture graphite sales, given our current sales agreements are solely based on the traditional refractory and expandable markets. The next few months is an exciting time as we deliver on our specific milestones for the broader development strategy for the Company.

Click here to read the full Kibaran Resources Ltd. (ASX:KNL) press release.