The Nicanda Hill Project is one of the world’s largest graphite deposits and a globally significant Vanadium deposit. The project is located approximately 240kms by road from Pemba port in the Cabo Delgado region in northern Mozambique.
The Nicanda Hill Project has a JORC Inferred and Indicated Mineral Resource of 1.43 billion tonnes at 11.1% TGC for 158.9 million tonnes of contained graphite (ASX 16 September 2016) and 1.44 billion tonnes at 0.29% V2O5 for 4.2 million tonnes of contained vanadium (ASX 30 October 2015).
A scoping study completed in November 2015 resulted in 1.8 million tonnes processing plant for 200,000 tonnes per annum of graphite concentrate production. Results of a scoping study (ASX 26 November2014) and DFS suggest an initial 30-year mine life, a 1.8Mtpa processing plant throughput and 200ktpa of graphite production
The financial outcomes of the scoping study were a pre-tax NPV of US$1.23 billion and an IRR of 137% (pre-tax) based on a US$110m pre-production capex. The life of mine opex was US$338/t opex with a basket price of US$985/t.
Metallurgical test work highlights that Nicanda Hill graphite is ideally suited to supply the rapidly growing lithium-ion battery market, and associated EV and energy storage markets, with predominately fine and small flake material.
CSA Global has been appointed to advance the technical understanding of the potential vanadium deposit.
We are now looking to leverage the significant work done to date in advancing value realisation options for the project and are currently investigating potential joint venture opportunities with the potential to provide a non-dilutive source of funding for the near-term development of Upulo (Ancuabe) project.
Cobra Plains is a globally significant graphite resource. The project comprises a JORC Compliant maiden-inferred Mineral Resource estimate (ASX 26 February 2014) of 103 Million Tonnes (Mt) at an average grade of 5.2%TGC, containing 5.7Mt of graphitic carbon.