The Ancuabe Project is in the proven graphite region of Cabo Delgado in north eastern Mozambique. Compared to all other ASX listed graphite projects in East Africa, the Ancuabe project is located closest to existing infrastructure and an operating container port.
The project is located adjacent to the producing AMG Graphit Kropfmuhl (GK) graphite mine and nearby villages that provide a motivated local workforce.
The project is located 80kms by sealed road from an operating container port in Pemba with access to existing transport and power infrastructure and supportive local and national governments.
A Definitive Feasibility Study (DFS) (ASX December 2017) confirms Ancuabe is a high quality, long life, high margin graphite project and was underpinned by a Maiden JORC Compliant Ore Reserve of 24.9Mt at 6.2% TGC that supported the DFS evaluation period of 27 years.
The project is concentrated on developing two graphite mineral deposits T12 and T16. (location map showing on 3kms apart and other identified upside targets including T14, T15 and T17.)
Definitive Feasibility Study overview
The results of the Definitive Feasibility Study (DFS), completed in December 2017, puts the Company in a very strong position. The project DFS confirms Ancuabe is a high quality, high-margin, long life, graphite project.
Highlights of DFS outcomes includes:
- A Maiden Ancuabe JORC compliant Ore Reserve of 24.9Mt at 6.2% Total Graphite Concentrate (TGC) supports the evaluation period of 27 years.
- Total Indicated and Inferred is 46.1Mt at an average grade of 6.6% TGC for 3.04Mt of contained graphite.
- The DFS based on an annual production of approximately 60,000 tonnes per annum (tpa) of graphite concentrate over the evaluation period of 27 years.
- High margin project with annual average EBITDA over the evaluation period of US$43.6M (including ramp up) based on a basket price of US$1,435/t and average evaluation period operating costs (excluding royalty) of US$634/t (FCA Port of Pemba).
- Unleveraged pre-tax NPV of US$298m, unleveraged pre-tax internal rate of 36.8% and near-term payback period of 3.8years – with the ability to optimise through appropriate financing and EPC contracting strategy.
The Board has approved development of the project. We are now focused on achievement of the key project milestones and first production of graphite concetrate is anticipated 18 months following the commencement of construction is subject to financing.
Key project Milestones achieved following completion of DFS include:
- Acquisition of a 100% economic interest in the project
- Award of the Mining concession
- Successful pilot plant testing of approximately 8.5 tonnes of core from T12 and T16 has been completed with results as predicted.
- Binding offtake agreements signed with Tianshengda Graphite and Chenyang Graphite each for up to 16,000 tonnes of annual Ancuabe graphite concentration production. This equates to over 50% of annual production.
- Provisional environmental licence granted
- Resettlement action plan processes in final stages
- The Triton Board has approved the development of the Ancuabe Graphite Project
- MCC International Incorporation Limited is awarded the Engineering, Procurement and Construction contract for the mineral processing facility and other infrastructure at Ancuabe.
|2018 Target milestones||Timeline|
|Secure Ancuabe financing term sheets||Q4 2018 and Q1 2019|
|Award of mining concession, final environmental approvals and relevant construction approvals||Q4 2018|
|Construction workforce mobilisation||Q2 2019|
|MOU with Nicanda Hill joint venture partner||Q4 2018|
The Upulo (Ancuabe) project has significant upside potential with no geological restraints and multiple targets identified within the project area. Triton has only drilled a small section of the identified mineralised zone and there is upside potential from extensions of the existing T12 and T16 deposits and also from other identified targets (T12b, T13, T14, T15 and T17).