Infrastructure Improvements to Complement Epanko Feasibility from Project to Port
HIGHLIGHTS:
? Construction of Kilombero Bridge commenced and power line upgrade study well advanced
? Potential for Epanko feasibility to benefit with bridge reducing construction time
? Further potential benefits with grid power extension to Epanko and power quality upgrades
Construction of a key piece of infrastructure and an advanced power line upgrade study has the potential to significantly enhance the feasibility of Kibaran Resources' Epanko Graphite Project in Tanzania.
Reduction in transport and energy costs are key items poised to further augment the robust economics of the Epanko development following the recent release of the updated Scoping Study that has estimated capital expenditure at A$56 million.
The Tanzanian Government has commenced construction of a 384-metre Kilombero River Bridge, which will provide residents and farmers in the Mahenge Township a direct connection to the port of the Dar es Salaam, the country's largest city.
The Mahenge town currently relies on ferry services, however these are largely unreliable with long travel times that are dependent on weather conditions and serviceability of ferries.
"The completion of the bridge will be one of several key milestones for the development of Epanko," said Executive Director of Projects Grant Pierce, who is based in Tanzania.
"It will substantially reduce the construction time for Epanko, therefore providing a positive boost to the feasibility study through the logistical improvement in the transport of the graphite concentrate from project to port."
Kibaran recently appointed GR Engineering Services Ltd (ASX: GNG) to carry out the feasibility and project evaluation study for Epanko through an exclusivity arrangement.
Mr Pierce added there was also scope for further reductions in the operating costs at Epanko through the rural electrification project, which includes the extension of the electricity line from the power grid directly to the project and a new substation at Ifakara to improve power quality and reliability, minimising Kibaran's reliance on self-generation of electricity.
"Power supply from the main electricity grid will be the main long term power source for the mine, cheaper than self-generation and will eliminate the need to transport diesel for generators."
The Scoping Study has estimated operating costs at AU$489 per tonne of graphite concentrate.
Completion of the bridge is anticipated by October 2015. Production is scheduled to commence at Epanko early 2016.
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About Kibaran Resources Limited:
Kibaran Resources Ltd. (ASX: KNL or "Kibaran") is an exploration company with highly prospective graphite and nickel projects located in Tanzania.
The Company's primary focus is on its 100%-owned Epanko deposit, located within the Mahenge Graphite Project. Epanko currently has an Indicated and Inferred Mineral Resource Estimate of 22.7Mt, grading 9.8% TGC, for 2.223Mt of contained graphite, defined in accordance with the JORC Code. This initial estimate only covers 20% of the project area. Metallurgy has found Epanko graphite to be large flake and expandable in nature.
Kibaran also has rights to the Merelani-Arusha Graphite Project, located in the north-east of Tanzania. Merelani-Arusha is also considered to be highly prospective for commercial graphite.
Graphite is regarded as a critical material for future global industrial growth, destined for industrial and technology applications including nuclear reactors, lithium-ion battery manufacturing and a source of graphene.
In addition, the Kagera Nickel Project remains underexplored and is located along strike of the Kabanga nickel deposit, owned be Xstrata, which is considered to be the largest undeveloped, high grade nickel sulphide deposit in the world
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Andrew Spinks, who is a Member of The Australasian Institute of Mining and Metallurgy included in a list promulgated by the ASX from time to time. Andrew Spinks is a director of Kibaran Resources Ltd. and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Andrew Spinks consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
