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The licence is for a period of 10 years, which means extensions will have to be applied-for in the future given feasibility work outlined a 10-year life-of-mine – not to mention Graphex’s contention that the Shimba resource to be mined represents 1km out of 54km of strike identified by geophysics.
Graphex owns Chilalo 100% but has Chinese partners CNBN and China Gold said to be keen to purchase offtake and provided project finance.
Chilalo has been estimated to cost about $US74 million to build, with annual production of 69,000 tonnes of graphite modelled to generate average annual earnings of $47 million.
Chilalo’s prime product is expandable graphite, used in various applications including graphite foil (the heat shield in electronic devices), and flame retardant building materials.
Graphex started the December quarter with $A3.7 million cash.
Shares in the company were trading last week at 32c, capitalising Graphex at about $18 million.
