Epanko is now 38% larger at 128 million tonnes grading 7.4% for 9.5Mt of contained graphite compared to the last resource estimate that was prepared in 2017.

 

EcoGraf said the new resource was based on increased geological knowledge, extensive test work and an updated interpretation of the deposit that had been developed over the past six years.

 

It has also flagged further upside, saying a re-interpretation of surveys suggests there is 3km of undrilled strike at Epanko, and the deposit is still open at depth, with the deepest hole drilled encountering mineralisation at 200m.

 

EcoGraf will use the new resource as the basis for expansion studies, aimed at scaling up Epanko production significantly beyond the initial 60,000tpa design given increasing demand for graphite in the battery market.

 

A bankable feasibility study was completed in 2015, prior to Tanzania electing to re-write its mining law. 

 

The last update in 2017 outlined a US$90 million capital costs for stage one, and, based on pricing at the time, would generate annual earnings of $45 million. 

 

Benchmark Mineral Intelligence expects demand will increase more than 30% per annum over the next decade, and pricing has also climbed. 

 

EcoGraf expects to sign a key framework agreement with the Tanzanian government in the near term, setting commercial terms for the development. 

 

The company is also advancing plans for a downstream battery cathode plant at Kwinana, Western Australia.

 

The company had A$41 million in cash at end of 2022. 

 

EcoGraph shares have traded in a range of 20-65c over the past year and were up 5% today at 22.5c, valuing it at $101 million.