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() has received the results from a positive Independent Scoping Study which allows the company to advance the Nicanda Hill resource at the Balama North project in Mozambique.
Triton has now engaged the South African based Coastal and Environmental Services (CES) to prepare a fundamental Environmental Management and Impact Assessment for the Nicanda Hill resource where feasibility work is underway.
The engagement of CES for environmental and social impact studies is just the first phase of the feasibility work to be undertaken by Triton at the Nicanda Hill resource.
Brad Boyle managing director commented: “Triton is pleased to engage CES who are a professional team with direct experience with the Balama region and will provide fundamental assistance with environmental and social advisory services.
"The Company believes that with the help of CES Triton will be able to develop the Nicanda Hill resource into a world class graphite mine in an environmentally sustainable and socially responsible manner which will be of great benefit to Mozambique and its people.”
Triton is also in the final stages of the tendering process to engage parties to complete the process engineering and design and mine and transport infrastructure design work that will form the basis of a Definitive Feasibility Study which is estimated to be completed by the end of 2015.
Independent Scoping Study results
The Independent Scoping Study for the Nicanda Hill graphite resource would see the project deliver an NPV of US$1230 million (pre-tax) and an IRR of 137% (pre-tax).
The Study is based on an Indicated Resource using a base-case mining inventory of 51 million tonnes grading 12.4% Total Graphitic Carbon (TGC) for a contained 6.3 million tonnes of graphite.
The results are based upon a thirty year conceptual life of mine.
Annual throughput is based on 1.8 million tonnes per annum resulting in average annual production of 210000 tonnes of graphite concentrate.
Pre-production capital cost is estimated at US$110 million. Cash Operating Costs are estimated at US$338 a tonne and providing life of mine free cash flow of US$624 a tonne to Triton.
Production of premium quality flake graphite concentrates is planned to commence in 2017 with an initial life of mine of 30 years including a 1 year construction period.
Scoping Study Results in a nutshell
The key outcomes from the Optiro Scoping Study report are:
- Estimated initial capital cost US$110 million which includes contingencies;
- LOM free cash flow of US$624/t;
- Estimated average mine gate cost of production at US$250/t;
- Free on Board cost (FOB) Port of Pemba estimated average cost at US$315/t;
- Cash operating costs of US$338/t;
- Positive cash flow within 2 months of commission; and
- Payback period within approximately 10 months of commission.
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