TIDMTGR
RNS Number : 4198F
Tirupati Graphite PLC
10 July 2023
10 July 2023
Tirupati Graphite plc
('Tirupati', 'TG' or the 'Company')
Mozambique Operations Update
Tirupati Graphite plc (TGR.L, TGRHF.OTCQX), the specialist flake
graphite and graphene company developing sustainable new age
materials, is pleased to provide its first update on the Mozambique
Flake Graphite assets, post-acquisition.
Background
Following the completion on 3rd April 2023 of Tirupati's
acquisition of the Montepuez and Balama Central projects, both in
Mozambique, from Battery Minerals Limited ("BAT"), the Company has
completed site visits and a comprehensive review of all of the
assets acquired. The projects contain reserves and resources of
more than 12 million tons of contained graphite, which adds by a
factor of 12 to the Company's global resource base. Together,
Montepuez and Balama Central are fully permitted for c.158,000 tons
per annum of flake graphite production. The Company also notes that
assessments for Vanadium Pentoxide content in the Montepuez project
were made under the JORC 2012 regime and the following resources
were found;
Deposit, Type Tonnage Vanadium Pentoxide% JORC Resource Category
(millions)
Elephant, Primary 18.4 0.24 Inferred
------------ -------------------- -----------------------
Buffalo, Primary 16.2 0.25 Inferred
------------ -------------------- -----------------------
Activity since acquisition
Following its completion of a Definitive Feasibility Study
("DFS") in 2017, BAT started construction of a 50,000 ton per annum
production plant at Montepuez. This construction included a
100-person accommodation camp, significant Tailings Storage
Facility ("TSF") work, as well as road and culvert infrastructure
being put in place at Montepuez. Acquisition of certain long lead
equipment was also initiated and a mobile crusher stands at the
site, with sufficient capacity to meet the ore feed for a 50,000
tons per annum processing facility.
Detailed review of the DFS including of the proposed processing
plant flow sheet has been made by the Company with the following
conclusions:
-- the process for sand extraction at the first stage of the
process can be used at the project;
-- the process flow sheet as per the DFS can be modified using
the technologies currently used by the Company and potentially
reduce the graphite concentrate circuit by three stages;
-- improvements can potentially be made in the dehydration, drying and screening circuits; and
-- the mobile crusher is appropriate for use by the Company for
the first 50,000 ton per annum facility that it builds at
Montepuez.
With a target to update the DFS incorporating the process and
technological improvements, 600kg of core and open pit samples have
been sent for testing and process optimisation.
The results from the pilot trials will be used to redesign and
optimise the processing flow sheet, enabling at Montepuez:
-- a reduction in the previous owner's capex estimates for the first 50,000tpa module;
-- a substantial reduction in operating costs;
-- lower carbon emissions;
-- reduced waste generation; and
-- the generation of initial samples of concentrate for market development.
As Tirupati focuses on establishing a customer base, the samples
from the pilot trials will be used for customer qualification. It
is expected that the different composition and nature of the
product basket across the Mozambique assets, containing a majority
medium to fine flake ore basket, will complement the larger average
flake product basket in Madagascar. The additional diversity of
supply and scale offered by the Montepuez and Balama Central
projects, with combined mining permits in place allowing for
158,000tpa of production, is expected to contribute to potential
new commercial avenues for the Company and build on those
established through production out of Madagascar.
Alongside these pilot trials, an overall review of production
plans, ancillary facilities, and energy sources will also be
carried out.
Vanadium
The project is also noted to have a Vanadium Mineral Resource of
34.6Mt @ 0.25% for 86Kt of contained Vanadium Pentoxide (V2O5) (see
BAT ASX announcement 29th April 2019). The Company intends to
further progress BAT's studies for the extraction of Vanadium
Pentoxide as a by-product from the project's tailings as part of
the aforementioned pilot trials it is conducting. The Company notes
that Vanadium Pentoxide is present in clay parts of the tailings,
suggesting its sand extraction technology beneficial and may result
in possible improved concentrations of Vanadium Pentoxide in the
clay as it collects in the TSF.
Social & Governance
Tirupati has commenced stakeholder engagement, including with
the local community and government officials, to support in the
development of its community support programme for the region to
ensure it aligns with the expectations and requirements of the
local community, and in line with the Company's sustainability
policies.
The Company will continue to work closely with nominated local
representatives on selected community initiatives. As part of the
Montepuez project's community support and development efforts, the
previous owner built a public school in the community of Nkawene,
7km from the Montepuez project site. It also installed five water
bores and pumping stations, and renovated the local health clinic.
In addition to providing communications support for the Company,
local telecommunications contractors have upgraded digital mobile
phone and data networks for the benefit of local communities.
The Company intends to continue this support for local
communities and build on it further, in line with the Company's
sustainability values and policies, to provide further
socio-economic improvements.
External
The Company also notes visits to Mozambique recently by the
Japanese Prime Minister, the Indian Minister of External Affairs,
and the British Minister for Development for Africa and the
Commonwealth. The increasing importance of Critical Minerals for
the global energy transition is being recognised and greater
emphasis is being placed by customers on diversifying their input
sources to support security of supply. In light of this, with
improving conditions in the country and the recent approval by the
Mozambique Government of the Private Investment Act to support
private and foreign investment, the Company looks forward to
continuing work on these two recently acquired world-class natural
graphite projects to production.
Shishir Poddar, Executive Chairman of Tirupati Graphite,
commented:
"Since we announced the completion of the highly strategic
Mozambique acquisition, we have quickly commenced work on the focus
areas we outlined, including drawing on our expertise and history
of building leading flake graphite projects in Madagascar to
optimise these projects.
"The pilot trials that we have announced today will be crucial
in enhancing the economics of development plans of the Montepuez
project, including reducing costs and environmental impact as well
as for business development purposes. As a new operator in the
country, we are also committed to engaging meaningfully with local
stakeholders and are beginning to have conversations with the
community to understand their needs and expectations.
"Our progress in the region comes at an important time for
Mozambique, as powerhouses such as the United States, India, and
Japan seek to strengthen relationships and investment, recognising
the country's importance in the global critical minerals supply
chain. This provides a positive operating environment for Tirupati,
as we further strengthen our presence in the region and pursue our
ambition of providing 8% of global flake graphite demand by
2030."
S
For further information, please visit
https://www.tirupatigraphite.co.uk/ or contact:
Tirupati Graphite Plc
Puruvi Poddar - Chief of Corporate & Business admin@tirupatigraphite.co.uk
Development +44 (0) 20 39849894
Optiva Securities Limited (Broker)
Ben Maitland - Corporate Finance +44 (0) 20 3034 2707
Robert Emmet - Corporate Broking +44 (0) 20 3981 4173
FTI Consulting (Financial PR) +44 (0) 20 3727 1000
Ben Brewerton / Nick Hennis / Lucy Wigney tirupati@fticonsulting.com
About Tirupati Graphite
Tirupati Graphite Plc is a specialist flake graphite company and
places a special emphasis on "green" applications of flake
graphite, including renewable energy, energy efficiency, energy
storage and thermal management and is committed to ensuring its
operations are sustainable as well.
The Company's operations include primary mining and processing
in Madagascar, where the Company operates two key projects,
Sahamamy and Vatomina. With the start of commercial production of
its latest 18,000 tpa plant at Sahamamy in March 2023, it now has
an installed capacity of 30,000 tpa high-quality flake graphite
concentrate with up to 97% purity in Madagascar, planned to
increase to 84,000 tpa as per the Company's modular medium-term
development plan.
On 3rd April 2023 the Company completed the acquisition of Suni
Resources SA, Mozambique, whose two main assets are (i) the
Montepuez Project which holds the mining licence over an area of
3,667 hectares with JORC 2012 defined reserves & resources of
almost 120 million tonnes; plus (ii) the Balama Central Project,
which has a mining license over 1,543 hectares with JORC 2012
defined mineral reserves and resources of 33 million tonnes. Both
projects have licenses permitting build out to an annual production
of 100,000 and 58,000 tons of flake graphite respectively.
TG believes that the addition of these projects provides the
Company with sufficient resources to achieve its ambition of
satisfying 8% of the estimated global flake graphite demand - of
around 5 million tons per annum - by 2030.
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