Highly successful March 2018 Quarter puts Battery Minerals on track for first shipment in Q1 2019
ASX Announcement 24 April 2018
HIGHLIGHTS
Montepuez Graphite Project
- Mining Licence granted in March 2018
- Montepuez commissioning on target for December 2018 Quarter; First shipments set for March 2019 Quarter
- Long lead-time items ordered
- Earthworks and construction of access roads underway
- Primary crusher has arrived at Montepuez
Offtake: over 80% of forecast production subject to binding offtake agreements
- In January 2018, three binding offtake agreements signed with Guangxing Electronic Materials (GEM), Keshou and Black Dragon for 10,000tpa each
Corporate
- $20m fund raising successfully completed in January 2018
- Board restructured in line with current corporate governance requirements
- Cash on hand at 23 April 2018 of $11.23m
Balama Central Graphite Project
- Scoping Study completed and announced on 1 March 2018
- Feasibility study expected to be completed in September 2018 Quarter
- Resource doubled following receipt of diamond drilling assays
Battery Minerals Limited (ASX: BAT) is pleased to report on what has been a highly successful March 2018 Quarter at its Montepuez Graphite Project in Mozambique.
The outstanding progress made on numerous fronts culminated in Battery Minerals securing a Mining Licence for Montepuez in late March 2018.
During the quarter, earthworks commenced. The Company also entered into contracts for long lead-time plant and equipment as well as contracts for the construction camp and road upgrades.
As a result of this progress, Montepuez remains on target for commissioning in the December 2018 Quarter and to export its first shipment of graphite concentrate in the March 2019 Quarter.
In January 2018, Battery Minerals announced it had signed three binding offtake agreements for an initial period of three years each. These contracts, which each cover 10,000tpa of graphite concentrate, are with graphite producer Qingdao Guangxing Electronic Materials Co. Ltd, Black Dragon and Keshou.
Battery Minerals now has 100% of forecast production for CY2019 and up to 82% of CY2020 and CY2021 production from Montepuez Stage 1 covered by binding offtake agreements.
A Scoping Study on its Balama Central Graphite Project (Balama Central) was released in March 2018. The Company is now proceeding with a Feasibility Study (FS) on Balama, which is due to be finalised in the September 2018 Quarter.
At the end of March 2018, the Company announced that following diamond drilling in December 2017, the Mineral Resources at Balama Central had doubled (see 29 March 2018 announcement for full details and competent person statement).
As at end of the March 2018 Quarter, the Company had cash and liquid assets of $13.3M.
Outstanding drilling results further strengthen economic outlook for Montepuez graphite project
High-grade, free-dig mineralisation intersected at surface, including zones of significant mineralisation outside the current mine plan
Highlights
- Latest drillingresults highlight theworld-class quality ofthe graphite mineralisation atMontepuez, where plantcommissioning is ontrack for November this year
- The highgrades, combined withthe free-dig natureof the material,will help underpin low production costs
- Project development proceeding to plan with Mining Licence granted, production covered by four binding sales contracts and long-lead items ordered
Battery Minerals Limited (ASX: BAT) is pleased to advise that new drilling results have highlighted the world-class quality of its Montepuez graphite project in Mozambique, with high-grade intersections of free-dig mineralisation from surface and some intersections recorded outside the current mine plan, providing scope for further increases in the graphite inventory at Montepuez.
The drilling programme, which was conducted at the Elephant deposit, comprised 240 holes for 4,968 metres drilled to refusal using blade RC aircore technique. The results include:
EL028A, 37 metres at 13.49% TGC from surface,
EL042A, 15 metres at 14.16% TGC from surface,
EL058A, 20 metres at 15.61%TGC from 2 metres,
EL078A, 24 metres at 16.07% TGC from surface,
EL137A, 21 metres at 16.7%TGC from 3 metres,
EL140A, 27 metres at 15.03% TGC from 3 metres and
EL165A, 16 metres at 15.78% TGC from surface
For full details on the Elephant deposit grade control programme, please see the intercepts set out in Appendix 2 – Significant drill hole intercept table and collar details set out in Appendix 3 – Elephant grade control drill hole collar table.
Battery Minerals Managing Director David Flanagan said Montepuez was making rapid progress on every level.
“With our Mining Licence now secured, production covered by four binding sales contracts and long- lead items ordered, we are well on track for plant commissioning in November this year,” Mr. Flanagan said.
“The projectis also meeting allour feasibility study forecasts, meaningit is setto be alow-cost producer of high-quality graphite for the lithium-ion battery industry.”
Additional assay results are expected to be received shortly from drilling at the Buffalo deposit at
Montepuez.
Mineral Resource Doubles at Balama Central Graphite Project in Mozambique
ASX Announcement 29 March 2018
Feasibility Study on Battery Minerals’ second graphite project on track for completion in August, 2018
Highlights
• Total Mineral Resources at Balama double to 32.9Mt at 10.2% TGC
• Indicated Mineral Resources almost triple to 26.6Mt at 10.3% TGC
• Balama feasibility study on track for completion by August 2018
Battery Minerals Limited (ASX: BAT) is pleased to advise that its strategy to develop a second graphite project in Mozambique has taken a major step forward with total Mineral Resources doubling to 32.9 million tonnes at 10.2 per cent TGC following 1,600m of diamond drilling.
As part of the Mineral Resource, Indicated Mineral Resources have almost tripled to 26.6Mt at 10.3 per cent TGC. This grade is up from 9.3 per cent in the previous Resource estimate.
The Mineral Resource was estimated by independent mining consultants; RPMGlobal Holdings Limited (“RPM”).
Battery Minerals Managing Director David Flanagan said the Mineral Resource increase was an outstanding result.
“With the Mining Licence now secured for our Montepuez project and the Resource inventory for Balama increased to such a huge extent, our strategy to become a major graphite supplier to the battery industry is well on track,” Mr Flanagan said.
Trek Signs Share Sale Agreement to Acquire 100% of Kroussou Project
ASX Announcement 28 March 2018
Completion anticipated in April 2018 Planning on track for
drilling commencement during Q2 2018
HIGHLIGHTS
- Trek has entered into a binding share sale agreement to acquire 100% of the Kroussou Lead/Zinc Project from Battery Minerals Limited
Project Contains ‐
- Strongly zinc and lead mineralised rocks at surface along tens of kilometres of strike
- Large zinc and lead soil anomalies
- Geophysical imagery suggests large, strong conductors potentially associated with known mineralisation and extensions to it along with new targets
- Drill targeting being finalised with drilling set to commence at the onset of the upcoming dry season (expected to commence in June)
Trek Metals Limited (TKM or Trek) is pleased to confirm it has executed a share sale agreement (Agreement) to acquire 100% of the Kroussou Project from TKM's JV partner, Battery Minerals Limited (ASX:BAT) (BAT), with completion anticipated in early April.
Trek has been progressing its exploration at the Kroussou Project over the past 12 months and is ready to commence its maiden exploration drilling programme during Q2 2018.
Trek's Managing Director Bradley Drabsch commented that “We are very excited to take control of this highly prospective project. Owning 100% provides flexibility in undertaking exploration activities as well as longer term strategic flexibility when considering options for maximising the Project’s value. Kroussou presents us a unique opportunity in a forgotten part of the world that has received precious little attention for its base metals potential in the past. We remain committed to the discovery of a genuine World Class mineralised system at Kroussou and, so far, we have all the ingredients present to do exactly that.
Financial Report 31 December 2017
ASX Announcement 28 March 2018
Principal Activities
The principal continuing activities of the Group comprised of
- completion of a definitive feasibility study of the Montepuez Graphite Mine in February 2017, value engineering study in October 2017 on the Montepuez Graphite Mine in Mozambique;
- building relationships with potential customers and entering into sales arrangements with customers;
- completion of a concept study on the Balama Graphite Project in October 2017 and commencing a feasibility study for delivery in mid 2018
Review of Operations
The Company has had another significant year as it continues to rapidly progress towards the development of its 100% owned Montepuez Graphite Project.
In February 2017, the Company released a definitive feasibility study (“DFS”) on the Montepuez Graphite Project (“Project” or (“Montepuez Project”) demonstrating the project to have extremely robust economics at an annual production rate of 100,000 tonnes of graphite concentrate per annum.
In March 2017, the company appointed David Flanagan as it Executive Chairman.
On the 18th October 2017, the Company announced the completion of a Value Engineering Study (“VES”) which showed that by adopting key changes to the assumptions and parametres applied in the DFS, the Montepuez Project could be developed on a staged production basis with even better economics than shown by the DFS. The VES found that under a 50,000 tonne per annum concentrate production scenario, the capital costs could be slashed from US$126m under the DFS to US$42m whilst the operating costs could be reduced from US$422/t to just US$337/t.
The Company entered into several binding offtake agreements in December 2017 and January 2018. In November 2017 successfully raised AU$20m in an oversubscribed equity capital raising to underpin the construction of the Montepuez project.
During 2017, the Company has also been progressing towards the development of its second graphite project, the Balama Graphite Project and in November 2017, begun a drilling program to support a definitive feasibility study.
The Company is pleased to report that the progress of the Montepuez Project is going extremely well and since the end of the 2017 year, the Company has undertaken an infill drilling program, entered into four binding offtake agreements, placed orders for all of the long lead plant items and recruited many of the key roles required to take the Project through construction and into production, which is now forecast to begin in the first quarter of 2019.
The Company’s longer term growth strategy is a staged development of the Montepuez and Balama projects in the next five years and grow production to 200,000 tonnes of graphite concentrate per annum.
