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BKT advances Mahenge graphite project, appoints engineering contractor

BKT advances Mahenge graphite project, appoints engineering contractor

Published on: | by Meagan Evans

This product is classified as ‘very high risk’ in nature due to its location and geopolitical situation of the region. FinFeed advises that extra caution should be taken when deciding whether to engage in this product, however if you are not sure whether it is suitable for you we suggest you seek independent financial advice.

Tanzanian graphite developer Black Rock Mining (ASX:BKT) this morning announced it had appointed CPC Project Design as the engineering contractor for the Definitive Feasibility Study (DFS) at its 100%-owned Mahenge Graphite Project.

CPC Project Design is a leading mid-tier Perth based engineering company with extensive graphite and Africa experience. The group was selected by BKT after a detailed tender process covering five bidders.

The DFS is scheduled for completion in the second half of 2018 with the engineering study commencing in early January. This will enable the company to meet its timeline of commencing production by late 2019. Yet the full completion and delivery of the study is subject to and conditional upon Tanzania putting in place its new mining code and regulations.

The scope of the study is for the first module of Ulanzi, Mahenge and associated infrastructure.

However it is an early stage of this company’s development and if considering this stock for your portfolio you should take all public information into account and seek professional financial advice.

BKT’s Executive Director and CEO John de Vries commented: “We are commencing work on delivering the Definitive Feasibility Study, having recommenced drilling, and now commencing the engineering component of the Study. Securing the services of CPC Project Design is important, as they bring highly valued experience given their involvement in Syrah’s Balama Project, a wealth of recent graphite and African experience, coupled to the can-do approach of a mid-tier firm.

“We are increasingly confident that we will see legislative clarification from the Tanzanian Government in the not too distant future, and are positioning the company to progress the Mahenge Project to deliver a Definitive Feasibility Study in the second half of CY2018.

“With our Mahenge Graphite Project having costs within the lowest quartile costs and importantly a premium high-grade product, we think we have the best undeveloped graphite project in the world, and remain committed to developing it.”

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