June 2018 Quarterly Activities Report
Strong progress on construction at Montepuez
Montepuez Graphite Project
Balama Central Graphite Project
Battery Minerals Limited (ASX: BAT) is pleased to report on what has been a highly successful June 2018 Quarter at its Montepuez Graphite Project in Mozambique
As previously advised, Battery Minerals secured a Mining Licence for Montepuez in late March 2018. This paved the way for construction activity to ramp up in the June 2018 Quarter.
As part of this ramp up, the Company made strong progress on the site earthworks and camp construction. It also entered into various contracts for long lead-time plant and equipment and developed a number of site roads. Subsequent payments and plant delivery to site will be subject to funding.
This progress means Battery Minerals is on track to export its first shipment of graphite concentrate within 12–15 months of project finance being finalized.
The project development timetable will ensure Battery Minerals is ideally positioned to capitalise on the strong demand which is forecast to flow from the surge in lithium battery production.
During the June 2018 Quarter, Battery Minerals also progressed its Balama Central Graphite Project (Balama Central), where it completed a Scoping Study in March 2018. As previously advised, the Company is now proceeding with a Feasibility Study (FS) on Balama, which is due to be finalised in the December 2018 Quarter.
As at end of the June 2018 Quarter, the Company had cash and liquid assets of $20.5M.
Resource increase at Montepuez Graphite Project
Battery Minerals Limited (ASX: BAT) is pleased to advise that its strategy to grow the inventory at its Montepuez Graphite Project in Mozambique is delivering results, with a 14 per cent increase in Mineral Resources at the Elephant deposit, taking the estimate to 76Mt at 7.3% TGC.
As part of the Mineral Resource update, the total Measured and Indicated Mineral Resource (at a 6% TGC cut-off) has seen the TGC grade increase from 8.9% in the December 2016 estimate to 9.3% TGC.
The total Mineral Resource, at a 2.5% TGC cut-off, has increased by 9.7Mt to 76.9Mt at 7.3% TGC grade. The Mineral Resource was estimated by independent mining consultants RPM Advisory Services Pty Ltd (“RPM”).
Furthermore, encouraging observations have been made at the newly discovered Warthog prospect. Warthog is located 1.5km South of Elephant and based on a previously reported intercept of 12m at 14.27% TGC from 1m down-hole in EL258A. Follow up drilling has confirmed geological alteration continues down dip and along strike for more than 500m. While assays from follow-up drilling are pending, Figure 4 illustrates an example of the large flake sizes observed. The Warthog prospect is open at depth and along strike.
Battery Minerals Managing Director David Flanagan said: “These results underpin our view that there is potential for substantial growth in the inventory, forecast production rates and mine life at Montepuez.
“We are confident that we will also continue to increase the run-of-mine grade, which would reduce costs and increase revenues due to the increased tonnages of concentrate we would produce.
“The recently-completed A$20 million fundraising was a strong show of support for our world class Montepuez Graphite Project. Battery Minerals is now engaged with a number of parties with an interest in participating in financing the balance of the development costs. The Company is in a strong financial position and will advise the market of continued progress on project finance in due course.”
Mineral Resource Summary Table– see Appendix 1 for full details
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