Black Rock Mining Limited (ASX: BKT), an exploration company focused on Tanzanian Graphite Projects from the metals and mining sector, has announced that Yantai Jinyuan Mining Machinery Ltd which is Chinese EPC partner of BKT has successfully replicated the work that was executed in China in SGS Lakeshore Laboratories. From 93% recovery, with a favourable flake size distribution, Yantai Jinyaun Mining Machinery was able to deliver 99%+ TGC concentrate at lab scale testing as part of the FEED (Front End Engineering Design (FEED).
The application of the Chinese IP optimized the circuit design as well as improved the flake distribution. During the process, the exceptional concentrate grades were also preserved.
Yantai intends to conduct a 20-tonne pilot plant examination to evaluate the optimized design flow sheet, once it delivers the ultimate flowsheet and metallurgical scheme. This flow sheet will then be reviewed and approved by CPC Engineering and Design that was responsible for completing the DFS at Mahenge.
During the operation of the pilot plant, potential investors were selected. Also, the new off-take partners were given opportunity for the plant performance review as well as perform further independent Due Diligence. The pilot plant operations are reportedly expected to begin by the end of March 2019.
Once the pilot plant successfully starts its operations, both Yantai Jinyuan Mining Machinery and Black Rock will be seeking to enter into an EPC contract. The contract, delivering infrastructure equipment and installation for the Mahenge Graphite Project, will be structured to deliver the outcomes wherein the fixed price bid is subject to normal rise and fall provisions. Also, the deal will be structured based on Operate Transfer model with transfer contingent on process performance warranty. Other than the US$20 million Vendor Bid, there will be an additional US$20 million in the form of external funding through sponsorship. Further, CPC Engineering and Design will be retained to manage the project delivery and compliance.
The announcement also highlighted the Bulk Spheronizing Trial, where around 700kg of sub #80 mesh material from the trial will proceed towards the commercial scale spheronizing trial with an objective to validate lab yields of 65% as well as to establish productivity parameters.
On 26 February 2019, the company announced that its wholly owned Tanzanian subsidiary, Mahenge Resources had received mining licenses ML 00668/2018 and ML 00669/2018 from Mining Commission of the Tanzanian Ministry of Minerals for the development of the Mahenge Graphite mine.
On 29 October 2018, the company signed its second offtake agreement with Qingdao Fujin Graphite company Ltd of Shandong province, for the natural flake graphite from the Mahenge Graphite mine. The first offtake agreement was with Heilongjiang Bohao Graphite, in China.
In the last six months, the stock has generated an outstanding return of 143.75%. Post the announcement, By the end of the trading session on 1 March 2019, the closing price of the stock was A$0.078, up by 4% as compared to previous trading day’s closing price. Today, the stock is trading flat at A$0.078 (As at 1:10 PM AEST, 4 March 2019). The company has a market capitalization of A$42 million and approximately 538.5 million outstanding shares.
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