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MINING | Black Rock Mining
BLAC K ROC Back on track at the Mahenge Graphite Project in Tanzania
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CK M I N I NG
MINING | Black Rock Mining
In November 2017 ASX-listed Black Rock Mining decided to reactivate its definitive feasibility study (DFS) for its flagship Mahenge Graphite Project in Tanzania – the fourth largest contained graphite resource in the world. The decision to reactivate the DFS was based on the company’s growing confidence in the prospect of a resolution to Tanzania’s recent travails in the mining sector, as it attempts to amend its mining code. For Black Rock, the resumption of its DFS has prompted a barrage of movement at the Mahenge development, including the commencement of a drilling campaign and a bulk sampling programme, which has now been shipped to Canada in preparation for a second pilot plant run. Meanwhile, vital environmental and social impact assessments have been initiated along with the resettlement framework development. The DFS will deliver a precise engineering “We reactivated the DFS and commenced
study that will help the company raise finance
drilling with the objective to complete the
for the project, and de Vries is convinced
metallurgical drill out and extract a bulk
that it is in safe hands after handing CPC
sample before the wet season broke, which
Engineering the contract for the study.
we achieved, on schedule and on budget,” says chief executive officer and managing
CPC is a supremely experienced outfit within
director John de Vries.
the mining services industry and also holds
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the engineering contract for the comparable Balama graphite project in Mozambique,
The drill programme took place over
which is being advanced by Syrah Resources.
December and January and was conducted by a local group called MRCM Drilling, who
“With CPC on board, we have got what we
were able to complete the exercise before
think is the most current graphite CV on
the onset of the wet season, which was a
the planet and the experience needed to
major boon to Black Rock.
translate that CV into meaningful action on the ground.�
The upcoming second pilot plant run will
MINING | Black Rock Mining use samples taken from the December and January campaign and aims to validate the design and vendor equipment, stress test the plant and ensure Black Rock fully understands variability and can deliver at customer specification at all times.
A world first result Meanwhile, the company also recently announced some astonishing processing results from the preceding pilot plant run, as the company delivered a world first 99%+ purity graphite concentrate in a conventional flotation circuit at scale. “We took 200 kg of concentrate and reprocessed it through an additional polishing stage within a closed circuit operation and from that we were able to upgrade the concentrate from a purity grading from 97.5% to 99.5% with zero loss of graphite.� This result pushes the processed concentrate into the ultra grade bracket (99%), up from the premium grade (97.5%), and allows Black Rock to conduct meaningful discussions with potential customers having qualified its product in the pilot study. In addition to the industry-leading purity grade achieved in the pilot, de Vries is also pleased with the minimal flake degradation that occurred during the additional polishing, with 55% of the ultra grade concentrate remaining in the large or jumbo size fraction. The pilot plant was conducted at the Lakefield laboratory in Canada by SGS – the
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best in-class product certification company
The long-term fate of the Mahenge project is
according to de Vries - which adds another
dependent on the success of the first module,
layer of credibility to the results and an
as the cash flow generated from that phase
extra degree of clarity to discussions with
will contribute towards the construction of
customers in need of a regular, premium or
the following two phases under the crawl,
ultra grade concentrate.
walk, run strategy. Therefore, validation of the design through the second pilot plant
After the success of the first pilot plant run,
study is essential.
Black Rock is on track to proceed with the second pilot plant in Q3, which is going to
“The second pilot plant also lets us take
be even more revealing as it incorporates a
meaningful volumes of material to various
design laid out in the DFS.
vendors for testing and we can come back at that point with performance warranties from
“The second pilot plant is going test and
the vendors. It’s a pragmatic commercial
validate critical elements of that design
strategy as well.”
before we build it. We want to go modular in the field, which means we need a high degree
Working with Tanzania
of confidence the thing is going to work when
Furthermore, the miner has commenced
we turn it on.”
environmental and social risk assessments
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which form a vital part of the mining license
together to deliver that,” he proposes.
application to the Tanzanian government, which is proving to be a delicate matter.
“It’s about transparency. If you can be transparent, clear and articulate in what
The company’s CEO admits that the recent
you are trying to achieve and find a way to
shift in the stance of the authorities towards
enshrine that into a code of practise, I think
foreign mining firms has added further
that’s good for everybody and that is what we
difficulty to the application process, but de
are trying to do.”
Vries remains confident that the licence is still well within reach.
In order to demonstrate the company’s willingness to work closely with the Tanzanian
Black Rock is one of the first companies that
authorities and integrate into existing state
will comply with new mining bills that were
structures, Black Rock chose to ship the 530
signed into law by President John Magufuli
tonnes bulk sample of concentrate via rail
last year. The laws require the government to
from Ifakara to the port of Dar es Salaam,
own at least a 16% stake in mining projects.
ahead of its export to Canada.
“Let’s look at what government’s objectives
“That’s a very clear demonstration of our
are from the license and see if we can work
intention to engage with Tanzania, our
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“We reactivated the DFS and commenced drilling with the objective to complete the metallurgical drill out and extract a bulk sample before the wet season broke, which we achieved� John de Vries, CEO & MD
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intention to learn how to do things, and also
observed a growing number of questions
to roll our sleeves up and get on with the
around the ‘tipping point’ for the EV market.
job. If we are creating jobs, engaging with the existing systems, and not trying to duplicate
At what point does it make economic sense
or usurp anybody’s rights or obligations, it’s
for an internal combustion engine to be
not a bad position to work from.”
replaced either by a plug-in hybrid or by
The tipping point
and all-out battery vehicle? Black Rock’s CEO believes the combination of falling battery
The growing electric vehicle (EV) industry is
costs and diminishing supply bottlenecks in
an area of significant interest for Black Rock
lithium and cobalt production are bringing
due to the fact that every KWh battery used
the fabled tipping point ever closer.
to power EVs requires 1 kg of spheronised graphite. In recent months, de Vries has
“Add in some economies of scale and you can
MINING | Black Rock Mining
imagine how quickly the cost of a lithium-ion
the importance of which have been grimly
battery is going to drop and we are going to
underlined by the recent tragedy of the
rapidly transition to EVs.
Grenfell tower fire in London.
“Plus, if you consider how that ties in with
In the aftermath of the fire, a strong degree
autonomous vehicles, I think there is a
of pressure has been applied towards
perfect storm beginning to brew around level
building contractors to ensure materials are
5 autonomy vehicles and the role of an EV in
adequately flame-retardant, with expanded
that autonomy.”
graphite’s anti-flame propagation properties making it an essential material applied to
It’s not just the burgeoning autonomous and
building cladding.
EV markets that are uplifting the prospects of major graphite producers. There are also a
Black Rock is on track to publish its all-
plethora of expanded graphite applications,
important DFS for the Mahenge project by
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John de Vries - CEO & MD of Black Rock Mining around the third quarter of 2018, at which
pragmatic approach to risk management is
point it will be able to proceed with a detailed
giving Black Rock confidence that a pathway
front end engineering design (FEED). The DFS
to funding will emerge, says de Vries.
will also be the final document in the mining license application.
FEED is likely to be completed by the end of the year, and then the company has only
Once the license is approved, the company
a 12-month construction run left on the
will look to secure project finance. The
schedule before production at Mahenge
company is making solid progress with
begins in earnest in late 2019.
regards to reopening Tanzania and its
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Published by Anderson Murray Media Ltd
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