Total Graphite (LSE:TGR) said it is in the process of engaging consultants to update the 2017 DFS and VES for the Montepuez project, with the aim of revalidating project economics and assessing a potentially lower capital intensity, phased development strategy.
The specialist flake graphite company holds the Montepuez and Balama Central projects in northern Mozambique, which together contain over 13 million tons of contained graphite at an average grade above 8% TGC, and plans to commence similar feasibility workstreams for Balama Central later in the year.
"It is important for the overall development of the Group to continue progressing our significant, world-class assets in Mozambique to support large-scale offtake opportunities which currently exist into the energy transition sector," said Arun Somani, CEO.
Total Graphite notes the 2017 VES trimmed estimated pre-production capex to US$42.3 million from US$126 million, reduced opex to US$337/t from US$422/t, increased mined grade to 12% TGC from 8.8% and envisaged initial concentrate output of 45-50ktpa versus 100ktpa.
The company says existing on-site infrastructure, including a 100-person base camp, a mobile crusher, power generation units and ancillary items, will be inventoried and incorporated into the updated studies.
A site visit is planned in early May to review the condition of the site and evaluate safety ahead of recommencing onsite work, and the group will update the market as the studies progress.
