IMX Resources confirms viability of Chilalo graphite project

THE BOURSE WHISPERER: IMX Resources (ASX: IXR) has reported the results of a high-level study into the feasibility of various development options for the company’s Chilalo graphite project in south-eastern Tanzania.

The study was carried out by Perth-based processing engineering consultancy group BatteryLimits, which reached the conclusion that Chilalo possesses criteria to become a successful graphite operation, including:

A high-grade mineral resource (Inferred Resource of 7.4 million tonnes at 10.7 per cent total graphitic carbon (TGC) for 792,000 tonnes of contained graphite for the Shimba deposit);

Excellent metallurgical characteristics, with initial testwork results showing a large proportion of high-value large and jumbo flake material and the capacity to produce a high quality concentrate from basic flotation;

Access to important existing infrastructure, including: commercial deep water port of Mtwara, located 220 kilometres from Chilalo, via a sealed and hard dirt road; IMX’s Ntaka Hill camp, with offices, messing, accommodation, core storage, telecommunications and a sample prep laboratory; water supply at site; regional power grid to be extended to project area during 2016; and

Good relationships with local communities and an established presence in the region through many years of exploration work conducted at the company’s Nachingwea property.

“The high-level study confirms that the Chilalo graphite project presents a near-term development opportunity and supports our decision to commence a pre-feasibility study focused on a smaller scale operation in the order of 25,000 to 50,000 tonnes per annum of graphite concentrate,” IMX CEO Phil Hoskins said in the company’s announcement to the Australian Securities Exchange.

“The positive study outcome, coupled with the recent MoU with China-Base Ningbo, has laid the foundations for a successful graphite project at Chilalo.

“With the funding now flowing from the Fig Tree JV plus the recently concluded capital raising, we are in a strong position to rapidly advance Chilalo.”