TRITON MINERALS | ASX ANNOUNCEMENT | 15 December 2017
Triton Minerals Limited (ASX: TON) (Triton or the Company) is pleased to announce its maiden Ore Reserve and the results of Definitive Feasibility Study (DFS) for the Ancuabe Graphite Project (Ancuabe or the Project) located in the Cabo Delgado province, Mozambique. The DFS confirms that Ancuabe is a high quality, long life, high margin graphite project.
The DFS was undertaken by independent experts with substantial experience in the graphite sector and resources projects in East Africa. The DFS was led by supervising engineer Lycopodium Minerals Pty Limited (Lycopodium), with the resources and mining studies undertaken by CSA Global Pty Limited (CSA), metallurgy by Independent Metallurgical Operations Pty Ltd (IMO), and water and tailings studies by Knight Piésold Pty Limited (Knight Piésold).
Maiden Ancuabe JORC Compliant Ore Reserve of 24.9Mt at 6.2% TGC supports the evaluation period1 of 27 years.
- Definitive Feasibility Study based on annual production of approximately 60,000 Tonnes Per Annum (tpa) of graphite concentrate over the evaluation period2 of 27 years. The DFS mine plan is based the Ore Reserve and less than 5% of the production is sourced from Inferred Mineral Resources that is mined to access the Ore Reserve.
- High margin project with average annual EBITDA over the evaluation period of US$43.6M (including ramp up) based on a basket price of US$1,435/t and average evaluation period operating costs excluding royalty of US$634/t (FCA Port of Pemba).
- Unleveraged pre-tax NPV3 of US$298M, unleveraged pre-tax internal rate of return 36.8% and near-term payback period of 3.8 years – ability to optimize through appropriate financing strategy.
- Located in a proven graphite region with existing transport infrastructure and supportive local and national governments.
- Triton Board has approved commencement of detailed engineering and early works subject to Mozambique Government approvals. Progression to construction is subject to completion of appropriate financing strategy.
- Triton now focused on optimisation, permitting processes, EPC engagement, financing and securing binding offtake agreements.
- Production planned to commence in second half 2019 subject to financing and board approvals.