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Volt Resources continues to progress with its Bunyu graphite project in Tanzania, and the company has now released a feasibility study for the asset.
Volt Resources (ASX: VRC) released a feasibility study of its flagship Bunyu graphite project in Tanzania.
The main objective of the company during the first phase will be to establish the infrastructure and its market position in anticipation of an expansion that will come to the second stage.
The first stage is based on a flow rate of 400,000 tons per year, with the intention of producing an average of 23,700 tons of graphite per year.
According to a company press release, project development approvals and funding initiatives for the first phase are underway. and the first ore production is expected to take place 12 months after the start of development
The study provides for an average free-run operating cost of US $ 664 per tonne, the initial capital being estimated at 31.8 US $ million. The pre-tax NPV of the first stage is US $ 18.6 million with a discount of 10% and its pre-tax IRR of 21%
The first stage payback period is 4.4 years and the profit total before interest, taxes, depreciation is established at 93.6 million US dollars over a period of seven years.
Volt is finalizing the final drawdown agreements for the annual production of the first stage, and a final feasibility study for the second stage is planned.
Volt CEO, Trevor Matthews, discussed the completion of the feasibility study in a statement, explaining the company's decision to develop Bunyu through a two-step process . "The Phase 1 Feasibility Study is another milestone in Volt's project to become one of the top three global producers of natural flake graphite," he said. 2017 Volt has announced a clear path to turn the company into a globally important producer of significant quantities of high quality graphite products. It was decided that this fast track would be reached by developing the Bunyu project in two stages, "adds Matthews.
Volt's Tanzanian subsidiary, Volt Graphite Tanzania, also performed several tasks during the feasibility study. Social impact study, submission of two mining license applications and completion of a resettlement action plan.
Tuesday, July 31, at the close of the day, The price of Volt stock was stable at AU $ 0.021
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Disclosure of Securities: I, Olivia Da Silva, do not hold any direct interest in a company mentioned in this article.] Battery Metals Outlook Report 2018 “/>
