Economy FDI Infrastructure Mining Mozambique Natural Resources Uncategorized

Triton lifts graphite grade, ups resource confidence

Approximate reading time: 3 minutes

Triton Minerals (ASX:TON) has lifted the graphite grade and defined a Measured resource at the monster Nicanda Hill graphite-vanadium deposit in Mozambique.

The higher confidence Measured resource is estimated at 33 million tonnes at 12.3% total graphitic carbon (TGC) and 0.34% vanadium (V2O5) as part of a massive total Mineral Resource estimate of 1.4 billion tonnes at 11.1% TGC.

Nicanda Hill, part of the Balama North project is firmly ranked as the largest known high grade flake graphite-vanadium deposit.

The cashed up Triton with $23 million and no debt estimates that less than 20% of the total resource strike length has been converted to a measured resource.

triton minerals project map
Triton Minerals has upgraded the resource at Nicanda Hill graphite deposit

Not that it is needed now as the Measured resource provides the basis for the 10 year projected life of mine at Nicanda Hill, on the road to defining bankable proven and probable graphite ore reserves.

Triton can now focus on finding secure large concentrate off-take clients for its graphite with a long-term vision of diverse graphite uses including energy storage and other technologies.

Which is significant as it pushes the envelope in timelines: commencement of graphite concentrate production targeted for mid 2016 and starting “enhanced” graphite production in China at about the same time.

This will be captured in a Definitive Feasibility Study due for Nicanda Hill 100 in Q2 2016.

Apart from Nicanda Hill, Triton also has Ancuabe in its back pocket ranking as having some of the best flake graphite flotation characteristics in the world at premium large flake concentrate at 180-2,000µ/80-5mesh, >99%. This is suitable for battery-grade flake.

A focus on early cash-flow generation will be at Ancuabe and P66 concentrate boosted by China factory-generated revenue and benefitting from suitable hydro-electric grid power available immediately.

There is also a bitumen road to Nicanda Hill mine gate and the Ancuabe project is located only 60 kilometres from port.

Milestones ahead

There are plenty of them including at Nicanda Hill P66:

  • Drilling activities update – Q4 2015
  • Mineral Resource – Q4 2015
  • Mineral Reserves- Q2 2016

 

While at Nicanda Hill 100:

  • Resource re-classification – Q4 2015
  • Reserves targeted for – Q4 2015
  • Early works and access update – Q1 2016
  • EIA, DUAT, Mining License update – Q2 2016
  • Expanded DFS due for completion by – Q2 2016

 

At Ancuabe, milestones include:

  • Drilling activities update – Q4 2015
  • Mineral Resource – Q4 2015
  • EIA & DUAT update – Q1 2016
  • Advancement of strategic alliance with GK – Q1 2016
  • Mineral Reserves – Q2 2016

 

In China the YXGC JV milestones include:

  • Commence construction enhanced factory – Q4 2015
  • Commission factory – Q2 2016
  • Full production 10,000tpa – Q3 2016

 

Which would certainly take Triton along the path to its aim of becoming the world’s lowest cost and most diversified graphite product range.

Analysis

Share price drivers are numerous in months ahead as Triton drives to become a vertically integrated graphite company. Today’s resource upgrade plays nicely into the DFS underway, as well as seeking long term binding offtake with strategic partners while aiming to generate near term revenue streams from its JV and alliances (China & Mozambique).

Source: ProactiveInvestors

Advertisements

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.