MADAGASCAR – Energizer Resources is going over the new feasibility study for its 100% owned Molo graphite project in the southern part of the country. The study considers an open pit mine and mill that will produce 53,017 tonnes of graphite concentrate per year over 26 years. Production could begin as early as 2017.
The project has a net present value at a 10% discounted cash flow of US$389.8 million. The internal rate of return is 31.2%, and the project has a payback period of 4.84 years. Energizer says the pre-production capital requirement is US$188.2 including a design allowance and contingency. On-site operating costs per tonne of concentrate beginning in year three are estimated to be US$353, plus there are transportation costs from the mine to seaport (US$182) and from the port to European customers (US$155). The sale price of a tonne of concentrate is estimated to be US$1,689.
The Molo deposit has proven reserves of 14.2 million tonnes grading 7.0% Cg and probable reserves of 8.4 million tonnes grading 7.04% Cg.
Energizer submitted the Molo environmental and social impact assessment to authorities at the end of January 2015, and a decision is anticipated this month.
Go to EnergizerResources.com for additional details of the project.