REG - Tirupati Graphite - Mozambique Operations Update

Tirupati GraphiteAnnouncement

10/07/2023 07:00

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RNS Number : 4198F  Tirupati Graphite PLC  10 July 2023

 

10 July 2023

Tirupati Graphite plc

('Tirupati', 'TG' or the 'Company')

 

Mozambique Operations Update

 

Tirupati Graphite plc (TGR.L, TGRHF.OTCQX), the specialist flake graphite and
graphene company developing sustainable new age materials, is pleased to
provide its first update on the Mozambique Flake Graphite assets,
post-acquisition.

 

Background

 

Following the completion on 3rd April 2023 of Tirupati's acquisition of the
Montepuez and Balama Central projects, both in Mozambique, from Battery
Minerals Limited ("BAT"), the Company has completed site visits and a
comprehensive review of all of the assets acquired. The projects contain
reserves and resources of more than 12 million tons of contained graphite,
which adds by a factor of 12 to the Company's global resource base. Together,
Montepuez and Balama Central are fully permitted for c.158,000 tons per annum
of flake graphite production. The Company also notes that assessments for
Vanadium Pentoxide content in the Montepuez project were made under the JORC
2012 regime and the following resources were found;

 

 

 Deposit, Type      Tonnage (millions)  Vanadium Pentoxide%  JORC Resource Category
 Elephant, Primary  18.4                0.24                 Inferred
 Buffalo, Primary   16.2                0.25                 Inferred

 

Activity since acquisition

 

Following its completion of a Definitive Feasibility Study ("DFS") in 2017,
BAT started construction of a 50,000 ton per annum production plant at
Montepuez. This construction included a 100-person accommodation camp,
significant Tailings Storage Facility ("TSF") work, as well as road and
culvert infrastructure being put in place at Montepuez. Acquisition of certain
long lead equipment was also initiated and a mobile crusher stands at the
site, with sufficient capacity to meet the ore feed for a 50,000 tons per
annum processing facility.

Detailed review of the DFS including of the proposed processing plant flow
sheet has been made by the Company with the following conclusions:

●      the process for sand extraction at the first stage of the
process can be used at the project;

●      the process flow sheet as per the DFS can be modified using the
technologies currently used by the Company and potentially reduce the graphite
concentrate circuit by three stages;

●      improvements can potentially be made in the dehydration, drying
and screening circuits; and

●      the mobile crusher is appropriate for use by the Company for the
first 50,000 ton per annum facility that it builds at Montepuez.

With a target to update the DFS incorporating the process and technological
improvements, 600kg of core and open pit samples have been sent for testing
and process optimisation.

The results from the pilot trials will be used to redesign and optimise the
processing flow sheet, enabling at Montepuez:

●   a reduction in the previous owner's capex estimates for the first
50,000tpa module;

●   a substantial reduction in operating costs;

●   lower carbon emissions;

●   reduced waste generation; and

●   the generation of initial samples of concentrate for market
development.

 

As Tirupati focuses on establishing a customer base, the samples from the
pilot trials will be used for customer qualification. It is expected that the
different composition and nature of the product basket across the Mozambique
assets, containing a majority medium to fine flake ore basket, will complement
the larger average flake product basket in Madagascar. The additional
diversity of supply and scale offered by the Montepuez and Balama Central
projects, with combined mining permits in place allowing for 158,000tpa of
production, is expected to contribute to potential new commercial avenues for
the Company and build on those established through production out of
Madagascar.

 

Alongside these pilot trials, an overall review of production plans, ancillary
facilities, and energy sources will also be carried out.

 

Vanadium

 

The project is also noted to have a Vanadium Mineral Resource of 34.6Mt @
0.25% for 86Kt of contained Vanadium Pentoxide (V2O5) (see BAT ASX
announcement 29th April 2019). The Company intends to further progress BAT's
studies for the extraction of Vanadium Pentoxide as a by-product from the
project's tailings as part of the aforementioned pilot trials it is
conducting. The Company notes that Vanadium Pentoxide is present in clay parts
of the tailings, suggesting its sand extraction technology beneficial and may
result in possible improved concentrations of Vanadium Pentoxide in the clay
as it collects in the TSF.

 

Social & Governance

 

Tirupati has commenced stakeholder engagement, including with the local
community and government officials, to support in the development of its
community support programme for the region to ensure it aligns with the
expectations and requirements of the local community, and in line with the
Company's sustainability policies.

 

The Company will continue to work closely with nominated local representatives
on selected community initiatives. As part of the Montepuez project's
community support and development efforts, the previous owner built a public
school in the community of Nkawene, 7km from the Montepuez project site. It
also installed five water bores and pumping stations, and renovated the local
health clinic. In addition to providing communications support for the
Company, local telecommunications contractors have upgraded digital mobile
phone and data networks for the benefit of local communities.

 

The Company intends to continue this support for local communities and build
on it further, in line with the Company's sustainability values and policies,
to provide further socio-economic improvements.

 

External

 

The Company also notes visits to Mozambique recently by the Japanese Prime
Minister, the Indian Minister of External Affairs, and the British Minister
for Development for Africa and the Commonwealth.  The increasing importance
of Critical Minerals for the global energy transition is being recognised and
greater emphasis is being placed by customers on diversifying their input
sources to support security of supply. In light of this, with improving
conditions in the country and the recent approval by the Mozambique Government
of the Private Investment Act to support private and foreign investment, the
Company looks forward to continuing work on these two recently acquired
world-class natural graphite projects to production.

 

Shishir Poddar, Executive Chairman of Tirupati Graphite, commented:

"Since we announced the completion of the highly strategic Mozambique
acquisition, we have quickly commenced work on the focus areas we outlined,
including drawing on our expertise and history of building leading flake
graphite projects in Madagascar to optimise these projects.

 

"The pilot trials that we have announced today will be crucial in enhancing
the economics of development plans of the Montepuez project, including
reducing costs and environmental impact as well as for business development
purposes. As a new operator in the country, we are also committed to engaging
meaningfully with local stakeholders and are beginning to have conversations
with the community to understand their needs and expectations.

 

"Our progress in the region comes at an important time for Mozambique, as
powerhouses such as the United States, India, and Japan seek to strengthen
relationships and investment, recognising the country's importance in the
global critical minerals supply chain. This provides a positive operating
environment for Tirupati, as we further strengthen our presence in the region
and pursue our ambition of providing 8% of global flake graphite demand by
2030."

 

 

ENDS

 

For further information, please visit https://www.tirupatigraphite.co.uk/
(https://www.tirupatigraphite.co.uk/) or contact:

 

 Tirupati Graphite Plc

 Puruvi Poddar - Chief of Corporate & Business Development        admin@tirupatigraphite.co.uk

                                                                  +44 (0) 20 39849894
 Optiva Securities Limited (Broker)

 Ben Maitland - Corporate Finance                                 +44 (0) 20 3034 2707

 Robert Emmet - Corporate Broking                                 +44 (0) 20 3981 4173

 FTI Consulting (Financial PR)                                    +44 (0) 20 3727 1000

 Ben Brewerton / Nick Hennis / Lucy Wigney                        tirupati@fticonsulting.com

 

About Tirupati Graphite

 

Tirupati Graphite Plc is a specialist flake graphite company and places a
special emphasis on "green" applications of flake graphite, including
renewable energy, energy efficiency, energy storage and thermal management and
is committed to ensuring its operations are sustainable as well.

 

The Company's operations include primary mining and processing in Madagascar,
where the Company operates two key projects, Sahamamy and Vatomina. With the
start of commercial production of its latest 18,000 tpa plant at Sahamamy in
March 2023, it now has an installed capacity of 30,000 tpa high-quality flake
graphite concentrate with up to 97% purity in Madagascar, planned to increase
to 84,000 tpa as per the Company's modular medium-term development plan.

 

On 3rd April 2023 the Company completed the acquisition of Suni Resources SA,
Mozambique, whose two main assets are (i) the Montepuez Project which holds
the mining licence over an area of 3,667 hectares with JORC 2012 defined
reserves & resources of almost 120 million tonnes; plus (ii) the Balama
Central Project, which has a mining license over 1,543 hectares with JORC 2012
defined mineral reserves and resources of 33 million tonnes. Both projects
have licenses permitting build out to an annual production of 100,000 and
58,000 tons of flake graphite respectively.

 

TG believes that the addition of these projects provides the Company with
sufficient resources to achieve its ambition of satisfying 8% of the estimated
global flake graphite demand - of around 5 million tons per annum - by 2030.

 

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