Appendix A : Project Description and Philosophy

Background and Process

This PFS reviews Volt Resources mining and processing plant to produce coarse flake graphite from its 100%-owned Bunyu Project located south east Tanzania (Figure A).

Figure A:  Location map for the Bunyu Graphite Project

Volt Tenement Map - Bunyu Graphite Project

 

The total resource (Measured, Indicated and Inferred) of 461Mt at 4.9% TGC has been estimated to JORC 2012 reporting guidelines for the combined Bunyu North (Bunyu 1) and Bunyu South (Bunyu 2 and 3) resource. Volt’s initial resource at Bunyu North & South was based on: 82 RC holes and 4,472m drilled; 10 DD holes and 535m drilled in 2015. This has been expanded substantially in 2016 (Table A).

Deposit RC DD Total
Bunyu North 15 1,776m 15 1,385m 30 3,161m
Bunyu South 43 4,183m 7 447m 50 4,631m
Total 58 5,959m 22 1,832m 80 7,791m

Table A: Drilling program for 2016

Figures B and C show layouts of the Bunyu North and Bunyu South areas, and Figures D, E, and F give typical cross sections through the Bunyu 1, 2 and 3 deposits highlighting the continuity between the mineralised units.

Figure B: Bunyu North Project Layout

Bunyu North

Figure C: Bunyu South Project Layout

Bunyu South

Figures D, E & F: Cross sections through Bunyu North and South deposits showing typical mineralised units and general topography

Namangale D

Namangale E

Namangale F

Mining will be by conventional open cut techniques undertaken by a contractor. Ore will be hauled to a ROM pad at the processing plant and waste will be stored in dumps at the mines (Figure G).

Figure G: Outline of ore movement from pit to market

Ore Movement from Pit to Market

Processing will be by well-proven crushing, grinding and flotation methods (Figure H). Ore will be fed to the processing plant at a nominal rate of 3.8Mt/y to produce a nominal life of mine average 170kt/y graphite  concentrate at a nominal 93% recovery rate averaging 95% TGC. The product will be filtered, dried, and bagged then trucked circa 150km to the port at Mtwara in south east Tanzania for shipping to market. Tailings will be stored in a nearby tailings dam on the mining lease.

The processing facility will be a fit-for-purpose plant that can process oxide, transition and fresh ore. Volt will operate the processing and power plant, and manage a mining contractor, product fleet transport and logistics functions.

Figure H: Outline of ore processing to produce final graphite concentrate

Ore processing to produce final graphite concentrate

Regulatory

The prospecting licences for the Bunyu Project were granted in 2015/16 and remain valid until 2019/20.  Under the Tanzanian Mining Act (2010), which is administered by the Ministry of Energy & Minerals, a Mining Licence (ML) or Special Mining Licence (SML) may be issued after the applicant has submitted:

  • a feasibility report;
  • an environmental certificate after approval of an Environmental and Social Impact Assessment (ESIA);
  • an Environmental Management Plan (EMP);
  • plans for local procurement of goods and services; and
  • plans for the employment and training of Tanzanians.
 

Environment, Social and Community Resources

The project has been registered with the Tanzanian government and a Rapid Social and Environmental Assessment Report (RAR) for the Bunyu graphite project has been conducted, with the objective being to form a basis for developing Terms of Reference for the ESIA. The RAR was prepared and submitted in early December 2016.  This will assist Volt in developing an effective environmental monitoring program.

During the ESIA, an EMP will be prepared to identify impacts of the project, and develop management plans to mitigate their effects. The plan will address impacts including relating to process plant location, dust suppression, water supply, recycle and management, waste management, sewage disposal and drainage systems, and weed management.

Further, the ESIA will address social issues including a comprehensive stakeholder engagement program. This includes national and local stakeholders, mine workers, and local community issues such as physical and economic displacement, the expected population influx, community health and safety, and cultural heritage impacts.

Under the prospecting licences granted for the Bunyu project, there will be a training program that ensures on-the-job training and employment opportunities for Tanzanian citizens.  Where an expatriate is employed, a localisation program will be developed to ensure a smooth transition to local employment.  All expatriates will require a working permit.