Two game-changing graphite discoveries in less than a month: Evolution Energy Minerals

Evolution Energy Minerals (ASX: EV1) has marked a second graphite discovery in less than three weeks at its Chilalo Graphite Project in Tanzania. The company says the recent discoveries have the potential to lower mining costs, increase production and expand the project’s current 17 year mine life. 

The 11-hole drilling program confirmed mineralisation over 1.1 km out of a potential 5 km strike length towards the east of Chilalo and north of the recently reported ‘Chilalo East’ discovery. Assays returned near-surface hits with ‘significant widths and grades’ including:

• 22m at 5.68% TGC from 80m

• 18m at 5.18% TGC from 16m

• 20m at 5.42% TGC from 80m

Total Graphitic Carbon (TGC) is the industry-standard measurement for graphite mineralisation. Generally, TGC grades of above 4% are considered good and anything above 8% is considered high-grade.

“The shallow depth, width, grade and close proximity of Chilalo E2 to the existing Chilalo mineral resource and the recently discovered Chilalo East deposit is significant for Evolution,” said Managing Director Phil Hoskins.

Growing a 20 million tonne resource

Evolution Energy completed an updated Definitive Feasibility Study (DFS) for Chilalo in May this year, which outlined:

• Mine life: 17 years

• Mineral resource: 20.0Mt at grades of 9.9%

• Average graphite concentrate production: 52,000 tonnes per annum

• Post-tax NPV: US$338 million

• Capital cost: US$120 million

The 20Mt resource takes place over a 2km strike length, neighbouring the two recent discoveries that consist of:

• Chilalo East: 3.6km of potential strike

• Chilalo E2: 5.0km of potential strike

Next steps

“Downhole electromagnetic surveys and follow-up drilling will be required as it is likely that there are more parallel graphite layers that were not hit by this drilling [program],” Evolution Energy said in a statement.

Further exploration and drilling will assist with resource modelling to support a resource upgrade and expand the scale of operations at Chilalo. 

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