EcoGraf announces 127% jump in resource estimate for Epanko graphite project

Hot on the heels of a drilling and trenching campaign that generated record-high assays, emerging graphite producer EcoGraf (ASX: EGR) has reported a substantial increase to the mineral resource estimate (MRE) for its Epanko project in Tanzania.

The new estimate sits at 290.8 million tonnes grading 7.2% total graphitic carbon (TGC) for 21.0Mt of contained graphite.

That represents a 127% jump on the previous MRE announced last March, which totalled 128.2Mt at 7.4% TGC for 9.48Mt of contained graphite.

It occurs over a 3.5 kilometre strike length and remains open along strike and down dip.

Extensive program

The updated estimate is based on the results of a 2023 drilling and trenching program that comprised a total 1835 metres of diamond drilling, 3,009m of reverse circulation work and 191m of trenching while adding a previously-untested 1.35km extension to the south of Epanko’s western zone of mineralisation in an area dubbed Mount Grafit.

The extension was drill tested for the first 950m and trench tested for the final 400m and is expected to support a phased expansion of Epanko from 73,000 tonnes per annum to 300,000tpa.

Drilling returned a series of high-grade intercepts including 43m at 20.8% TGC and 33m at 19.7% TGC from 30m.

A number of these intercepts are reported to have started at or near surface, demonstrating the presence of high-grade mineralisation within the oxide zone.

Drilling also confirmed a massive electromagnetic high as a contiguous graphitic unit, with a deposit width up to 210m providing the potential for long-term low strip ratios.

Long-life, high-quality project

EcoGraf said the updated MRE supports Epanko’s position as a long-life, high-quality natural flake graphite project, with extensive work already completed to establish a development-ready mine.

This includes confirmation of a US$105 million senior debt facility with Germany’s KfW IPEX-Bank and the completion of a bankable feasibility study to support the funding.

The study demonstrated “highly attractive metrics” such as a pre-tax net present value of US$348m, a 36% internal rate of return and average annual EBITDA (earnings before interest, taxation, depreciation and amortisation) of US$79m over an initial 10-year period.

EcoGraf has also received environmental approvals and is nearing approval of a new special mining licence to support a 300,000tpa expansion study.