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Environmental approval for Mahenge

ASX junior Black Rock Mining (BKT) says government environmental approval for its Mahenge graphite project in Tanzania shows the country’s revised mining code is operational.
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DFS near for Black Rock’s graphite project in Tanzania

Staff reporter

The company said it had received an environmental impact assessment certificate which covered the three orebodies that underpin the project and which was valid for the proposed mine's lifecycle.

A prefeasibility study released in July 2017 outlined a 31-year mine producing 250,000 tonnes per annum over three phases, with a preproduction capex of US$90.1 million and a post-tax internal rate of return of 45.1%.

Black Rock said it was on track to complete a definitive feasibility study by the end of this month and would then apply for a mining licence.

It said the environmental permit was for a staged project, starting with 83,000tpa increasing up to 250,000tpa over five years.

Chief executive John de Vries said the award of the permit demonstrated the country's licensing approval processes were now working.

"We are now well positioned to advance through the remaining permitting process and be in position to commence financing and offtake in the near-term," he said.

The company raised A$3 million at 3.2c per share two weeks ago to further project development, marketing, permitting and general working capital.

It had A$1.78 million cash on hand at the end of June.

Its shares were unchanged in afternoon trade at 3.3c capitalising it around $14.6 million.