Triton Minerals Limited (ASX: TON) believes a Strategic Review of the Ancuabe Graphite Project has identified an opportunity to increase production capacity.
The Strategic Review is focused on bringing the company’s flagship project into production in the short term, at a small scale, for low capex and on a commercially viable basis.
The primary objective is to establish a Commercial Pilot Plant (CPP), which can be brought into production in the near term, which will produce commercially viable quantities of concentrate which will prove the viability of both the product and of the large-scale project (60ktpa) in the longer term.
Triton have engaged CPC Project Design to assist with the investigation into the development and construction the CPP at the Ancuabe Graphite Project. Following the initial highly pleasing results revealed in November, CPC Project Design and Triton have continued to further refine the Desktop Study.
This work has included investigations into the mass balance and a high level mine plan that contemplates initial mining of the higher grade T16 Pit at Ancuabe. Initial mining will focus on mining outcropping and near surface ore, allowing access to high grade material of approximately 7.2% TGC, compared to an average life of mine grade of 6.2% TGC as per the 2017 DFS mine plan.
The revised CPP Desktop Study now contemplates a 250,000 tpa plant capable of producing 15,000 to 17,000 tpa of graphite concentrate, which represents a 50 to 70% increase over the previously announced production of 10,000 tpa of graphite concentrate (26 November 2021).
Executive Director, Andrew Frazer, said the initial capital expenditure estimate of between US$32 million to $52 million remains unchanged from that previously announced, which is significantly less than the US$99 million estimate for the 60ktpa plant in the DFS.
Once again I am pleased to be able to report both rapid and positive results that the Triton Board and Management have been able to deliver. These results from the refined Desktop Study on the proposed CPP are overwhelmingly positive – a material increase in expected production of 50 to 70%, to 15,000 to 17,000 tpa of graphite concentrate for no additional capital expenditure than previously envisaged,” Mr Frazer said.
“We are already speaking to potential offtake partners for this additional potential production, in addition to the significant 10,000 tpa binding offtake agreement executed with YXGC.
“CY2022. This result is expected to positively impact discussions with western debt providers for the debt portion of the CPP financing, which we will commence in Q1 CY2022. We are then aiming to finalise a DFS for the CPP, to enable a final investment decision by Q2 CY2022. It is Triton’s goal to have the CPP into production within 18 months or July 2023 at the latest.
“The Board is committed to updating shareholders of the progress of the Strategic Review and the CPP desktop study.
“I want to personally thank recently appointed Chief Operating Officer, Adrian Costello for this hard work on the proposed CPP. Adrian brings a wealth of technical capabilities to Triton and will be invaluable as Triton moves towards first production from the CPP.”