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Walkabout Resources reveals updated graphite project DFS, shares up

The project is estimated to produce US$1.4 billion of revenue over its 24-year mine life.
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The previously low development capital cost has lowered further to US$27.8 million

Walkabout Resources Ltd (ASX:WKT) has incorporated the recent Ore Reserve upgrade into the updated definitive feasibility study (DFS) for its Lindi Jumo Graphite Project in Tanzania.

The mine life has increased 20% to 24 years and the project’s post-tax net present valuation (NPV) has increased 9.4% to US$197 million.

The construction schedule is dependent upon adequate pre-production funding being secured.

The current schedule has not been modified on the basis that commissioning can be realised 9 to 12 months after project-start funding has been received.

READ: Walkabout Resources increases graphite reserve grade to 17.9%, highest-grade mineable reserve in East Africa

Walkabout’s executive director Allan Mulligan said: “We are delighted with the results of the DFS which demonstrate that the extraordinary Lindi Jumbo project continues to deliver compelling economics in spite of conservative sales assumptions.

“We have a high degree of confidence in the revised cost estimates which are derived from actual engineering drawings and negotiated contract prices.

“This mine has been designed to withstand potential start-up and ongoing risks.

“It continues to show outstanding economics with a payback period of less than two years. These factors make the Project attractive to potential funding partners and investors.”

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