The Nachu project is situated in graphitic schist with associated dolomites and gneisses.

The majority of EM modelling and geological intercepts indicate open folded anticlines with various dips to fold limbs in each resource Block.

The graphite mineralization is mostly associated with the schist, and is metamorphic (meta- sedimentary) in origin.

The Nachu deposit comprises five mineralized areas, being Blocks B, D, F, F South Limb, and J.

These deposit cover a combined strike length of 5.5 km and an average plan width of up to 300 m for B,D,J, F South and 800 m for F (often comprising multiple mineralized horizons separated by barren or low grade horizons), to depths between 150 m and 250 m below surface.

The mineralization occurs at or near surface.

Mine design, optimisation and mine production scheduling was undertaken by Orelogy Consulting Pty Ltd, specialist mining consultants based in Perth, Western Australia. The life-of-mine strip ratio is estimated at 1.5:1. Mining is set to be undertaken by the relatively conventional open pit mining method of drill, blast, shovel and truck. Base mine planning involves the use of 90 tonne excavators and 40 tonne articulated trucks. However ramp construction design parameters allow for the use of larger 90 tonne trucks.

Designs and cutbacks have been designed to suit 100t excavators and 91t payload rigid dump trucks.

- A minimum mining width of 20m.
- Two way ramp width of 24m.
- One way ramp width of 14m
- Ramp gradient of 10%.

Contract mining is assumed and rates were sourced from a number of suitably qualified and experienced contracting groups. It was stipulated that all supporting infrastructure will be supplied and mobilised by the selected contractor.

The concentrator plant utilises crushing, grinding and flotation technology to produce 240 ktpa of concentrate at a grade of 98%Cg, at a maximum plant feed rate of 5Mtpa The concentrate will be transported via public roads to the port of Mtwara.

Metallurgical testing for the BFS centred on taking advantage of the size and quality of the graphite from the Nachu Project to generate high purity products using low cost milling and flotation operations. The metallurgical process that forms the basis of the processing plant design in the BFS consists of 1 rougher flotation step and 3 cleaner flotation stages with associated milling at each stage.

The absence of any chemical or thermal purification operations in generating high purity products will ensure products from Nachu will be competitive in the market place.

Three different high purity products are set to be produced at the Nachu Project site and these are targeted towards high growth downstream appli ........