Gratomic says that the shipment of the final pieces of equipment has commenced – a custom drying, size classification and dewatering assembly – required for the Aukam processing plant which, once installed, will complete the mechanical system required to bring the plant into the commissioning phase.
The custom drier system departed the Port of Shenzen and is being shipped to Walvis Bay, Namibia with an estimated arrival to occur in September.
Once the three containers of equipment arrive at Walvis Bay, the equipment will be prepared and then trucked to the Aukam site.
Manhattan Engineering, out of Johannesburg, was engaged to complete the structural and civil engineering designs to complete the platforms and foundations required to install the final pieces of equipment at the Aukam site and submitted the final drawings.
During the shipping period, the Company will complete the requisite onsite preparations including installation of concrete foundations, conveyor screw installations, and upgrades of onsite electrical facilities to ensure quick installation and subsequent commissioning of the processing facility.
As per the Company’s news releases dated May 21, 2020 and May 25, 2020 confirming the Company’s commitment to the delivery of the first three purchase orders totalling 1,800 tonnes to TODAQ commencing in November 2020, the pending arrival and subsequent installation of the final pieces of the mill assembly confirms the Company’s commitment to meet this schedule.
“We are very excited to see the last pieces of equipment on their way as this will allow Gratomic’s Aukam Property to move into the commissioning phase before year’s end. I am also very confident and look forward to the steps ahead with TODAQ.
“I believe achieving these exciting milestones will further strengthen and build our business relations together as partners,” says President and CEO, Arno Brand.
Gratomic wishes to emphasize that no Preliminary Economic Analysis (“PEA”), Preliminary Feasibility Study or Feasibility Study has been completed to support any level of production.
In fact no mineral resources, let alone mineral reserves demonstrating economic viability and technical feasibility, have been delineated on the Aukam Property.
The Company appointed Dr. Ian Flint to complete a PEA on the Aukam processing plant. The study, its recommendations, and their subsequent implementation, will provide conclusions and recommendation at a PEA level of comfort relating to the scale up of the existing processing plant to a commercial scale processing facility that will provide the desired concentrate grades and production rates.
A preliminary economic assessment is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized.
The Company will deliver TODAQ’s Product to an onsite warehouse beginning in November 2020, to fill the first three purchase orders totalling 1800 tonnes.
The Company is not in a position to demonstrate or disclose any capital and/or operating costs that may be associated with the processing plant, nor the Company’s ability to fulfil its obligations to deliver the 1800 tonnes of graphite as required by the purchaser orders.
Gratomic wishes to emphasize that the supply of graphite pursuant to any off-take or supply agreement referred to in this news release is conditional on Gratomic being able to bring the Aukam project into a production phase and for any graphite being produced to meet certain technical and mineralization requirements.
Gratomic continues to move its business towards production and as part of its business plan, expects to obtain a National Instrument 43 – 101 Standards of Disclosure for Mineral Projects technical report to help it ascertain the economics of the Aukam project.
Risk factors
No mineral resources, let alone mineral reserves demonstrating economic viability and technical feasibility, have been delineated on the Aukam Property. The Company is not in a position to demonstrate or disclose any capital and/or operating costs that may be associated with the processing plant.
The Company advises that it has not based its production decision on even the existence of mineral resources let alone on a feasibility study of mineral reserves, demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit.
Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will begin as anticipated or at all or that anticipated production costs will be achieved.
Failure to commence production would have a material adverse impact on the Company’s ability to generate revenue and cash flow to fund operations. Failure to achieve the anticipated production costs would have a material adverse impact on the Company’s cash flow and future profitability.
SOURCE: Mining Review Africa
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