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Walkabout Resources Ltd To Commence Drilling At Lindi Jumbo Graphite Project

Walkabout Resources Ltd (ASX:WKT) has successfully completed the Level 1 Integrated Study on its Lindi Jumbo Graphite Project in Tanzania.

The board has resolved that due to encouraging technical and financial data, project development will be accelerated.

A modest reverse circulation and diamond drill program will commence this week.

Among other objectives, the drill program will aim to increase resource definition through infill holes and increase the overall resource.

The drill program will provide data to upgrade the current study to a definitive feasibility study allowing for final environmental and mining licence applications to commence.

Finally, an 800 kilogram bulk sample from Lindi has been delivered for test work prior to plant design and graphite concentrate has been despatched to the U.S. for specialist test work.

Drill program details

The company will commence a drill program this week designed to achieve a number of objectives which include:

- A partial resource upgrade, through infill drilling from Inferred to Indicated and Measured;
- An increase of the extent of the Inferred Resource;
- Geotechnical information to finalise tailings storage facility and waste rock dump design;
- Geotechnical information to finalise mining pit slope designs;
- Hydrological information; and
- Other required geological and technical data for plant design and study.

This data will help facilitate:

- Submission of the final Environmental Impact Assessment;
- Commencement of negotiations with local land stakeholders;
- The upgrade of the Level 1 Integrated Study (Scoping Study) to that of Level 3 Integrated Study (Definitive Feasibility Study - Non Bankable); and
- The finalisation of studies that will allow final environmental and mining licences application to commence.

Lindi Jumbo Graphite Project

The company has a 70% interest in a total exploration area of 325 square kilometres in southeast Tanzania.

Walkabout is fast-tracking the project development of Lindi Jumbo to commence a surface mining and processing operation at the site.

Recent test work at Lindi produced a super jumbo, high margin graphite concentrate containing up to 25.7% super jumbo flakes and grades up to 98.85% total graphitic content.

These verified results place the project in a high class of revenue per tonne of saleable concentrate.

Test work in progress

Final marketable concentrate material has been despatched to the U.S. for specialist product test work.

These results are expected during July or August and further test work has been planned for a specialist laboratory in Europe.

An 800 kilogram bulk sample of material has been delivered to a specialist metallurgical laboratory in Harare, Zimbabwe.

This is to allow the pilot scale processing of Walkabout's proprietary flowsheet prior to commencement of modular process plant design.

Analysis

Lindi continues to demonstrate that it is a high grade flake graphite project capable of being financially robust.

The nature of the Integrated Study does not allow Walkabout to make forward-looking statements or announce financial forecasts but the board's decision to not only progress, but accelerate the project's development is telling of its economic potential.

Recent metallurgical results position the Lindi concentrate as a premium natural flake product suitable for the expandable graphite market and for sphericalisation for the lucrative lithium-ion battery market.

Potential basket revenues using independent price forecasts combined with estimated industry low operating costs indicate that the potential margins achievable for the Lindi Jumbo product will be amongst the highest of the ASX peer group of aspiring graphite producers.

With drilling to begin this week and metallurgical and bulk sampling test work underway, news flow regarding Lindi progress is expected.

The development of the Lindi project is in line with Walkabout's new dual lithium-graphite focus.

News flow on the company's recent move into the lithium sector is expected with regard to:

- Updates on first pass mapping, trenching and sampling on the Tanzanian lithium licenses; and
- Updates on the Namibian lithium license applications.

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