CPC was selected from a panel of engineering firms on the basis of their expertise and experience in graphite processing and successful commissioning of projects
Evolution Energy awarded CPC the FEED contract. (Credit: Khusen Rustamov from Pixabay)
Evolution Energy Minerals (“Evolution” or the “Company”) (ASX: EV1, FSE: P77) is pleased to announce that it has awarded CPC the FEED contract for the processing plant and associated non-processing infrastructure for the Chilalo Graphite Project.
The scope of the FEED includes the evaluation of opportunities to improve plant design and, optimise and update estimated capital expenditure. CPC was selected from a panel of engineering firms on the basis of their expertise and experience in graphite processing and successful commissioning of projects, most notably, Syrah Resources Limited’s Balama Graphite Project in Mozambique.
CPC has an extensive in-house database on previous projects, scopes of work, equipment, schedules, costs and specifications, that ensures the efficient use of personnel and relevant data. CPC has completed a large number of bankable feasibility studies and achieved a successful and proven industry track record in executing
project design and construction developments that have been delivered on time and within budget.
Evolution Executive Director, Michael Bourguignon, commented: “The commencement of the FEED study is a significant milestone towards the realisation of the Chilalo Graphite Project. We are pleased to be partnering with CPC, a firm I have previously executed projects with. I worked closely with CPC in the development of
Syrah’s Balama Graphite Project and believe that, combined with my own experiences, their considerable insight and learnings will be invaluable to the development of our Chilalo Project.
“We remain firmly focused on bringing Chilalo into production. With a binding offtake agreement for our highvalue coarse flake graphite in place and continued engagement with potential financiers, we continue to target a final investment decision towards the end of this year. The appointment of CPC and commencement of the
FEED is central to delivering on that objective.”
The FEED is expected to commence immediately and is targeted for completion by September 2022.
The scope of the DFS remains unchanged from the DFS released in Q1 2020. The FEED will incorporate a series of DFS optimisations to enhance the project economics and also reduce the carbon footprint of the project.
The Company recently completed testwork which supports the removal of the tailings storage facility (TSF) and the dry stacking of tailings within the waste rock dump. This outcome necessitates the inclusion of a water storage dam which would be significantly smaller and therefore expected to require a reduced capital expenditure than the original TSF. Tailings dams represent an environmental risk that have taken on greater
significance in the wake of high-profile tailings dam failures in Brazil.
The financial impact of removing the TSF is a reduction in upfront capital expenditure to build and line the TSF and a reduction in ongoing sustaining capital in constructing lifts to the TSF wall. These positive financial impacts are partially offset by the capital costs required for a small water storage dam and thickening, filtration and centrifuging equipment.
Source: Company Press Release