21 November 2014
PRE-CONSTRUCTION WORKS UPDATE
Highlights:
Pre-construction works commenced at the Balama Graphite Project to facilitate mine construction in 2015
Existing camp capacity being increased to accommodate anticipated staff increases
Light vehicle workshop and fuel station established
Installation of power lines and all transformers completed
Syrah was awarded the 2014 Best Social Corporate Responsibility company for its community development activities
Phase I of the resettlement plan has commenced and clearing of bush land has started to relocate local subsistence farmers
Tenders for other initial construction works will be issued early next year
INTRODUCTION
Syrah Resources Limited (ASX: SYR, Syrah or the Company) is pleased to provide an update regarding its Balama Graphite Project in Mozambique.
With the Definitive Feasibility Study currently underway, Syrah has now started pre-construction works at Balama in order to facilitate the expected commencement of mine construction in 2015.
ASX Code SYR
Current Corporate Structure
Ordinary Shares
Issued Shares: 164,135,076
Options
Exercisable at $0.22: 875,005
Exercisable at $2.17: 35,000
Exercisable at $2.86: 250,000
Exercisable at $3.83: 1,000,000
Exercisable at $5.46: 500,000
Exercisable at $6.31: 2,800,000
Major Shareholders
Directors 8.85% Basapa PL 8.60% HSBC Custody Nom Aus Ltd 6.77% Copper Strike Ltd 6.70% Merrill Lynch Aust Nom PL 6.55% Citicorp Nom PL 5.22% National Nom Ltd 5.04%
Board of Directors
Mr Jim Askew
Non-Executive Chairman
Mr Tolga Kumova
Managing Director
Mr Rhett Brans
Non-Executive Director
Mr Sam Riggall
Non-Executive Director
Mr José Manuel Caldeira
Non-Executive Director
Ms Melanie Leydin
Company Secretary
Syrah Resources Ltd (ABN 77 125 242 284). Level 9/356 Collins Street
Melbourne 3000 Australia Ph: 03 96707264
Key Project
Balama Graphite and Vanadium Project (Mozambique) Balama is one of the largest and highest grade flake graphite and vanadium projects globally.
www.syrahresources.com.au
CAMP EXTENSIONS
In anticipation of the increased staff at the Balama Project, the current capacity is being increased from 25 to 73 with completion expected by the end of January 2015. A light vehicle workshop and fuel station has also been established with a capacity of 27,000 litres.
Figure 1 - New accommodation for Balama staff (top) and canteen for local labourers (bottom)
Syrah Resources Ltd (ABN 77 125 242 284). Level 9/356 Collins Street
Melbourne 3000 Australia Ph: 03 96707264
figure 2- hlerior of lighl vehicle workshop (.lop) ond fuel slolion (bollom)
Syrah Resources Lld (ABN 77 125 242 284).Level9/356 Collins Slreel
Melbourne 3000 Australia Ph:03 96707264
POWER
Installation of a 33 kV overhead power line is complete and awaiting inspection by the government before connection to the main line. All transformers (500 kVA, 250 kVA and 50 kVA) have also been completed. Consultants have been engaged to complete a load survey of the 33kV line which will be followed by a full load study. In addition, as part of the DFS currently underway, a backup diesel power station is being planned to meet any shortfalls in the grid capacity.
Figure 3 - 500 kVa transformer (top left), 250 kVA transformer (top right),
50 kVA transformer (bottom left) and 33 kV overhead power line (bottom right)
Syrah Resources Ltd (ABN 77 125 242 284). Level 9/356 Collins Street
Melbourne 3000 Australia Ph: 03 96707264
COMMUNITY DEVELOPMENT
Through active and consistent engagement with the local community and Mozambique Government, Syrah has an excellent reputation and relationship with both stakeholders. Consequently, Syrah was recently awarded the "Best Social Corporate Responsibility" (SCR) company at provincial level.
Figure 4 - SCR award 2014 (left) and Country Manager Dinis Napido (right)
Syrah has commenced Phase I of the resettlement plan. The resettlement plan does not require housin g relocations. A number of small farming plots will need to be relocated. Syrah is committed to ensuring that this resettlement complies with both national legislation and international best practices (International Finance Corporation and World Bank principles and guidelines).
Accordingly, work has commenced on clearing 170 hectares of bush land for the relocation of local subsistence farmers. Approximately 12 hectares have been cleared and this will continue for the next 6 months.
Syrah Resources Ltd (ABN 77 125 242 284). Level 9/356 Collins Street
Melbourne 3000 Australia Ph: 03 96707264
Figure 5 - Cleared bushed land for the relocation of local subsistence farmers
Other initiatives that have been carried out to date include:
fencing of the Balama District Hospital and Doctors' residential area
opening of water boreholes in the villages of Maputo and Pirira
establishment of solar panel in schools in the villages of Ncuide, Ntete and Maputo which enabled more villagers to have access to education thus contributing to an increase in literacy rates
establishment of a solar panel in Ntete maternity hospital
provision of employment opportunities for local people (more than 70% of Syrah's positions are filled by locals).
Future initiatives include:
opening 3 more water boreholes
assisting a Women's Farming Association in Pirira
establishing 3 more solar panels to power water pumps
establishing English language classes for the local community.
Syrah Resources Ltd (ABN 77 125 242 284). Level 9/356 Collins Street
Melbourne 3000 Australia Ph: 03 96707264
FUTURE CONSTRUCTION DEVELOPMENTS
Syrah will be issuing tenders early next year for:
land clearing at the proposed pit sites
construction of run-of-mine pads
construction of a ~7 km access road
the detailed plant design.
Tolga Kumova Managing Director Syrah Resources Ltd
Office contact - +61 3 9670 7264
Mobile contact - +61 3 421 707 155
Email - [email protected]
About Syrah Resources
Syrah Resources (ASX code: SYR) is an Australian resource company that is rapidly progressing its flagship Balama Graphite and Vanadium Project in Mozambique to production. The Project currently hosts one of the largest graphite and vanadium resources in the world with an Australasian Joint Ore Reserves Committee (JORC) compliant resource of 1.15 Bt at 10.2% total graphitic carbon (TGC) and
0.23% V2O5. Balama is a 106 km2 granted mining licence located within the Cabo Delgado province in
the district of Namuno in northern Mozambique. The Project is approximately 260 km by road west of Pemba and is accessible by a sealed, main road, running directly from Pemba Airport. The Port of Nacala is approximately 460 km by road south east of the Project and is the deepest port in Southern Africa.
Syrah Resources Ltd (ABN 77 125 242 284). Level 9/356 Collins Street
Melbourne 3000 Australia Ph: 03 96707264