AQSE-listed Marula Mining’s 2024 exploration budgets for the advancement and development of the company’s Kinusi copper mine and the Bagamoyo, Nyorinyori and NyoriGreen graphite projects, all located in Tanzania, have been approved and are forecast to be about $6.38-million collectively.

Funding of the exploration budget is proposed to be met through up to $2.5-million of funds under the company’s existing funding agreement with South African commodity, logistics and mining investment group through Q Global Commodities, and the balance funded from forecast free cashflow from the sale of lithium product from the Blesberg lithium and tantalum mine in South Africa in this year and the Kinusi copper mine.

The beginning of certain activities under the company’s exploration budget will be dependent on application of its forecast free cash flow to progress those activities.

Approval of the exploration budget and the associated schedules of exploration and development activities at each of the projects was approved following executive management meetings that took place in Nairobi in the fourth quarter of 2023 with all key stakeholders and the company’s independent geological consultants Geofields Tanzania.

Activities are to begin in the current quarter across all four of Marula’s copper and graphite projects in Tanzania.

The exploration programmes for these projects will be implemented by Geofields, other approved technical consultants and managed by recently appointed Marula East Africa Exploration head Collins Aseto, who will report to chairperson Richard Lloyd and CEO Jason Brewer.

Of the total $6.38-million exploration budget, 38% ($2.44-million) has been allocated to work at the Nyorinyori and NyoriGreen graphite projects, 32% ($2.04-million) at the Kinusi copper mine and 30% ($1.9-million) at the rest for the Bagamoyo graphite project.

At Nyorinyori and NyoriGreen graphite projects, the budget has been approved to be applied to meet the costs of the proposed Phase II programme of exploration activities and additional work which will include the exploration and development activities.

At Kinusi, the funds will be used to meet the costs of the previously announced Phase 2 programme of exploration activities and further work

Bagamoyo’s budget will be used to meet the costs of the previously announced Phase 2 programme of exploration activities, including optimisation work on the selected mining licences, additional exploration and development activities.

“With the approval of the $6.38-million exploration budget for our Tanzanian projects, we are committed to accelerating our progress and their development in 2024 so we can deliver on our strategy to return value to our shareholders.

“Following the executive management, key stakeholder and independent geological consultant meetings we had in Nairobi late last year, it was agreed that our exploration work will consist of trenching work, sampling, geological and geophysics surveys and resource definition drilling that will be supported by additional mine planning, metallurgical test work and processing optimisation studies and financial analysis,” says Brewer.

“I am also pleased to share that a portion of our budget has been allocated towards fulfilling our social commitments to the communities near our projects. By improving the roads, upgrading accommodations at the local community girls school and allocating funds to a number of community-based initiatives, we are demonstrating that not only are we a battery metals mining and development company based in Africa, but that we are committed to helping to develop the communities in and around the areas in which we operate,” he adds.