Chilalo Project Advances: Siteworks Begin, New CEO Appointed, and Copper Prospect Found

Project Momentum Builds with Siteworks and Land Transfer

Evolution Energy Minerals (ASX: EV1) has marked a significant milestone in the development of its Chilalo Natural Flake Graphite Project in Tanzania by commencing siteworks during the December quarter. This progress follows the formal transfer of land to the company under the agreed Resettlement Action Plan, enabling the start of critical infrastructure preparations such as access road construction and plant site clearing. These early works lay the foundation for the anticipated Final Investment Decision (FID) targeted for 2025.

Leadership Strengthened with New CEO Appointment

The quarter also saw the appointment of George Donne as Chief Executive Officer, a seasoned mining executive with over two decades of experience spanning corporate finance, private equity, and operational roles in battery raw materials and base metals. Donne’s expertise in developing markets and sustainable mining practices is expected to steer Evolution through its next growth phase, including securing financing and advancing project development.

Exploration Expands with New Copper-Lead-Zinc Prospect

Adding to the company’s portfolio, Evolution identified the Chikundo prospect, a volcanic hosted massive sulphide (VHMS) copper-lead-zinc mineralisation zone located approximately 4 kilometers from the Chilalo plant site. Initial fieldwork revealed artisanal workings with visible copper mineralisation, prompting plans for geological mapping, soil sampling, and a Reverse Circulation drilling program. This discovery could diversify Evolution’s resource base beyond graphite, potentially enhancing the project's overall value.

Advancing Graphite Resources at Chilalo East

In parallel, Evolution is progressing a resource development program at Chilalo East, where a 5,000-meter drilling campaign previously identified thick, high-grade graphite mineralisation zones. The company believes that incorporating Chilalo East into the mine plan could improve operational efficiencies through a lower strip ratio, thereby reducing costs and extending the mine life. While this program is not expected to affect the timing of the FID, it underscores the potential for resource optimisation.

Community and Infrastructure Initiatives Support Project Viability

Evolution continues to invest in community and infrastructure development critical to Chilalo’s success. Collaborations with Tanzanian agencies include upgrading the public road between Ruangwa town and the project site and securing grid power connections for construction administration. The primary plant power supply will integrate gas and solar solutions, aligning with the company’s environmental, social, and governance (ESG) commitments.

Financial Position and Cost Discipline

Despite these advances, Evolution’s cash position remains modest at $1.16 million as of December 31, 2024. The company reported a net cash outflow from operating activities of $1.8 million for the quarter, reflecting ongoing exploration and evaluation expenditure. However, a recent cost review confirmed no material changes to the Updated Definitive Feasibility Study estimates, suggesting that project economics remain intact. Management is actively pursuing cost rationalisation and alternative funding options to sustain operations and support the upcoming FID.

Innovative Environmental Approach to Tailings Management

In a notable environmental initiative, Evolution is exploring a partnership with Pure New World Pty Ltd to convert dry tailings into building materials using a patented polymer and waste plastic process. This approach could reduce reliance on traditional tailings dams, lower environmental risks, and generate potential carbon credits, reinforcing the company’s commitment to sustainable mining practices.

As Evolution Energy Minerals advances the Chilalo project through critical development stages, the combination of strategic leadership, exploration success, and community engagement positions the company to unlock significant value in the coming year.