EV1 Advances Chikundo Drilling and Chilalo Graphite Production Target

Chikundo Copper Project Poised for Drilling Despite Delays

Evolution Energy Minerals (ASX:EV1) recently completed a site visit to its Chikundo Copper Project in Tanzania, revealing strong surface mineralisation indicators such as extensive gossan development, visible malachite and azurite, and alteration consistent with volcanic-hosted massive sulphide (VHMS) systems. These observations underpin the company's confidence as it prepares to commence drilling in June 2026, aiming to confirm the high-grade copper potential beneath the surface.

However, the drilling timeline has been impacted by a delay in assay results from ALS Laboratories in Johannesburg, now expected in mid-May due to laboratory backlog. The company is advancing drill planning and logistics in parallel to avoid further delays once results arrive. Meanwhile, operational readiness is progressing with the appointment of an experienced Tanzanian Senior Geologist, Casmir Kiwale, and the tendering of drilling contracts aligned with local content requirements.

This drilling campaign follows a substantial soil sampling program completed earlier in the year, where over 1,500 samples were collected and are undergoing quality assurance checks. The extensive groundwork aims to delineate a district-scale VHMS copper system, building on the geological model that suggests fluid pathways and mineralising controls typical of this deposit type major soil sampling completion.

Chilalo Graphite Project Transitions from Study to Execution

The Chilalo Graphite Project, one of the world’s largest and highest-quality flake graphite developments, is moving decisively towards production. With a completed definitive feasibility study (DFS) and front-end engineering design (FEED), EV1 is adopting a modular development strategy designed to de-risk execution, accelerate first production, and provide financing flexibility.

The company has defined a clear pathway with staged development gates, including a scoping study tender ready to be issued and engagement with multiple EPCM contractors underway. Board approval is targeted for early June 2026 to commence the formal tender process. First graphite concentrate production is targeted for October 2027, with a nine-month ramp-up to nameplate capacity of 5,000 tonnes per annum by August 2028.

This strategy aligns with the company’s funding position, bolstered by a recent oversubscribed $4.18 million rights issue, which supports early works such as site establishment, road construction, and environmental monitoring. The modular approach reflects a pragmatic response to market and financing conditions, aiming to meet timelines agreed with the Tanzanian government rights issue update.

Graphite Market Dynamics and Government Relations

EV1 remains optimistic about the medium-term graphite market, citing forecasts from S&P IQ Global that anticipate a structural supply deficit of approximately 550,000 tonnes by 2035. Tanzania's role as a critical supply source to China, accounting for 80–95% of its graphite imports, further underscores Chilalo's strategic importance in a tightening global market.

On the regulatory front, EV1 has engaged constructively with the Tanzanian Minister for Minerals and the Mining Commission. While discussions regarding a Default Notice remain ongoing, the company was notably excluded from recent licence revocations, suggesting a relatively stable operating environment. EV1 has provided detailed documentation evidencing its historical investment to support its position.

Community Investment and Social Responsibility

In line with its corporate social responsibility commitments, EV1’s subsidiary Kudu Graphite (84% owned) is nearing completion of a maternity ward in the Nanguragai township. The final step involves drilling a borehole for water supply, to be funded by Kudu and executed by the local government. This project highlights the company's efforts to foster sustainable community relationships alongside resource development.