The company has received the final assays from the current drilling program at Balama East which paves the way for the delivery of an initial JORC Resource for the deposit in the June quarter of 2013.
All holes intercepted graphite and vanadium mineralisation from surface.
Highlights include 152.6 metres at 15% total graphitic carbon (NYSEMKT:TGC) and 0.4% V2O5 from surface; 248.8 metres at 11.2% TGC and 0.26% V2O5 from surface; 200.6 metres at 13% TGC and 0.37% V2O5 at surface; and 125.08 metres at 15.7% TGC and 0.41% V2O5 from surface.
The results show the presence of high grade zones such as 12.52 metres at 19.3% TGC and 0.39% V2O5 from 2.6 metres; 41.62 metres at 18% TGC and 0.41% V2O5 from 2.6 metres; 42 metres at 17.4% TGC and 0.41% V2O5 from 2.6 metres; and 51 metres at 17.6% TGC and 0.342% V2O5 from surface.
Mineralisation remains open in all directions and at depth at Balama East.
As can be seen from the results many of the holes delineated high grade graphite mineralisation starting immediately at surface or below very shallow surface cover.
Additionally, many of the holes ended in high grade mineralisation.
Most of the holes at Balama East were drilled to considerably shallower depths than Balama West to identify higher grade zones for early production.
Late last year, Syrah began sterilisation drilling to define the margins of the orebody.
Although, graphite mineralisation was still encountered well away from the outcropping graphite hills, the grade visually appeared to decline significantly.
One hole that was drilled about 400 metres from the hills reported an average grade of only 4.5% TGC from surface to the end of the hole.
Also, sterilisation drilling showed that the depth at which the graphite mineralisation is first encountered increases significantly away from the hills (>50m depth).
As a result, economic graphite mineralisation at Balama is believed to be confined to an area of no more than about 300 metres from the base of the hills.
This means that the plant and tailings dam can be situated near to the minesite with little risk of sterilising economic ore.
This bodes well for a relatively low production cost operation.
Balama is an extraordinary deposit on any measure.
Syrah recently delivered an impressive initial resource for the project, demonstrating the sheer massive size of the deposit that still has the potential to grow significantly.
The Resource well and truly exceeded the exploration target of 400 to 500 million tonnes at 10% TGC previously outlined for Balama West.
The global Inferred Resource for Balama West is 564 million tonnes at 9.8% TGC and 0.21% V205 at a 5% TGC cut off.
The contained graphite of the Balama deposit is expected to exceed the rest of the world's reserves of graphite as recorded by the USGS (77 million tonnes as at 2012).
Balama's vanadium resource also now exceeds that of the world's largest operating vanadium deposit, Xstrata's Rhovan in South Africa.
Syrah expects Balama to be one of the lowest cost producers of graphite in the world, including China.
Given that the independently prepared resource exceeded the exploration target for Balama West, the company is also confident of exceeding the exploration target for Balama East.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.