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  • Syrah Resources Intersects High Grade Coarse Flake Graphite At Balama  4 comments
    Jun 26, 2012 9:05 PM

    Syrah Resources (ASX: SYR) is delivering up higher value, high grade coarse flake graphite from its wholly owned Balama Project in Mozambique, with nine holes reporting intersections based on visual determinations.

    The company is heading towards a maiden resource that is expected to be substantial given the results to date. Initial resource calculation will begin after completion of a further seven holes.

    Syrah expects to be in a position to calculate a resource estimate after having completed planned hole G which will be finished within a month.

    This area will represent a strike extent of about 1.3 kilometres of the overall outcropping mineralisation extent of 7 kilometres.

    Of the nine holes drilled so far, all begin and end in graphite mineralisation. Demonstrating the potential size of Balama, hole nine was started about 200 metres to the north away from outcropping mineralisation and from the base of the mountain.

    This verifies earlier assumptions that the mineralisation extends under cover to the north.

    The graphite in all holes appears to be predominately coarse to very coarse in size, which is extremely promising as coarse flake graphite generally attracts higher sales prices.

    Syrah has begun drilling the tenth hole, which also starts in mineralisation.

    Importantly, based on visual inspection of the core and logging, the graphite appears to be similar to that shown in the trenches in that same area with greater than 12% total graphitic carbon.

    Expected news flow

    The drill core for the first hole has been sent to the laboratories for assaying and metallurgical testwork, with geochemical results expected in mid-July.

    Metallurgical testwork, planned to help with the design of the processing plant, will continue over the next six months.

    Scoping Study

    Syrah has begun discussions with consultants for the impending Scoping Study, which is scheduled for completion during 2012.

    Potential company maker

    So far Balama looks to be a potential company maker for Syrah. Besides the valuable high grade coarse flake graphite potential, Balama could potentially deliver the very valuable by-product, vanadium.

    Rock chip assays released earlier this month demonstrated economic grades of vanadium, with average grades from the 328 samples of 0.17% vanadium or 0.3% vanadium oxide, and some of the zones hosting substantial quantities of vanadium.

    Vanadium is primarily used as an alloy to strengthen steel additive and demand is expected to soar as a supply deficiency is forecast to set in as early as 2013.

    Progress at Balama has seen Syrah's share price soar more than 10 times what it was at the start of 2012 to now sit at around A$2.40 per share.

    Proactive Investors is a market leader in the investment news space, providing ASX "Small and Mid-cap" company news, research reports, StockTube videos and One2One Investor Forums.

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Comments (4)
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  • JanetHogan
    , contributor
    Comments (2) | Send Message
     
    Based on the size of the finds, does anyone have an estimate on where the share price will potentially go?
    29 Jun 2012, 05:34 PM Reply Like
  • cdchi1
    , contributor
    Comments (2) | Send Message
     
    Hi Janet

     

    There are 3 catalysts for potential price appreciation:

     

    1. Assays (soon) - minor impact
    2. Resource announcement (hopefully Sept/Oct) - medium impact
    3. Offtake partner (no idea about timing) - large impact

     

    While I expect assays will be well received by market, they are pretty much just a clarification of visuals already announced so not expecting too much, unless that supersede the visuals (ie the grade is better than the trench sampling)

     

    Resource shouldhave a significant impact as it will confirm imo that this is the biggest deposit in the world (by a fair margin)...though the initial resource is likely to be only a fracton of what it will eventually be.

     

    Getting an offtake partner is the BIG ticket item, especially if it can be structured without issuing shares to the partner. I would like to see them selling 10-20% of the project to a large partner for ALOT of money (more than its market cap). Getting a partner pretty much indicates to the market that this is not like the plethor of other graphite wannabes out there (though would think the current market cap should be telling them that already anyway).

     

    Good luck...feel free to msg me if want to discuss more.

     

    Cdchi1
    11 Jul 2012, 12:25 AM Reply Like
  • JanetHogan
    , contributor
    Comments (2) | Send Message
     
    Thanks for clarifying that...it seems the resource announcement is now scheduled for November. I'm wondering how fixed that is or will it keep getting put back? As an aside, the current SYR price seems to be copping a beating from traders probably because there are so few companies out there posting anything like the types of gains we've seen. But that said, you'd expect there would be more investors in it for the long term gains.
    1 Sep 2012, 01:11 AM Reply Like
  • cdchi1
    , contributor
    Comments (2) | Send Message
     
    I would hope it doesn't get pushed to far beyond November, though not to fussed if it does personally.

     

    Wasn't surprised by market response to the initial assays, hence why I said they would have a minor impact...infact thought it would get belted a lot more given what a bad day on the market it was when released. The bounce back on Monday was encouraging.

     

    I expect a little bit better reaction to the upcoming results, particularly hole 22 when reported.

     

    Wouldn't worry too much about short term price movements...just traders (as you said) and weak hands getting in and out.
    5 Sep 2012, 12:54 AM Reply Like
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