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Syrah Resources Delivers Further Broad, High Grade Graphite Intersections From Balama

Syrah Resources (ASX: SYR) has hit more wide, high grade graphite intersections in drilling at its Balama Graphite Project in Mozambique, which included a higher grade zone of 196 metres at 16.9% total graphitic carbon and 0.23% vanadium.

Maiden Resources for both Balama West and Balama East are scheduled for before the end of 2012.

The remaining Balama West drill results, due for release in the next month, are now likely to be highly anticipated given the broad, high grade results already delivered to the market.

A diamond hole drilled 200 metres to the southwest of the very first drill hole at Balama West has intersected 317.5 metres, the entire length of the drill hole, at 13% total graphitic carbon and 0.17% vanadium.

The higher grade zone of 196 metres at 16.9% total graphitic carbon and 0.23% vanadium was intersected from 100 metres, and extends up-dip and outcrops in overlying trench T9.

Even more exceptional is within this higher grade zone is an intersection of 82 metres at 20.5% total graphitic carbon and 0.29% vanadium from 108 metres.

The diamond hole began and ended in coarse flake graphite mineralisation.

The exploration potential is vast at Balama, with Balama West and Balama East comprising a small portion of the overall project, most of which remains lightly explored.

The graphitic unit is also open to north and south, areas that are unexplored.

Syrah at the end of last month delivered the very first assays from maiden drilling on the project, which showed the average grade of the entire 287.5 metre length of the first hole was 10.1% total graphitic carbon and 0.12% vanadium.

The intercept included a higher grade zone of 103 metres at 15.9% total graphitic carbon and 0.24% vanadium from 67 metres.

Within this higher grade zone was an intersection of 60 metres at 19.9% total graphitic carbon and 0.3% vanadium from 84 metres.

Trenching results

Remaining assays for the Balama West trenches are also expected within the next month.

Visual estimates from trench T9 indicate that large thicknesses of high grade mineralisation were also encountered at surface.

This is important because it shows that on this section, as well as on the section with the first drill hole, thick, high grade mineralisation outcrops at surface and will be available for early mining with minimal waste material.

Balama East

Meanwhile, Syrah has completed a total of 4,971.5 metres, across 17 holes at Balama East.

At least six further holes are planned before completion of the Balama East drilling program.

The drill core from the prospect continues to show visually high grade graphite mineralisation from surface.

Next exploration steps

Based on previous exploration, including field mapping, Syrah considers it very likely that further high grade zones will be discovered near surface with further exploration.

A reverse circulation rig is due to arrive onsite in late September to scout drill to identify these areas.

Analysis

Syrah's Balama Project is proving early on its potential to play host to a very high grade graphite deposit on a global basis.

While it is still early days, this second round of assays build on the potential for the company to define a large maiden graphite Resource before the end of 2012.

Mineralisation is extensive, with only a small portion of the 7 kilometre strike length explored. This is evident in the majority of drill holes so far beginning and ending in graphite mineralisation, as well as the mineralisation extending for the entire length of most holes.

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