Syrah Resources (ASX: SYR) has received further assays from diamond drilling at its wholly owned Balama Graphite Project in northern Mozambique that show wide intercepts of very high grade graphite and vanadium.
Balama is turning into an exceptional deposit by global standards, today's results confirm just how exceptional.
All holes began and ended in mineralisation except one.
Very high grade zones averaging greater than 20% total graphitic carbon and 0.33% vanadium were intersected within 5 metres of surface with widths from 58 to 110 metres.
The highest grades reported were 30.3% total graphitic carbon and 0.88% vanadium over 2 metres.
Exceptional results were returned in four of the five holes. Highlights include:
- 58 metres at 20% total graphitic carbon and 0.36% vanadium from 4.5 metres;
- 28.75 metres at 21.1% total graphitic carbon and 0.32% vanadium from 2.2 metres, and 71.7 metres at 21.9% total graphitic carbon and 0.48% vanadium from 42.8 metres;
- 79 metres at 20.4% total graphitic carbon and 0.42% vanadium from 15.4metres; and
- 58.95 metres at 20.7% total graphitic carbon and 0.32% vanadium from 8 metres.
All holes except one, which intercepted a 35 metre wide pegmatite near surface, began and ended in graphite and vanadium mineralisation.
Among highest graphite grades globally
These latest very high graphite grades are believed to be among the highest recorded globally.
To put this into perspective, Focus Graphite's (TSXV: FMS, OTCQX: FCSMF, FSE: FKC) Lac Knife deposit in Canada is said to be the highest grade flake graphite deposit in the world.
Lac Knife hosts a Measured, Indicated and Inferred resource of 8.1 million tonnes at 16.1% carbon.
In terms of vanadium, the largest producing vanadium deposit in the world is Xstrata's (LON: XTA) Rhovan deposit which hosts a Measured and Inferred resource of 72.29 million tonnes at 0.52% vanadium.
These drill assays now confirm that there are two very high grade graphite and vanadium zones at or near surface at Balama West.
The first is near the crest of Mount Nassilala where the original trenches were dug. The high grade graphite and vanadium mineralisation encountered in these trenches extends down dip and were also encountered in drill holes previously announced.
Based on both the trench assays and the drill core assays, this very high grade zone appears to average between 13% and 18% total graphitic carbon and 0.35% and 0.4% vanadium, depending on the cut-off grade used.
The second extremely high grade zone is located about 300 metres to the north on the lower slopes of Mount Nassilala.
This zone appears to be even higher grade than the zone to the south and averages over 20% total graphitic carbon and 0.35% to 0.45% vanadium.
This zone is open to the north, west and east. A further line of holes stepping 200 metres back to the north and west are planned to be drilled in the near future.
Syrah Resources has a "cracker" on its hands with Balama. It keeps getting better and better and better as drilling intensifies.
The latest very high graphite grades rank Balama among the highest grades recorded globally when compared to the current highest grade flake graphite deposit in the world, Focus Graphite's Lac Knife deposit in Canada.
La Knife hosts a Measured, Indicated and Inferred resource of 8.1 million tonnes at 16.1% carbon. By comparison Balama is averaging grades of above 20%, with grades as high as 30.3%.
The graphite flakes also appear to be predominately coarse to very coarse in size, which is extremely promising as coarse flake graphite generally attracts higher sales prices.
Today's impressive results bode well for the potential for the company to define a large maiden graphite Resource in November 2012.
Additional drilling results will be highly anticipated given the results to date.
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.
All holes began and ended in mineralisation except one. Superlatives are not adequate to describe the potential of Balama. Current share price of $2.28 looks completely inadequate for a deposit of this rank and potential quality and scale.
On current trends, Syrah looks to Proactive Investors to be a $3.00-$3.50 stock.
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