Syrah Resources (ASX: SYR) is on track to meet its exploration target of 300 to 400 million tonnes at 11% total graphitic carbon and 0.3% vanadium having again intersected wide zones of high grade graphite and vanadium mineralisation in Mozambique.
The company's Balama Project once again has not disappointed with six more holes at Balama East delivering mineralisation from the start to the finish of the hole, as has been the case with the majority of previous holes drilled.
- 146.8 metres at 13.3% total graphitic carbon (NYSEMKT:TGC) and 0.43% vanadium from 3.75 metres, including 119.31 metres at 14.7% TGC and 0.48% vanadium; and
- 152.6 metres at 12.5% TGC and 0.33% vanadium from 2.6 metres, including 47.33 metres at 18.1% TGC and 0.58% vanadium.
All holes were drilled almost perpendicular to mineralisation indicating true widths of at least 95% of the intersection thickness.
Balama East is open in all directions, including at depth, with only small portions of the total Balama deposit having been drilled to date.
Significantly, Syrah is confident that it has delineated sufficient graphite to last in excess of a 100 year mine life.
High vanadium potential
The vanadium potential of Balama East has also been confirmed with most holes returning wide zones.
Noteworthy results include 47.3 metres at 0.58% vanadium from 2.6 metres, 67.4 metres at 0.53% vanadium from 20.6 metres, and 109 metres at 0.5% vanadium from 100 metres.
This is similar to the largest operating vanadium mine in the world - Xstrata's (LON: XTA) Rhovan operation, which has a Measured and Inferred resource of 72.29 million tonnes at 0.52% vanadium.
Drilling has ceased for this calendar year due to the wet season which has commenced in Mozambique.
The only drilling envisaged next year will be to close off the high grade areas at surface, which run from about 15% to over 20% total graphitic carbon.
This drilling will add tonnage to the high grade areas and close them off for mine planning purposes.
Balama West and Balama East will also require additional drilling to convert resources into reserves and for geotechnical drilling purposes.
An initial JORC Resource for Balama West is expected to be finalised by early January.
The samples for the remaining drill holes at Balama East are at the laboratory and Syrah anticipates announcing the remaining results by early January.
A JORC Resource for Balama East is slated for delivery in the March quarter of 2013.
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.