Drilling aims to upgrade the near surface portion of the existing JORC Resource of 14.9 million tonnes at 10.5% TGC (total graphitic carbon) for 1,560,000 tonne of contained graphite to an Indicated/Measured Resource category.
Notably, all intercepts contain high grade flake graphite with the consistency of the results confirming a significant portion of graphite mineralisation is at surface.
Mineralisation remains open in all directions.
The reverse circulation program focussed on shallow, highly-weathered soft graphite mineralisation.
Work is now underway and completion is expected mid-July. Subject to this upgrade, the Epanko Economic Scoping Study will then be released.
Results for the remaining 29 drill holes are expected to be released in the next few weeks.
The reverse circulation drill program had focussed on shallow, highly-weathered soft graphite mineralisation, as the liberation and preservation of large and jumbo flake size is paramount in maximising sales revenue.
Results from the second group of assays from reverse circulation drilling at Epanko include:
- 34 metres at 8.2% TGC from surface including 21 metres at 9.6% TGC in MHRC037;
- 96 metres at 6.2% TGC from surface including 18 metres at 10.4% TGC and 32 metres at 7.2% TGC in MHRC038; and
- 41 metres at 7.8% TGC from surface including 7 metres at 10.4% TGC, 4 metres at 9.8% TGC and 9 metres at 8.4% TGC in MHRC039.
This follows on the first group of drill assays including:
- 56 metres at 8.8% TGC from surface including 25 metres at 10% TGC in MHRC035; and
- 78 metres at 8.0% TGC from surface including 42 metres at 10.2% TGC in MHRC036.
The Epanko deposit has attracted a binding offtake and sales partnership agreement after signing a binding offtake agreement with a European graphite trader in late December 2013.
This agreement to purchase 10,000 tonnes of flake graphite concentrate per year, over a 5 plus 5 year period, was advanced with the support of a development bank with the view for potential debt funding for the future development of the deposit.
Graphite market update - price increases likely
Mid-term pricing for premium quality large flake graphite is forecast to substantially increase, according to recent future price modelling by Toronto-based, independent research firm Stormcrow Capital.
Stormcrow has forecast pricing for Jumbo flake to increase to US$6,170 per tonne in 20201, a near three-fold jump on 2013 prices.
Kibaran has the one of the highest flake distribution amongst its peers, and supported by the binding offtake and sales agreement that was secured with a European Graphite Trader.
The second group of drilling assay results continue to show a significant portion of graphite mineralisation is at surface.
Significantly, the mineralisation remains open in all directions.
The latest results along with results from the remaining 29 drill holes are likely to be positive for the upgrading of the existing Resource of 14.9Mt at 10.5% TGC to the Indicated and Measured categories in mid-July.
Other share price catalysts include the subsequent release of the Epanko Economic Scoping Study after the upgrade.
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