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Syrah Resources MD Increases Shareholding Post Acquisition Of Second African Graphite Asset

Syrah Resources (ASX: SYR) managing director Paul Kehoe has increased his direct interest in the company through the purchase of 10,000 additional shares.

Kehoe acquired the shares on 2 March for a total consideration of A$7,150, providing an average entry price of $0.715.

He now directly holds 3.26 million ordinary fully paid shares and 4.7 million employee options exercisable at $0.26 on or before 15 December 2015.

Syrah is busy proving up the potential of its graphite assets in southeast Africa, most recently demonstrating saleable grades of graphite from the Balama Graphite Project in northern Mozambique through initial metallurgical testwork.

Results showed grades in excess of 95%C at recoveries up to 87%. Importantly, the grade has the potential to be further enhanced into a very high grade product in excess of 97%C.

Balama has already differentiated itself from graphite deposits in Canada, Europe and Australia through its large tonnage potential, high grade and coarse flake size, which is being revealed through exploration and metallurgical work.

Meanwhile, Syrah has also acquired a second graphite project in southeast Africa, 325 kilometres north of Balama in south Tanzania.

Indicating the highly prolific nature of Nachingwea is the geological similarities to Balama, a project that is showing early potential to become one of the largest graphite deposits in the world.

High visual grades have been reported from the project of up to 60% graphite with coarse flake graphite observed.

A historical report indicates that graphite can be concentrated to above 98% content from a single flotation circuit.