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Syrah Resources Advancing Towards Maiden Graphite Resource And Scoping Study At Balama

Syrah Resources (ASX: SYR) is making good progress with drilling at its Balama Graphite Project in Mozambique with completion of the tenth hole of a 14-hole program designed to calculate a maiden Resource.

This will then pave the way for the start of a Scoping Study, scheduled for completion during 2012, incorporating the initial Resource.

All of the 10 holes completed to date have intersected graphitic mineralisation from start to finish.

This area will represent a strike extent of about 1.3 kilometres of the overall outcropping mineralisation extent of 7 kilometres.

Drill assays are likely to be highly anticipated given the visual observations to date noting potentially high grade coarse flake graphite.

Potential graphite and vanadium grades

Syrah has updated the market on the clarification of potential graphite and vanadium grades from the Balama Project.

No assays have yet been received for the ongoing drill program at Balama, but initial assays are expected to be received later in July.

Syrah said all inferences about the grade of the mineralisation in the drill holes in past announcements have been drawn from the grade of the mineralisation in the overlying trenches, and visual observations by the geologists in the field that the drill samples are well mineralised and look similar to the trench samples.

The company has previously announced that 328 samples from eight trenches covering 1,800 metres over the Balama mineralisation averaged 14.5% total graphitic carbon.

A further announcement on 5 June reported that the same samples averaged 0.17% vanadium.

Average grades of the six trenches in the drilling area range from 23.3% total graphitic carbon in trench T2 to 12% total graphitic carbon in trench T4.

Of particular interest to the drilling is the close association of trench T5, which averaged 12.7% total graphitic carbon, and drill hole BMDD0001 which was drilled directly beneath this trench.

The hole was drilled down-dip from the mineralisation in trench T5, but only directly tested a higher grade (15.7% total graphitic carbon) portion of the trench. Assays from the drill hole are awaited.

Expected news flow

Initial core samples from drilling have been received at the assay laboratory and results are expected in due course.

Metallurgical testwork, planned to help with the design of the processing plant, will continue over the next six months.

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