IM Graphite News in Brief 5 – 11 June

By Laura Syrett
Published: Thursday, 11 June 2015

Kibaran upgrades Epanko resource to measured and indicated status; Graphite One buys more claims in Alaska.

ASX-listed Kibaran Resources Ltd has upgraded the mineral resource estimate at its Epanko graphite project in Tanzania, with 62% of the resource now classified and measured and indicated.

This amounts to 14.5m tonnes grading at 9.8% C, for 1.4m tonnes contained graphite, of which 46%, or 6.6m tonnes, is classified as measured at a grade of 9.7% C. A further 8.8m tonnes grading at 8.7% C remains in the inferred category, taking the total resource estimate to 23.3m tonnes graphite ore.

"The mineral resource supports the previously announced expanded production scenario, which would involve producing 100,000 tpa of concentrate over 20 years with no further exploration required," Kibaran said in a press release.

The company plans to use the upgraded resource estimate as the basis for its bankable feasibility study (BFS) on Epanko, which Kibaran said is nearing completion.

Also in Tanzania, Walkabout Resources Ltd has released the results of metallurgical testwork on three graphite samples taken from its Lindi graphite project, according to media reports.

Australia-headquartered Walkabout reportedly confirmed that tests showed that up to 65.7% by mass of the material in the samples was in the jumbo and large flake size categories, with around a 95% recovery rate recorded across all the samples.

The company expects that single stage cleaner flotation may be sufficient to produce a high quality end product from Lindi ore.

Over the border in Mozambique, fellow ASX-listed Mustang Resources Ltd has confirmed the potential existence of large flake graphite on its Balama graphite project in the north of the country.

The company recently received the results of laboratory tests on samples collected during a field reconnaissance programme completed at the site in October 2014, which it said confirmed strong conductors and graphite grades of up to 13.5% C from grab samples.

Scout drilling samples returned grades of up to 17% C, meanwhile. The company is planning an electromagnetic survey over the course of June and July this year, followed by a full season drilling programme in August.

In the US, Graphite One Resources Inc. has executed a purchase and sale agreement with Ronald Sheardown for 28 mining claims covering its Graphite Creek property in the state of Alaska.

The TSX-V listed explorer said that the claims cover the same lands as those acquired by its subsidiary, Graphite One (Alaska) Inc. (G1 Alaska), in January 2012. Consequently, the Graphite Creek property now consists of 56 acquired state claims, 77 staked claims ad 24 leased claims.

According to a statement from Graphite One, the company has agreed to pay Sheardown $50,000 upon completion of its next financing that raises a minimum of $500,000. It will also issue Sheardown with 3m common shares in the company at an issue price of Canadian dollar (C$) 0.10/share ($0.08/share*).

Graphite One will further pay Sheardown a royalty interest equal to 1% of the net smelter returns received by G1 Alaska, subject to the company’s option to purchase the royalty for $50,000 and agree to retain Sheardown as an advisor and grant him stock options to purchase 1m common shares in the company at an exercise price of C$0.13/share.

In Sweden, ASX-listed Talga Resources Ltd has released drilling results from eight holes at its Jalkunen graphite project, indicating wide and high grade graphite intersections.

Talga said that many of the best intersections are at shallow depth and have returned grades of up to 31.8% C.

The company now plans to complete a maiden resource for Jalkunen, which is its second priority property after the Vittangi graphite project, also located in Sweden.

Finally, in Canada, Saint Jean Carbon Inc. has applied to the TSX-Venture Exchange for acceptance to settle C$141,674 of debt owed to various arm’s length consultants for geological expenses by issuing around 2.83m commons shares in the company at a deemed price of C$0.05/share.

The debt shares to be issued are in reliance on certain prospectus and registration exemptions available under applicable securities legislation and are subject to a hold period of four months and one day.

*Conversion made June 2015