Key highlights include:

 

- Resource increased by 14% to 60.2 million tonnes at 8.1% Total Graphitic Carbon (TGC) utilising an additional 19 infill drill holes completed in late 2016;

 

- Cascades Measured and Indicated Resources increased by 25% to 32.9 million tonnes at 8.3% TGC with a high-grade portion of 14.6 million tonnes at 12.2% TGC; and- The total Mahenge Graphite Project resource increased to 211.9 million tonnes at 7.8% TGC, with a high-grade portion of 46.6 million tonnes at 10.6% TGC.

 

The resource upgrade is expected to enhance the PFS optimisation study currently being completed, expected for release late July.

 

In addition to the high-grade zone, Cascades is expected to deliver an increase in free dig depth and a higher proportion of coarse flake in concentrates compared to Ulanzi.

 

John de Vries, interim CEO, commented:

 

"Whilst the 14% increase of Cascades Mineral Resource is pleasing, we are most excited by the 25% increase of proportion of Measured and Indicated Resources.

 

"We believe this will directly assist in delivering industry leading low operating cash costs for a project that has already demonstrated its ability to deliver high purity product from conventional flotation circuit process.

 

"We believe that we have the best graphite resource of any development stage project and look forward to incorporating this development into the soon to be released optimised PFS, that considers a third milling module."

 

Analysis

 

Mahenge sits on a global scale, being the fourth largest JORC-compliant graphite resource in the world.

 

This offers significant flexibility for potential development into a multi-generation mining operation.

Source : http://www.proactiveinvestors.com.au