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Metals of Africa is drilling high impact graphite program in Mozambique

Published: 10:26 13 May 2015 BST

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Metals of Africa readies for graphite drilling in Mozambique

Metals of Africa (ASX:MTA) has started a 5,000 metre drill program to define a maiden near-surface JORC Resource at the Montepuez Central Project in Mozambique that is expected to be closely watched.

If Triton Minerals’ (ASX:TON) path to development is any guide, this is a big opportunity for MTA to move along that exploration path.

The drill program will focus on areas of near-surface, high grade mineralisation confirmed from drilling to date.

It follows on the company’s successful maiden drilling campaign at the Montepuez project that ended in December 2014 and intersected zones of high grade graphite mineralisation, including 145.59 metres at 9.60% Total Graphitic Content and 0.12% vanadium (V) from 34 metres.

Metals of Africa is focused on defining a shallow, oxide zone resource, and as such the average end-of-hole depth in the drilling program is expected to be approximately 60 metres.

Two drill rigs will be utilised concurrently and the program is expected to be completed in August 2015.

“Our first drill program came up with the goods including an oxide zone grading at 14.75% TGC,” managing director Cherie Leeden said.

“During the next few months of drilling we are aiming to expand upon our database in order to define a maiden JORC Resource.

“We are focused on delivering a shallow, high grade oxide Resource as the basis of progressing development of the project in the most cost effective and time efficient manner whilst delivering value for shareholders.”

The company is awaiting the next batch of laboratory assay results from the maiden 21 hole drill program.


Other Activity

Metals of Africa has confirmed a proposed drill program for its Balama Central Project and anticipates drilling to start the second half of 2015.

This will target the conceptual strike extent of Syrah Resources' (ASX: SYR) mineralisation based on a VTEM response.


Montepuez Central

The wholly-owned Montepuez Central project is located in the world renowned Balama province in Cabo Delgado, Mozambique, which hosts Triton’s Nicanda Hill deposit (1.47 billion tonnes at 10.7%TGC) and Syrah’s Balama Graphite Project (1.15Bt at 10.2%TGC).

The province has existing infrastructure that sets it above others from a global perspective.

Montepuez Central is just 250 kilometres from Pemba Port, which not only has existing capacity but is also about to be upgraded due to the activity the gas sector is generating.

Pemba is accessed via regular direct international flights and is gaining international attention as home to the world’s fourth largest offshore gas reservoir which has given rise to a lot of recent development.

The province also boasts existing water and power supply which makes developing a mining operation a genuine possibility.

Metals of Africa’s drilling is aimed at delivering a maiden JORC resource with the company working towards delivering an Indicated Resource that can be used in its Pre-Feasibility Study.
   

Analysis

The start of drilling at the Montepuez Central Project offers investors an opportunity to re-load on Metals of Africa as it drives towards defining a maiden JORC Resource and advancing a PFS later this year.

If the exploration and sharemarket success Triton Minerals has enjoyed is any indication, there could be significant exploration potential ahead and catalysts to lift MTA's valuation for investors to get on board.

There are precious few opportunities to get in on drilling in one of, if not the most prospective graphite discovery regions in the world.

MTA is capitalised at just under $12 million, leaving it leveraged to exploration successes.

Adding further interest, its focus on shallow oxide targets enables the company to reduce costs by drilling cheaper shallow holes instead of 350 metre deep holes.

This also has the enviable result of faster turnaround time from the drilling phase to the BFS stage.

Already, the company has received initial interest from numerous parties spanning Europe, Australia and Asia.

It is fully-funded to deliver a JORC graphite resource with $2 million in cash as at 31st March 2015.

Share Price Catalysts
- Further results from maiden drilling program;
- Results from drilling at Montepuez Central;
- Define JORC Resource and conduct detailed metallurgical test work Q3 2015;
- Rapidly and cost effectively advance project to PFS during 2H 2015;
- Results from drilling at Balama Central; and
- In parallel to the above, advance R&D and offtake opportunities.

 

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