Discovery Africa (ASX:DAF) has found graphite grades of up to 25.3% following due diligence field exploration at the Kitgum graphite project in Uganda.
Discovery is in the process of acquiring up to 100% of Consolidated African Resources (CARL), which holds Exploration Licence 1025 near Kitgum in Uganda that is prospective for graphite.
The positive due diligence reaffirms Discovery's acquisition strategy with the company intending to complete the requirements to achieve a 100% holding in CARL.
The due diligence also found 9 out of 16 samples containing above 10% total graphitic carbon (TGC) and visible graphite were seen along the 18 kilometre and 1 kilometre wide graphitic trend.
The company now plans exploration with geological reconnaissance including Astor imaging and interpretation of government magnetic data to be done by end of March; airborne geophysical program to be done by June and start of drilling in July.
It hopes to make a resource declaration in the fourth quarter of this year.
As part of the Heads of Agreement, upon the execution of the heads of agreement, DAF acquired 25% of the issued capital of CARL; DAF will commit to spending a minimum of US$264,000 in order to achieve JORC compliant certification on EL 1025 (‘Phase 2’);upon completion of Phase 2, DAF will be issued a further 50% of the issued capital of CARL.
The final 25% of CARL can be purchased by Discovery Africa on an agreed fair market value.
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