IMX Resources (ASX:IXR) has hinted at the large resource potential often inherent in East African graphite projects by announcing an ambitious exploration target for its Chilalo project in Tanzania.
The company will target the delineation of 100-350 million tonnes grading about 3-11% total graphitic carbon (TGC) at Chilalo, which itself represents only 5% of IMX’s 5,800-square-kilometre Nachingwea property.
For comparison, Triton Resources (ASX: TON) and Syrah Resources (ASX:SYR) in nearby Mozambique are typically cited as hosting the world’s largest graphite deposits, with each company controlling more than 1 billion tonnes grading around 10% TGC.
Recent electromagnetic conductor analysis at Chilalo has also drawn a comparison between Chilalo’s exploration potential and the inventory already outlined at its high-grade Shimba area.
A maiden resource of 7.4 million tonnes at 10.7% TGC for 792,000 tonnes of contained graphite was established at Shimba in April, with more than 90% of the resource less than 100 metres from surface.
The economics related to this shallowness may be critical to IMX, which acknowledges that the size of the resource is not necessarily the main driver in the graphite success.
The largeness of the new target resource at Chilalo, however, contemplates a path for developing a more complete picture of the project’s potential as a high-grade, coarse flake graphite operation with potential to grow well beyond the scope of the initial mine.
IMX intends to complete its prefeasibility study at Shimba in October 2015. This will be based on a 50,000 tonnes per annum flake graphite operation.
The company confirmed today that it was seeking to complete off-take and finance agreements with its strategic partners in the near future.
IMX voluntarily delisting from the Toronto Stock Exchange (TSX) in July to reduce costs due to the limited trading volume and low ownership on the Canadian board.
The explorer held A$1.75 million in cash at bank as of the end of June 2015. Subsequent to the end of the June quarter, it secured a strategic cornerstone investment from a prominent Chinese business for more than half of a $3 million share placement at $0.012 per share.
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