The latest drilling at Black Rock Mining’s (ASX:BKT) Mahenge graphite project in Tanzania has further highlighted the potential of the Ulanzi prospect with the highest grades recorded at the site to date.
Assays from three new Ulanzi holes returned 54 metres at 9.8% TGC (including 10 metres at 17.7% TGC), 52 metres at 8.95% TGC (including 18 metres at 10.3% TGC) and 70 metres at 9.5% TGC (including 54 metres at 10.1% TGC).
Mineralisation remains open to the north and south, with at least another 30 holes of drilling in the area expected to resume at the end of the month.
Seventeen holes have been drilled to date along the 5.5-kilometre-long structure, generating results such as 54 metres at 10.1% TGC (including 14 metres at 12.5% TGC) and 60 metres at 9.9% TGC (including 12 metres at 13% TGC).
Assay results for the remaining five holes of the initial seventeen hole programme are expected in early November.
Mineralisation at Ulanzi is steeply dipping to the east at about 70 degrees and is located on a steep ridge that
sits 100-120 metres above adjacent valleys. This indicates potential for low strip ratios and the ability to mine up to 100 metres vertical depth.
Portfolio building
Black Rock recently added to its Tanzanian graphite holdings beyond Mahenge by securing an exclusive option to acquire the Bagamoyo jumbo flake project.
Consideration includes a non-refundable cash payment of USD$50,000 and, subject to compliance with ASX Listing Rules, the issue of 1 million shares, and other staged payments as outlined below.
Bagamoyo covers more than 1100 square kilometres, and hosts exceptionally coarse flake graphite - which Black Rock said was typically 2-7 millimetre flake with more than 10-milimetre flake observed.
The project is located 125 kilometres by road from Dar es Salaam export port.
The graphite is mapped in outcrop and float rock over a 1-kilometre strike area, with four additional outcrops uncovered over a 7-kilometre area.
Outcrop samples have been dispatched to Australia for flake characterisation.
Exploration work is underway to assess the discovery outcrop area as well as conducting regional reconnaissance work with an additional team.
Analysis
The latest drill hits at Ulanzi are the best yet to be recorded at Mahenge, confirming the potential of the prospect to be the company’s most prized development area.
All holes at Ulanzi have intersected consistent graphite and provided a solid basis for infill and extensional drilling, which may in turn offer upside to Black Rock share price.
The upcoming drilling at Ulanzi will results in more than 2 kilometres of the structure being defined and is expected to generate sufficient information for a maiden JORC-compliant resource at the prospect.
The definition of a resource at Ulanzi by the end of 2015 also represents a significant potential price catalyst for Black Rock.
Black Rock shares at 240% stronger than four months ago, currently trading at A$0.085. With more drilling and newsflow to come, further gains can not be ruled out based on its market capitalisation.
The Bagamoyo acquisition comes with a small price tag, and further enhances Black Rock as a pure east African graphite play.
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