Copper Strike (ASX: CSE) has exited a trading halt at the open of trade this morning following an announcement by Syrah Resources (ASX: SYR) of the company's initial resource for its Balama Graphite-Vanadium Project in Mozambique.
Copper Strike holds 11 million shares in Syrah and is therefore heavily leveraged to any price movement in Syrah. Copper Strike at 10:20EST is trading unchanged.
Syrah's resource has well and truly exceeded the exploration target of 400 to 500 million tonnes at 10% total graphitic carbon (TGC) previously outlined for Balama West.
The global Inferred Resource for Balama West is 564 million tonnes at 9.8% TGC and 0.21% V205 at a 5% TGC cut off.
The contained graphite of the Balama deposit is expected to exceed the rest of the world’s reserves of graphite as recorded by the USGS (77 million tonnes as at 2012).
Syrah expects Balama to be one of the lowest cost producers of graphite in the world, including China.
Given that the independently prepared resource exceeded the exploration target for Balama West, the company is also confident of exceeding the exploration target for Balama East.
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