Syrah Resources (ASX: SYR) has received further results from drilling at Balama West, part of the company’s Balama Graphite Project in Mozambique, which has extended the high grade graphite zone by 400 metres to the west, as well as to the east.
Diamond drilling has unearthed a best intercept of 186 metres at 16.7% total graphitic carbon and 0.46% vanadium from 131 metres, including 94 metres at 19.1% total graphitic carbon and 0.57% vanadium.
Adding to the exploration upside the graphitic unit is still open to the north, west and south, all areas that are unexplored. Maiden resources for both Balama West and Balama East are expected by the end of 2012.
Other new notable intersections from Balama West include 185 metres at 13.1% total graphitic carbon and 0.3% vanadium from 108 metres, 186 metres at 16.7% total graphitic carbon and 0.46% vanadium, and 67 metres at 10.3% total graphitic carbon and 0.25% vanadium.
This combined with the previously reported intercepts of 196 metres at 16.9% total graphitic carbon and 0.41% vanadium, and 158 metres at 13.1% total graphitic carbon and 0.31% vanadium continue to confirm the project as a very high grade graphite deposit on a global basis.
Paul Kehoe, managing director, told Proactive Investors today Syrah is very happy with the results that show extremely broad widths of very high grade graphite.
“What it shows is the graphite that we’re intercepting at depth actually comes to the surface where we originally did the trenching.”
The graphite flakes also appear to be predominately coarse to very coarse in size, which is extremely promising as coarse flake graphite generally attracts higher sales prices.
Additional large, high grade zones of mineralisation have been visually logged by geologists in the other 10 drill holes at Balama West that have not yet been assayed.
Syrah has now completed 40 diamond drill holes in two zones – Balama West and Balama East. These two zones comprise a small portion of the overall Balama Project, most of which remains lightly explored.
The company has completed 25 diamond drill holes at Balama East, most of which have intersected thick mineralised sequences starting from surface.
As a result of the visual observations, the focus of the upcoming Scoping Study has now shifted to Balama East.
The remaining results from all of the holes in Balama West are expected within about a month, and are likely to be highly anticipated given the results to date.
Similarities to trench results
Importantly, there is a strong correlation between earlier trench results and the recent diamond drilling.
The results from trench T5, which were released several months ago, were similar to those in the hole drilled beneath it.
Results from trench T5 included 141 metres at 18.3% total graphitic carbon and 0.43% vanadium, including 84 metres at 20.1% total graphitic carbon and 0.46% vanadium.
Results from the other trenches, T9, T10 and T11 are not yet available, however visual estimates indicate that large thicknesses of graphitic mineralisation were also encountered in these trenches at surface.
This is important because it shows that on these sections, as well as on the section with trench T5 and the drill hole beneath it, that thick, impressive mineralisation outcrops at surface and will be available for early mining with no strip ratio.
Metallurgical testing
The focus of the metallurgical program has shifted to Balama East because visual observations indicate that mineralisation is thicker and higher grade in Balama East than in Balama West.
The Mintek laboratory in Johannesburg will conduct test work on shallow core (0 to 60 metres deep) from six holes at Balama East.
The work is currently being planned and will begin later in September.
The objective of these tests is to improve further on the original successful testwork that Syrah conducted earlier this year, and it is an important first step in designing production processes which will form part of the Scoping /Feasibility Studies.
Previous metallurgical testing achieved concentrate grades in excess of 95% carbon at recoveries up to 87% of the total carbon.
This grade has the potential to be further enhanced into a very high grade product in excess of 97% carbon.
Exploration plan
A reverse circulation drill rig is scheduled to arrive onsite in late September to scout drill to identify further near surface, high grade graphite zones.
The Balama Project is very large with over 7 kilometres of strike distance and up to 2 kilometres of surface width of outcropping graphite and vanadium mineralisation.
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