Walkabout Resources Ltd (ASX:WKT) has assayed grades of up to 41.1% total graphitic carbon from its first 7 holes drilled at the 70% owned Lindi Jumbo Graphite Project in southeast Tanzania.
Assays are part of a recently completed 24 hole infill program at the Gilbert Arc deposit.
The drill program was focussed along the high grade western flank of the deposit and a resource upgrade is planned for release during October 2016.
A significant portion of the Inferred resource is expected to be upgraded into the Indicated and Measured categories.
Allan Mulligan, managing director, commented: “The Lindi Jumbo deposit continues to deliver high grade, Jumbo Flake graphite over wide, mineable intercepts.
“The high grade nature of the deposit, the wide intercepts and the high ratio of Jumbo Flake will translate into very robust project economics.”
Details drill results
Results from the first 7 drill holes were received with the remainder of the samples currently being processed.
All drill holes intersected high grade graphite zones with grades up to 41.1% total graphitic content (TGC) over 1 metre.
Other highlights included:
- 33 metres at 14.1% TGC including 4 metres at 30.1% TGC;
- 8 metres at 19.8%TGC including 5 metres at 26.9%TGC;
- 9 metres at 18.9 %TGC including 5 metres at 27.98 %TGC;
- 11 metres at 18.7 % TGC including 5 metres at 29.0% TGC; and
- 43 metres at 15.8% TGC including 9 metres at 34.9% TGC.
Lindi Jumbo Graphite Project
The company has a 70% interest in a total exploration area of 325 square kilometres in southeast Tanzania.
During the June quarter, the company finalised the Integrated Study Level 1 (scoping study), a technical and financial assessment based on the high grade Inferred Resource.
Due to regulations, the technical and financial results of this report are to be used for internal planning purposes only and are not able to be released to the market.
Following a review of the report, the company board unanimously agreed to proceed to the next level of study.
With the current low capex-early cash flow strategy now approved, Walkabout is aiming to enter production in 2017 through a surface mining and processing operation at the site.
Recent test work at Lindi produced a super jumbo, high margin graphite concentrate containing up to 25.7% super jumbo flakes and grades up to 98.85% total graphitic content.
These verified results place the project in a high class of revenue per tonne of saleable concentrate.
Analysis
Results confirm Gilbert Arc to be the highest grade graphite deposit discovered in Tanzania.
The first batch of assay results from the infill program will be used in the expected resource upgrade scheduled for October.
A resource upgrade at Lindi bodes well for improved project economics.
Furthermore, a number of shallow drill holes and trenches confirm the continuity of the mineralised zones to surface.
Walkabout is fast tracking the development of Lindi to take advantage of forecast market conditions for flake graphite deposits with high ratios of large and jumbo flakes.
The company has developed a proprietary processing technique which yields exceptionally high ratios of large, jumbo and super jumbo flakes into concentrate.
This premium product will allow higher than average revenues to be achieved
Metallurgical results have already indicated a basket price for Lindi concentrate valued at US$1,529 to US$2,567.
Furthermore, highly pure natural graphite such as that found at Lindi is suitable for sphericalisation and use in the lithium-ion battery market.
The feasibility study, currently in progress is expected in the December quarter.
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