Walkabout Resources Ltd (ASX:WKT) has assayed up to 44.3% total graphitic content from trenching at the 70% owned Lindi Jumbo Graphite Project in southeast Tanzania.
Assays were received from three trenches completed over the potential stater pit area of The Gilbert Arc deposit within the Lindi project.
The trenches confirm that the mineralised zones, including the very high grade Domain 2, extend to surface or near-surface.
Allan Mulligan, managing director, commented: “We have been optimistic that the surface outcrop material at Lindi Jumbo also contains high grade and wide graphite for commercial exploitation and now this is shown to be the case.
“Combine this with the excellent metallurgical results achieved for the same material and the initial mining period for Lindi Jumbo should result in highly robust and attractive project economics.”
Trenching results
Three trenches excavated along strike of The Gilbert Arc deposit exposed mineralised zones as defined in the current Inferred Resource model.
High grade intersections from the trenching includes:
Trench #1
- 6.35 metres at 18.2% TGC from 4.85 metres including 3.2 metres at 29.8% TGC; and
- 5 metres at 23.4% TGC from 16.0 metres.
Trench #2
- 9.3 metres at 22.6% TGC from 24 metres including 4 metres at 25.2% TGC;
- 2.2 metres at 38.5% TGC from 28.8 metres;
- 7.6 metres at 10.1% TGC from 44 metres; and
- 3.4 metres at 21.3% TGC from 56.6 metres including 1.16 metres at 35.7% TGC.
Trench #3
- 18 metres at 26.4% TGC from start of trench including 9.3 metres at 33.1% TGC;
- 4.5 metres at 29.3% TGC from 11.5 metres; and
- 2.5 metres at 11.9% TGC from 24.5 metres.
The remainder of the drill samples from the completed infill drill program are still being processed.
Lindi Jumbo Graphite Project
Walkabout is fast tracking the exploration and development of the 70% owned Lindi Jumbo Project 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.
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.
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.
Analysis
Trenching results from The Gilbert Arc have de-risked the project further by proving that mineralised high grade graphite zones extend to surface and near surface.
Metallurgical test work previously reported from this outcropping high grade material produced outstanding results with a distribution of 75.98% of flakes being in the large, jumbo and super jumbo categories.
The graphitic zones show evidence of being soft and highly weathered, suggesting potential for low cost free digging.
All three trenches intersected the very high grade Domain 2 further confirming the continuous nature of the deposit along strike from surface to depths in excess of 50 metres.
Gilbert Arc is now the highest grade graphite deposit discovered in Tanzania.
The first batch of assay results are expected from the infill program, which will be used in the expected resource upgrade scheduled for October.
A resource upgrade at Lindi bodes well for improved project economics.
The feasibility study, currently in progress is expected in the December quarter.
Walkabout recently commenced a 1:4 rights issue priced at $0.004 to raise up to $2 million.
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