Walkabout Resources (ASX:WKTDA) has increased its Gilbert Arc high grade graphite deposit within the Lindi project by 165%.
Lindi is located in south-eastern Tanzania.
Normally ticker is ASX:WKT. Currently trading post-consolidation on a deferred settlement basis until Friday 9th December
The resource increases to 29.6 million tonnes at 11.0% total graphitic content (TGC) for 3.2 million tonnes of contained graphite.
40% of the JORC resource is in the higher Measured and Indicated categories.
The Gilbert Arc resource includes 4.7 million tonnes of super high grade material grading 22.8% TGC in three discrete shallow zones confirming this to be by far the highest grade resource in Tanzania.
Andrew Cunningham, technical director, commented:
"The exceptional increase in the size of the Mineral Resource as well as the substantial amount of high grade material in the Measured and Indicated categories will provide an excellent technical platform for the development of the project."
Resource upgrade details
The intention of the drilling program was to increase the confidence in the resource to allow for the completion and reporting of the feasibility studies.
The drilling led to a much better understanding of the geological model with mineralised zones dipping shallower and often wider than the initial interpretation and additional high grade zones intersected in the hanging wall of the deposit.
This has resulted in a significant increase of 165% in resource tonnage along the western flank of the deposit with the deposit remaining open down-dip and along strike.
Gilbert Arc resource details include:
- Measured: 6.4 million tonnes at 12.2% TGC;
- Indicated: 5.5 million tonnes at 11.0% TGC; and
- Inferred: 10.6 million tonnes at 10.6% TGC.
Lindi Jumbo Graphite Project
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% TGC.
These verified results place the project in a high class of revenue per tonne of saleable concentrate.
Analysis
The resource upgrade is a significant step towards advancing the Lindi project towards the development phase.
The super high grade graphite zones witnessed from surface, strongly support the company’s belief that operating costs of the project will be amongst the lowest in the graphite sector.
These discrete super high grade zones are easily accessible by mining from surface enabling potential high grade plant feed.
Furthermore, metallurgical test-work on the high grade material confirms that the zones contain between 16% and an industry best 25% super jumbo flakes from surface to depths in excess of 50 metres.
The scoping study is being updated for release this month and the definitive feasibility study is expected to be completed in February 2017.
Shares in Walkabout Resources are up 11% intra-day.