Walkabout Resources (ASX:WKT) has received new reconnaissance exploration results from the 70% held high grade Lindi Jumbo Graphite Project in south eastern Tanzania.
Grades of up to 22.9% total graphitic content (TGC) were discovered in reconnaissance mapping over prospective areas on PL9994 and PL9993.
Additional high grade graphite has been sampled over outcropping areas coinciding with electromagnetic anomalies on PL9992.
Furthermore, multiple mineralised units have been identified parallel to the main conductors in PL9993.
Andrew Cunningham, technical director, commented:
"The results from the regional Lindi Jumbo reconnaissance program, together with our in-house knowledge of the high grade graphite mineralisation style within the region, confirm our belief in the significant potential of the larger project area."
Exploration potential
Following the two campaigns of mapping and sampling over the VTEM survey area on PL9993 the exploration potential for this area was also assessed.
The updated exploration potential for PL9992 and PL9993 is summarised as:
- PL9992: 6.7 kilometre strike for between 36 and 104 million tonnes; and
- PL9993: 10.7 kilometre strike for between 8 and 67 million tonnes.
The combined strike length of conductive zones in both areas is circa 17.5 kilometres with many of the conductive units coinciding with sporadic in-situ graphitic outcrops with surface grades up to 38.4% TGC.
Drilling that was completed over four of the covered conductive areas in PL9992 with significant intersections including 15 metres at 14.1% TGC from 14 metres depth.
Background
Walkabout is fast tracking the development of the 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 based on an existing and proven flow-sheet used elsewhere in Africa and 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.
Walkabout currently holds 70% of four licences at Lindi Jumbo with an option to acquire the remaining 30% share.
Recent maiden Ore Reserve
Walkabout recently posted its maiden Ore Reserve for Lindi, which measured 5 million tonnes at 16.13% TGC for 809,081 tonnes of graphite concentrate.
This is the highest grade Ore Reserve in Tanzania totalling 42% of the current Measured and Indicated Mineral Resource.
Furthermore, no Inferred Resources were used in defining the Proven and Probable Ore reserves.
The maiden Ore Reserve follows the recently finalised its definitive feasibility study (DFS), which demonstrated:
- Highest grade mineable resource in Tanzania leading to mill feed grade of >17% TGC;
- Lowest unit operating cost of US$292 per tonne in concentrate at mine gate;
- Lowest start-up capital at US$38.7 million;
- Highest ratio of Large, Jumbo and Super Jumbo (+180µm) flakes in concentrate;
- High weighted average basket price ($1,687) due to flake size distribution; and
- The manageable and realistic start up production rate reduces technical and market risk.
The finalisation of the DFS is a milestone that redirects management focus from project technical design to project development and enabling fund raising.