JORC Mineral Resource for Epanko
Resource Upgrade Estimate Exceeds Expectations
HIGHLIGHTS:
- Indicated Mineral Resource estimate of 12.8Mt at 10.0% TGC for 1,281,200 tonnes of contained graphite.
- Revised 'Terms of Reference' for Scoping Study now targeting up to 40,000tpa of graphite production, however new Mineral Resource estimate capable of targeting 100,000tpa production in the future.
- Total Mineral Resource estimate increased by 47% to include 2,223,300 tonnes of contained graphite.
- Resource grade and tonnage exceeds all known current and historic graphite Mineral Resources in Tanzania
- Resource estimate covers only a small footprint within the 100% owned KNL Epanko prospect - significant potential exists for future resource growth.
Kibaran Resources Ltd. (ASX: KNL) announces its upgraded JORC Mineral Resource for the Epanko Prospect in Tanzania. A total Indicated and Inferred Mineral Resource of 22.7 million tonnes (Mt), grading 9.8 % Total Graphitic Carbon (TGC), for 2,223,300 tonnes of contained graphite has outperformed all internal expectations.
The Mineral Resource estimate was carried out by CSA Global Pty Ltd, an independent and internationally recognised mineral industry consultancy group and was based on data sets compiled from drilling, trenching and other geological activity. Further, the Mineral Resource estimate has been classified in accordance with the JORC (2012) Code (Refer Table 1 below).
Table 1 - Mineral Resource Estimate at 8% cut-off
| Mineral Resource Classification | Tonnage (Mt) | Grade (%TGC) | Contained Graphite (t) |
| Indicated | 12.8 | 10.0 | 1,281,200 |
| Inferred | 9.9 | 9.6 | 942,100 |
| Total | 22.7 | 9.8 | 2,223,300 |
Notes for table 1:
- Tonnage figures contained within Table 1 have been rounded to nearest 10,000. % TGC grades are rounded to 1 decimal figure.
- The Mineral Resource is quoted from blocks where the TGC (%) grade is greater than 8%.
- Abbreviations used: Mt = 1,000,000 tonnes,
Executive Director Andrew Spinks commented: "The Kibaran Board of Directors is extremely pleased with this outcome, as it not only confirms the confidence shown in drilling results released over the past months but has delivered a result over and above our internal expectations. It places Kibaran in good stead to become a key producer and supplier of premium quality graphite to the sophisticated European market and to that end, the Company is now actively pursuing a second off-take agreement for the Epanko project. Kibaran is in discussion with a number of industrial groups in both Europe and North America in this respect."
SCOPING STUDY
The Indicated Mineral Resource estimate provides Kibaran with a sound technical basis to revise its 'Terms of Reference' for its scoping study. The updated study will evaluate the production parameters on up to 40,000tpa and the indicated resource estimate allows for a future study based on an expansion to 100,000tpa of natural flake production subject to future market demand increases. The revised scoping study is well advanced and will be announced prior to month end.
Kibaran believes the Mineral Resource estimate is the highest grade graphite resource yet to be delineated in Tanzania. Furthermore, the prospect appears to be comparable or better in quality terms to past graphite producing operations in the East African region. The notable comparisons include:
- Tanzania: 8.3% TGC from the Merelani Graphtan Mine
- Mozambique: 9.5% TGC from the Ancuabe Mine
The Mineral Resource estimate represents only a very small footprint (20%) of Kibaran's Epanko project area and as the mineralisation remains open, there is significant potential for further resource growth; as such the deposit has the potential to support increased production levels to cater for future rises in demand for premium quality, large flake graphite.
MINERAL RESOURCE ESTIMATE
Mineral Resource modelling for the Epanko Prospect was undertaken by CSA Global Pty Ltd ("CSA"), an independent and internationally recognised mining and resource consultancy group. Modelling was based on information compiled by Kibaran's geologists and included geological and drilling data derived from thirty five Reverse Circulation (RC) drill holes, three diamond drill holes and eleven trenches cut across the strike of both zones. The deposit comprises an Eastern Zone and a Western Zone of mineralisation. Both zones have been mapped at surface from natural outcrop. Trenching has demonstrated both grade and strike continuity outside the resource limits.
The Western Zone lodes have a strike length of 1,500 metres, while the Eastern Zone has a strike length of 350 metres. The down dip extent of Western Zone is 50 metres below the deepest mineralisation intercept. The Western Zone was extrapolated along strike beyond the two lines of drilling by a distance of 100m to the north and south, supported by observed mineralised outcrop.
The Western Zone exhibits steeply dipping stratigraphy (80o East), while the Eastern Zone has two lenses, one with a more moderate dip (30o west) and the other sub-vertical. The graphitic mineralisation is open at depth in both zones.
3D modelling of the Epanko graphite mineralisation was undertaken by CSA and block grades were estimated using Ordinary Kriging. A density value of 2.58t/m3 was applied to the Mineral Resource, based upon density measurements from samples sourced from several of the trenches. Drill samples were assayed by a reputable independent assay laboratory in South Africa.
It is important to note that a substantial amount of graphite mineralisation exists within the model at lower TGC cut-off grades (refer figure 1); at a 5% Cut-off grade, a total 80Mt at 7.5% TGC for 6,052,800 tonnes of contained graphite.
The Mineral Resource was classified according to the JORC Code (2012 Edition). Classification of the Mineral Resource estimates considered the geological understanding of the deposit, QAQC of the samples, density data and drill hole spacing. In addition, Clause 49 of the JORC (2012) code was referred to, with metallurgical characteristics (flake size and distribution, flotation results), as well as marketing agreements, all supporting the Indicated level of classification.
Figure 2 presents a collar plot of the Epanko deposit. A more detailed breakdown of the components making up the Mineral Resource estimate are provided in JORC Table 1, presented at the end of this announcement.
A cross section of a typical section is presented in Figure 3 and the model is shown in Figure 4 and 5
CLAUSE 49, JORC CODE CONSIDERATION
In accordance with Clause 49 of the JORC code (2012), the product specifications and general product marketability were considered to support the Mineral Resource estimate for Industrial Minerals. Independent test work programs has determined (refer announcement 5 June 2013)
- Simple Flotation achieved >96% recovery of graphitic carbon.
- Flotation test work yielded large flake graphite:
- 73.8% in >106µm (micron) fraction; and
- 21.6% in >300µm (micron) fraction
- Ultra High Purity - 99.98% achieved in a simple one-step purification process
Testwork has confirmed the graphite mineralisation is suitable for the 'expanded' and 'spherical' battery market and in fact has no limitations on its uses (refer announcement 7 July 2104). Saleability aspect is supported by the company's binding offtake agreement and sales partner for graphite sales (refer announcement 23 December 2013). Commercial viability is assisted by having the following key attributes (refer table 2).
- Low percentage of fine flake (< 75micron) = low value and likely unsaleable
- High percentage of large flake provides higher basket prices and increased saleability
About Kibaran Resources Limited:
Kibaran Resources Ltd. (ASX: KNL or "Kibaran") is an exploration company with highly prospective graphite and nickel projects located in Tanzania.
The Company's primary focus is on its 100%-owned Epanko deposit, located within the Mahenge Graphite Project. Epanko currently has an Inferred Mineral Resource Estimate of 22.7Mt, grading 9.8% TGC, for 2.2Mt of contained graphite, defined in accordance with the JORC Code. This initial estimate only covers 20% of the project area. Metallurgy has found Epanko graphite to be large flake and expandable in nature.
Kibaran also has rights to the Merelani-Arusha Graphite Project, located in the north-east of Tanzania. Merelani-Arusha is also considered to be highly prospective for commercial graphite.
Graphite is regarded as a critical material for future global industrial growth, destined for industrial and technology applications including nuclear reactors, lithium-ion battery manufacturing and a source of graphene.
In addition, the Kagera Nickel Project remains underexplored and is located along strike of the Kabanga nickel deposit, owned be Xstrata, which is considered to be the largest undeveloped, high grade nickel sulphide deposit in the world.
For further information, please contact:
Company Secretary
Robert Hodby
Kibaran Resources
P: + 61 8 6380 1003
Investor/Media Relations
Rebecca Lawson
M&C Partners
P: +61 2 8916 6124
E: rebecca.lawson@mcpartners.com.au
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Andrew Spinks, who is a Member of The Australasian Institute of Mining and Metallurgy included in a list promulgates by the ASX from time to time. Andrew Spinks is a director of Kibaran Resources Ltd. and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Andrew Spinks consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr David Williams, who is a Member of The Australasian Institute of Mining and Metallurgy included in a list promulgated by the ASX from time to time. David Williams is employed by CSA Global Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". David Williams consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. |
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