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PRESS RELEASE: Kibaran Resources Limited: EPANKO MINERAL RESOURCE UPGRADE

3 Apr 2017 6:51 am

Dow Jones received a payment from EQS/DGAP to publish this press release.
 
 
 DGAP-News: Kibaran Resources Limited / Key word(s): Miscellaneous 
Kibaran Resources Limited: EPANKO MINERAL RESOURCE UPGRADE 
 
2017-04-03 / 08:51 
The issuer is solely responsible for the content of this announcement. 
 
*31 March 2017* *ASX ANNOUNCEMENT* 
 
*EPANKO MINERAL RESOURCE UPGRADE * 
 
*40% increase in contained graphite plus high value extensional targets identified* 
 
*Kibaran Resources *(ASX:KNL) is pleased to report an upgraded Mineral Resource 
estimate for its Epanko Graphite Project in Tanzania. The upgraded Mineral Resource 
delivers a significant 40% increase over the Mineral Resource estimate previously 
announced in 2015. 
 
The upgraded Mineral Resource estimate incorporates infill and extensional drilling 
completed in 2016 and geo-technical inputs generated as part of the updated base 
case Bankable Feasibility Study ('BFS') of 40,000 tonnes per annum over a 25 year 
LOM including a 60,000 tonnes per annum scenario. 
 
The updated BFS is being completed to meet Equator Principles and the IFC 
Environmental and Social Performance Standards and currently subject to an 
independent technical review for Kibaran's funding partners (KfW IPEX-Bank and 
Nedbank) advanced due diligence. 
 
The Mineral Resource is a significant increase from the previously announced 
Mineral Resource estimate in 2015. 
 
*Key Highlights* 
 
*- *40% increase on the previous Mineral Resource to 30.7Mt at 9.9% Total Graphitic 
Grade ('TGC') for 3.05Mt contained graphite compared to the June 2015 estimate 
using a 8% TGC cut-off grade (consistent with the previous Mineral Resource of 
23.3Mt at 9.4% TGC grade reported in June 2015) 
 
- The increased Mineral Resource positions Kibaran to be a major baseload supplier 
of high value graphite products to traditional and emerging markets 
 
- The upgraded Mineral Resource will support both a longer mine life and an 
expanded production case 
 
- Of the 4km strike identified by the recent VTEM survey, only 1.13km has been 
drilled on the Western Deposit which remains open at depth with the deepest 
reported graphite intersection at 200m 
 
The Mineral Resource estimate was carried out by CSA Global Pty Ltd ('CSA Global') 
and has been classified in accordance with the JORC (2012) Code and is shown in 
Table 1. 
 
A revised mine plan and Ore Reserve for both the 40,000tpa and 60,000tpa 
concentrate scenarios will be completed and incorporated in the updated BFS in 
April. 
 
*Table 1:* March 2017 - Mineral Resource Estimate for Epanko Deposit > 8% TGC 
 
*JORC               *Tonnage      *Grade (%       *Contained 
Classification*       (Mt)*         TGC)*       Graphite (t)* 
Measured               7.5           9.8           738,900 
Indicated             12.8          10.0          1,280,000 
Inferred              10.4           9.9          1,030,600 
*Total *             *30.7*         *9.9*        *3,049,500* 
 
_Notes for Table 1: Tonnage figures contained within Table 1 have been rounded to 
nearest 100,000. % TGC grades are rounded to 1 decimal figure. Abbreviations used: 
Mt = 1,000,000 tonnes. Rounding errors may occur in tables_. 
 
A substantial amount of graphite mineralisation exists within the reported Mineral 
Resource at lower TGC cut-off grade at 5% TGC as follows: 
 
- 113.3Mt at 7.2 %TGC for 8.1Mt of contained graphite 
 
The Mineral Resource upgrade is based on the increased confidence in the geological 
model gained from results of extensive infill and extensional drilling and 
associated technical work as part of the upgraded and expanded BFS. 
 
The Mineral Resource is wholly contained within a graphitic schist unit, with 
barren gneissic rock units in the hanging wall and footwall to the graphitic schist 
unit. 
 
The geo-technical work included the benefits of recently completed geophysical 
surveys (VTEM and Magnetic) and detailed review of the Epanko mineralogy. 
 
The 7,734m drilling campaign completed in 2016 confirmed both the continuity of 
graphitic mineralisation within the June 2015 resource envelope and allowed the new 
resource envelope to be extended 500m to the south in the Western Zone (refer to 
Figure 2). 
 
All results from the 2016 infill and extension drilling campaign have been 
incorporated within the updated Mineral Resource estimate. A summary of significant 
assay intersections from the remaining 23 holes are given in Table 1 based on using 
an 8% TGC cut-off, a minimum interval length of 2m and allowing up to 2m of 
internal waste. 
 
Of the 4km strike identified at the Western Zone by the VTEM survey, only 1.13km 
has been drilled on the Western Deposit which remains open at depth with the 
deepest reported graphite intersection at 200m. 
 
The high conductivity identified in the VTEM survey highlighting the potential for 
the delineation of additional mineral resources along strike and at depth in the 
Western Zone and along strike in the Eastern Zone. 
 
The Western Zone currently accounts for approximately 55% of the current mineral 
resource but has potential to supply significant tonnages of additional graphite 
mineralisation if required. 
 
*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 by CSA Global. 
 
The graphite concentrate is amenable to standard metallurgical recovery processes 
and metallurgical characteristics are considered to provide Epanko with significant 
competitive and commercial advantages (refer announcement 23 July 2015). Recent 
testwork reported has confirmed the graphite mineralisation is suitable for the 
'expanded' and 'spherical' battery market. 
 
Kibaran has secured binding offtake and sales agreements for 100% of its base case 
production with three leading graphite market participants across traditional and 
emerging battery markets. Figure 4 summarises the agreements. 
 
*MINERAL RESOURCE ESTIMATE* 
 
*Epanko Geological Background and Interpretation* 
 
The Epanko Deposit is located within neoproterozoic high grade mafic and felsic 
granulites, gneiss and migmatites, interlayered with amphibolites, marble 
quartzite, schist and mylonite. Epanko host rocks consist of 
biotite-carbonate-graphite schists, with gneiss, marble and late 
quartz-feldspar-carbonate veining forming the footwall and hanging wall to the 
graphitic schist unit. The gneiss is the dominant unit within the prospect, 
consisting of amphibole, biotite and carbonate with trace graphite in places. 
 
A dolomitic marble is located in the footwall of the mineralisation, to the east of 
the Eastern Zone. The footwall of the mineralisation-bearing host rock is a 
biotite-carbonate-graphite schist, occasionally containing significant quantities 
of graphite. The mineralisation is hosted within a graphitic schist, which is 
dominantly light grey, and in places porphyroblastic (Cheetah rock), strongly 
brecciated and dark coloured. Coarse flake graphite has been observed within the 
graphitic schist. The host rocks generally strike in a northerly direction, with 
varying east and west dips. 
 
A geological fact map was used to control the strike and dip of the mineralisation 
interpretations. The Western Zone is interpreted to have a northerly strike and in 
part is overturned with steep westerly and easterly dips. The Eastern Zone is 
interpreted as a recumbent fold which has been refolded and has a moderate plunge 
to the south west (Figure 5). In section the flat limbs of the fold have a shallow 
dip to the west. The mineralisation domains were modelled using the orientation of 
the host stratigraphy to guide the geological interpretation. 
 
The TGC interpretations were based upon a lower cut-off of 5% TGC, geological 
interpretations of mineralised outcrop and trenches, and logging of diamond drill 
core and RC chips. The TGC domain is coincident with the graphitic schist domain. 
The Mineral Resource model consists of three zones of TGC mineralisation, with a 
single zone in the Western Lode and two zones in the Eastern Lode (the recumbent 
fold and a separate sub-vertical zone). Mineralisation domains were encapsulated by 
means of 3D wireframed envelopes. Domains were extrapolated along strike to half a 
section spacing or if a barren hole cut the plunge extension before this limit. 
 
*Mineralogy and Metamorphism* 
 
A detailed mineralogical study of the Epanko rocks in order to determine the timing 
of mineralisation and key metamorphic events was completed by CSIRO (Perth). 
 
CSIRO has confirmed the graphitic rock has undergone extreme metamorphism with the 
mineralogy consisting predominantly of calc silicates. At Epanko scapolite (a calc 
silicate mineral) forms porphyroblastic aggregates which give the rocks a "cheetah" 
like texture as shown in Figure 3. 
 
The commercial benefit of this favourable mineralogy is an easily liberated 
graphite concentrate from a low cost simple process that is saleable graphite 
without further processing steps. Other key benefits include: 
 
- High percentage of large flake and higher carbon grade 
 
- Low levels of in-situ deleterious elements 
 
The degree of metamorphism determines the graphite crystallinity and it is 
important to recognise this provides its physical and industrial properties. 
 
A favourable mineralogy ultimately determines recovery and quality which drives 
strong project economics. 
 
*Drilling Techniques* 
 
The Mineral Resource estimate is based upon results derived from diamond drilling 
(triple tubed HQ diameter core), RC drilling and trenching. 
 
*Sampling and Sub-sampling Techniques* 
 
Diamond core (if competent) was cut using a core saw. Where the material was too 
soft it was left in the tray and a knife was used to quarter the core for sampling. 
Trenches were sampled at 0.5m intervals, these intervals were speared and submitted 
for analysis. RC samples were collected by a riffle splitter using a face sampling 

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April 03, 2017 02:51 ET (06:51 GMT)
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