News: OGI Group acquires graphite tenements in Mozambique

OGI Group (ASX:OGL) has acquired a portfolio of six highly prospective tenements in the highly prospective Balama graphite province in Mozambique.

These are all located along geological strike of Syrah Resources’ (ASX: SYR) Balama Graphite Project and Triton Minerals’ (ASX:TON) Balama North Graphite Project.

OGI had secured the tenements through the acquisition of Balama Resources Pty Ltd, making it one of the largest graphite tenement holders in the Balama area

OGI has completed initial exploration work to de-risk assets and prove up graphite mineralisation on the Balama tenements.

Samples have been submitted to SGS Laboratories for analysis with preliminary results expected within the next 4 weeks.

Numerous graphite outcrops have and electromagnetic highs have been identified over the extensive tenement portfolio along strike from the Syrah and Triton’s projects.

Growth in the graphite market estimated at 8.8% CAG up to 2020 due to the increased use of graphite in batteries.

The growth of the battery market is estimated to add an additional 1.4 million tonnes per annum to market demand by 2020.

More than 25 mines producing 40,000tpa graphite will be needed to meet expected demand.

the presence of high grades of associated vanadium (as a by-product), and lower labour and other OPEX costs means that Mozambique graphite mines can reasonably be expected to be more economical and profitable than graphite mines in the rest of the world.

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