434 meters of graphite strike, page-5

Malagasy Minerals' stunning 434m graphite intersection with partner Energizer Resources

Tuesday, June 05, 2012 by John Phillips

"Malagasy Minerals (ASX: MGY) has returned a stunning graphite intersection from the Green Giant graphite joint venture in Madagascar, and with the markets current insatiable interest in graphite plays - the last trading price of $0.087 seems unlikely to hold.

Malagasy's partner Energizer Resources Inc (TSX: EGZ) provided the update to the market that drilling had intersected 434 metres of graphite mineralization at the flagship Molo deposit.

In an interesting move, Energizer said that in normal circumstances the company would not issue a press release describing mineralization without accompanying assay data - however, due to the wide intercepts of graphite mineralisation intersected, the company deems this information to be material.

Samples have already been sent for assay, with results expected in six weeks.

Importantly - previous metallurgical analysis conducted at two different laboratories have confirmed that the Molo deposit contains jumbo flake (i.e. +50 mesh) graphite at an average purity of 93% C and can be easily liberated through simple crushing.

Why these results are so important is due to graphite stocks taking centre stage recently with graphite being classified as a “critical mineral” by most western governments.

Currently the world's users depend on supplies from China, Brazil and India, which produce nearly all of the world’s graphite.

Highlighting that the latest intersection is not a one off, just last month drilling returned high-grade graphite over large widths at Molo including 106 metres of graphite mineralisation at 8.44% carbon, including 37 metres at 11.17% carbon.

Energizer is the operator of the project with a 75% interest, with Malagasy 25%.

In addition, Malagasy retains a 100% interest in an inferred 110 kilometre strike of graphite rich schist trends identified immediately adjacent to the east of Green Giant, which is currently being mapped and sampled by Malagasy, prior to samples being sent for assay and possible metallurgical testwork."

http://www.proactiveinvestors.com.au/companies/news/29713/malagasy-minerals-stunning-434m-graphite-intersection-with-partner-energizer-resources-29713.html

For the less technical investor, this sums up the quality of the drilling results. Love the headline too.