I put this together for my own peace of mind. I have endeavoured to accurately reflect announcements made by KNL and apologise for any errors or omissions. I have only extracted what I regard as the key points of each announcement and others may place emphasis on other things that were said.
24 July 2012
• Metallurgical sample taken from the Merelani-Arusha Graphite project returned a head-grade of 17.1% total graphitic carbon (“TGC”)
• Sizing analysis of the AMP_MT_001 sample in question showed highest graphite distribution in the -4mm to +2mm range, indicating the presence of coarse graphite
8 August 2012
• 35 rock chip samples from the Merelani-Arusha Graphite Project returned results ranging up to 25.5% TGC and averaging 8.1% TGC
• A further 15 rock chip samples from the Mahenge project averaged 15.4% TGC
• RC drilling underway at Mahenge with drilling at Merelani-Arusha to follow
15 August 2012
• RC drilling at Mahenge has intersected high grade graphite mineralisation at every hole
• Initial RC holes at Ndolo confirm historical widths over greater strike length than previously reported
• Downhole prospects have recorded up to 144 metres of graphite mineralisation at Ndololo prospect
• Mineralogy shows massive flake graphite greater than 2,000 micron (+2mm) with final metallurgical report expected in 2 weeks
22 August 2012
• RC hole has intersected 168 metres of graphite mineralisation at the Ndololo prospect
• MHRC012 is 250 metres along strike of MHRC011 which intersected 144 metres of graphite mineralisation
• The metallurgical report for bulk samples from Ndololo and Merelani-Arusha are expected within 10 days
4 September 2012
• Further three RC holes encounter graphite mineralisation over entire drill hole length
• One hole recorded 164m of graphite mineralisation
• New holes are up to 1,250 metres from MHRC012 hole (which reported 168m of mineralisation)
• Exploration tonnage potential now appears to be of global scale
• The following RC intersection data was provided for holes drilled exclusively at Ndololo (Table 1):
1. MHRC_15: Graphite mineralisation of 164m
2. MHRC_014: Graphite mineralisation of 143m
3. MHRC_013: Graphite mineralisation of 146m
4. MHRC_012: Graphite mineralisation of 168m
5. MHRC_011: Graphite mineralisation of 144m
6. MHRC_010: Graphite mineralisation of 82m
7. MHRC_009: Graphite mineralisation of 66m
8. MHRC_008: Graphite mineralisation of 72m
5 September 2012
• Flotation recovery of 94.8% total carbon for -1.7mm at Ndololo
• Metallurgical results, combined with recently reported drilling intersections confirm the potential of the Ndololo graphite prospect
• Indication that exceptionally large flakes can be recovered with 26.7% total carbon recovered at -4.0mm
• See Table 2 “Head Grade Analysis”:
1. Merelani-Arusha Project / Sample AMP_MT_001: 17.1% TGC with 24.7% TGC in the -1mm to +500um screen size
2. Ndololo Project/Mahenge Project / Sample MHP_MT_001: 14.6% with 23.5% TGC in the -1mm to +500um screen size
11 September 2012
• Last two holes drilled in programme has now intersected greater than 200m of graphite mineralisation
• RC hole in MHRC016 has intersected 218m of graphite mineralisation from surface
• The RC intersection data provided for holes drilled exclusively at Ndololo included the following (Table 1):
1. MHRC_016: Graphite mineralisation of 218m
2. MHRC_015: Graphite mineralisation of 212m (up from 164m in 4 September announcement)
• Geological logging continued to identify large flake graphite
12 September 2012
• John Clarke appointed as Executive Director
16 October 2012
• Update provided for the first 8 RC holes drilled at the Mahenge Graphite Project
• 19 holes drilled to date with a further 5 holes planned
• Assay results received for the Kasita Prospect (MHRC_001 to MHRC_005) and Ndololo Western Zone (MHRC_010 to MHRC_012). Results included, amongst others:
1. MHRC_010: “No significant result” (compared to announcement of 4 September reporting graphite mineralisation to 82 metres)
2. MHRC_011: A 25 metre graphite mineralisation was reported (compared to the announcement of 4 September reporting graphite mineralisation of 144 metres) with 4.7% TGC.
• “Whilst the Company was expecting to encounter large widths of higher grade graphite mineralisation, significant downhole widths of low grade graphite mineralisation grading between 0.1% to 1.0% were received. The Company has concerns over the potential loss of graphite through the process of RC drilling…”
• “When the Company was planning its initial drill programme, the most prospective areas were considered to be the Ndololo Eastern and Central zones.”
So, my own personal take on all of this is as follows:
1. The more significant prospects are yet to be reported on. These results were extremely disappointing but do not necessarily write-off KNL as a graphite prospect.
2. Management needs to promptly advise holders of how the results on holes MHRC_010 and MHRC_011 differed so significantly from expectations established in prior announcements.
3. This stock faces an uphill battle to recover investor confidence. First we saw sp slides on what was ostensibly good news, then a CR at 0.35 which surprised a few people, and now results that run contrary to what the market was anticipating having regard to prior announcements. It is not "game over" but KNL needs to manage market expectations and under-promise/over-deliver on subsequent results.
No criticism of anyone intended, including management (the blame game is not much good to any of us now) and welcome other people's comments on this post generally.
As I have said in prior posts, I have lost so much I am going to hold for the Ndololo Central and Eastern Zone results. Each to their own and good luck whatever you decide to do.
KNL Price at posting:
13.0¢ Sentiment: Hold Disclosure: Held
(20min delay)