merelani - strategic graphite province

Merelani - Strategic Graphite Province
HIGHLIGHTS:
• Exploration Target of between 60Mt and 200Mt of graphitic schist, grading between 9.0% and 12.0% TGC at 100% Kibaran owned Merelani Prospect located 15km east of Richlands’ historical graphite mine.
• Strategic consolidation of historical graphite mine and Kibaran’s graphite project supports Merelani being a World Class graphite province.
• MoU with AIM listed Richland to consolidate graphite assets extended to finalise terms for a binding agreement.

Kibaran Resources Limited (ASX: KNL) is pleased to report that independent consultants have identified a substantial Exploration Target (as defined under JORC 2012) for Kibarans’ Merelani Prospect.
The Merelani province in Tanzania is a unique geological setting and is the only known occurrence of the rare gemstone, Tanzanite. The geological setting provides an explanation for the occurrence of such large flake graphite in the region.
The Merelani graphite mine commenced operations in 1995 and produced 6,776 tonnes of graphite.
Graphite sales via an offtake agreement were through Harbison-Walker Refractories, located in the USA. Mineralisation was initially identified to be sufficient for a 40 year operation at a production rate of 15,000 tonnes per annum of high-grade, large flake graphite of 97-98% carbon. The last shipment of remaining stockpiled concentrate in 1998, included a percentage of 99% carbon which was produced through natural attrition and not chemical treatment.
It’s important to note that the current graphite market and the company’s binding offtake agreement is seeking 94-97% carbon and a high distribution of large flake greater than 180 micron.
The Merelani graphite mine represents the largest historical production of graphite in East Africa and only a fraction of the occurrence was mined prior to mine closure. Kibaran has recently announced a 90 day extension to the Merelani MoU with Richland and both parties are now finalising terms for a binding agreement to recommence graphite production (refer announcement dated 5 May 2014).
Independent geological group CSA Global Pty Ltd, have estimated a sizeable Exploration Target of between 60Mt and 200Mt of graphitic schist, grading between 9.0% and 12.0% total graphitic carbon (“TGC”), above a cut-off of 5% TGC within the Kibaran graphite prospect which is located 15km to the east if the historical graphite mine.
The potential quantity and grade of the exploration target is conceptual in nature and there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource calculated in accordance with the JORC code.
The estimate is based on exploration and geological work which Kibaran completed at the Merelani Project.