mgy update

Malagasy Minerals (ASX: MGY) is readying to make an announcement regarding a joint venture partner announcement on the Molo graphite project in Madagascar, with the ASX granting the company a trading halt - with its shares placed in pre-open.

Toronto-listed project operator Energizer Resources (OTCBB:ENZR) (TSE:EGZ) had last night reported that it had achieved an ultra-high purity graphite concentrate of greater than 99.9% graphitic carbon from preliminary metallurgical tests at Molo.

The concentrate was achieved in a first-pass, single stage hydrometallurgical purification test done by SGS Canada and comprised of an average of five repeat assays on the concentrate over two days

The tests were done to analyse the ability to upgrade the Molo graphite to an ultra-pure concentrate, with Energizer now able to begin the development of a comprehensive hydrometallurgical process flow sheet as part of a full feasibility study of the project.

The joint venture had in February released a Preliminary Economic Assessment that assigned the project an NPV 10 of US$342 million, or US$85 million net to Malagasy’s 25% interest.

It also identified the potential for the project to be fast tracked into production with a defined “early-mover’ opportunity within the emerging graphite industry.

Partner Energizer Resources is currently carrying out a full Feasibility Study that focuses on enhanced beneficiation to obtain battery grade material with a target purity level of >99% carbon.

More recently, Malagasy had in June confirmed the potential for significant deposits of high-grade graphite at its wholly-owned Ampanihy Project that could have synergies with Molo, which is just 10 kilometres away.

Composite rock chip samples had returned carbon results of up to 37.8%. This had identified three priority areas comprising multiple lenses of graphite that are worthy of additional assessment.

Indicated resources at the Molo deposit total 83.99 million tonnes, grading 6.36% graphitic carbon with an Inferred resources totalling 40.32 million tonnes grading 6.3% graphitic carbon.

The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Thursday 1st August 2013.


http://www.proactiveinvestors.com.au/companies/news/46133/malagasy-minerals-to-update-joint-venture-for-molo-graphite-project-46133.html