Green Rock Energy (ASX:GRK) should trade higher after initial exploration at its Mahenge North Graphite Project in Tanzania confirmed the presence of a 2 kilometre extension of Kibaran Resources' (ASX:KNL) Epanko graphite deposit.
Surface Trenching and sampling at the Epanko North prospects indicates that there are 3 bands of graphitic mineralisation.
Work is also underway at the Ndololo Graphite Prospect located in the northern sector of the licence, where the objective is to review previous drill holes by Kibaran and determine potential thickness, strike and lateral extensions.
Previous drill results included high grade intervals of 13 metres at 10.8% TGC and 11 metres at 11.2% TGC.
GRK's tenure covers 292 square kilometres over one of the best graphite districts in Tanzania with many known graphite occurrences and favourable characteristics for the discovery of additional large scale graphite mineralisation.
Its Mahenge North exploration licence is located directly to the north of the Epanko Graphite Resource held by Kibaran which contains a JORC Inferred Resource of 14.9Mt at 10.47% TGC.
Given Kibaran's success, GRK's present market valuation of $9 million may offer upside.
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