Small Cap Graphite Play

Below is an extract of BSN ASX announcement today:

"All trenches are approximately 1 km apart and are being excavated to test ~10km of the ~25 km
long Geotem anomaly in the northern part of the licence. The three trenches completed to date
have all intercepted significant near surface in situ graphite mineralization. The Graphite visually
shows good flake size which will be sent to the laboratory for testing. The trenching program
follows the recently completed two diamond holes which also intercepted significant Graphite of
up to 95m and 86m respectively........
The Prospecting Licence (PL) covers an area of 830 sq km with a potential graphite mineralization
strike of 25 km within the licence area.
The trenching follows two diamond drill holes that intercepted graphite totaling 95m in Hole One
and 86m in Hole Two at the “Pencil Hill” new Graphite discovery in Botswana (refer ASX
announcement 20 August 2014).
Independent Laboratory Analyses for Diamond Drill Holes:
The independent laboratory results for the two diamond drill holes which encountered significant
Graphite intercepts are still pending. Samples have been forwarded for TGC (Total Graphitic
Carbon) and flake size analysis which will be reported to the market when received."
My Comments:
1. Favourable African country to mine in.
2. Graphite appears to be well spread over EL given trenching 1kl apart.
3. Report refers to flaky graphite
4. Found at shallow depth
5. Awaiting assay results but grades should be good given it is visual in photos.
It looks like BSN can take up to 51% pre an IPO so given current market cap of BSN (around $7m) it offers excellent leverage to the graphite story if assays are good given some of the market caps for African graphite stocks.
Remember all graphite investments are speculative investments so please DYOR.
ASX Announcement of Sept 10th gives good coverage of where BSN are currently positioned.
Regards
Buffett