Post this on the DT thread or SYR thread, might stir a bit of...

Post this on the DT thread or SYR thread, might stir a bit of interest :)


Many are looking at Castle Minerals (CDT) and wondering whether it could well be the next Syrah Resources (SYR), another little explorer which has stumbled onto a graphite deposit in Africa. It would be a good thing, because Syrah’s shares have increased more than nine fold in the past eight months.

These thoughts seem to be on Castle Mineral’s chief executive Michael Ivey’s mind when he tells Under the Radar that his company will have a resource from its “Wa” project in north west Ghana within 90 days. He doesn’t hold back on its promise, either:

“This is potentially a world class graphite occurrence and could be one of the highest grade mines in the world.”

Graphite is certainly in at the moment. Its price has more than doubled in the past four years, and supply is restricted because 70 per cent of it comes from China. It is predominantly used by battery makers.

But just remember, there is a big difference between drilling up a resource of carbon and producing that carbon to a graphite specification that can be sold.

Still, it seems the rewards are there, even well before the production stage. Syrah now has a market cap of $117 million and is still very much an explorer. What caught the market’s imagination has been its focus on graphite in West Africa.

Like Syrah, Castle started as just another gold explorer scratching around Africa. Ivey led the team to Ghana in 2006. On the gold front, it is doing well. Castle has actually come out with a resource, albeit a small one, of 267,000 ounces.

There is no doubt that this is too speculative for Radar’s portfolio, but it is one to keep an eye on.


http://www.undertheradarreport.com.au/