Bora Bora Resources (ASX: BBR) should trade significantly higher after revealing results from an airborne electromagnetic survey flown over its Matale graphite project, adjacent to the Kahatagaha Graphite Mine in Sri Lanka.
A clear late time electromagnetic anomaly has been defined, which correlates with the position of the operating Kahatagaha mine, which extends into Bora's Matale project.
The most likely source of the anomaly is conductive graphite, with initial interpretation and modelling indicating a depth of 50 metres to 150 metres to the top of the body.
In response to these results, Bora commissioned an independent surveyor to travel to the area to determine the exact boundaries of the mine site relative to Bora's surrounding exploration licences.
This independent survey has confirmed that the VTEM anomaly, most probably caused by extensions of the Kahatagaha Mine’s graphite mineralisation, do in fact extend into Bora's Matale Graphite Project
The Kahatagaha Graphite Mine began production in 1872 and has produced over 300,000 tonnes of graphite at consistent purities above 90% total graphitic carbon.
It is the oldest and largest known ultra-high grade graphite mine in the world, and currently produces a variety of graphite products that range from 91% to 99% TGC.
Bora holds a 75% interest in Matale, and is ideally positioned to export graphite to China, Japan and India.
The company is lightly capitalised at $6 million, before today's share price rise, and retains almost $2 million in cash.
Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.