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Triton Minerals adds graphite potential at Nicanda Hill satellite

Last updated: 13:43 13 Nov 2015 AEDT, First published: 12:43 13 Nov 2015 AEDT

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New exploration and metallurgical work at Triton Minerals’ (ASX:TON) Nicanda West project in Mozambique has demonstrated a dominant presence of high-purity large to jumbo flake graphite.

Initial drilling at Nicanda West (also known as P66) has helped identify selective zones within a mineralised graphite envelope average up to 12.9% total graphitic carbon (TGC) as well as material capable of achieving battery-specification grade of 97.7%TGC through a simple flotation processes in concentrate production cycle.

Significant graphite mineralization confirmed by drilling included:

-108 metres at 5.1%TGC from 2 to 110 metres end of hole (EOH)
- 197.5 metres at 4.6%TGC from 2.5 to 200 metres EOH (almost entire length of hole)

Nicanda West – which is located 1.2 kilometres northwest from the main Nicanda Hill deposit – has been tested by 11 diamond and three reverse circulation drillholes. Assay results have been received for six of these drillholes.

Importantly, Nicanda West’s close proximity to the massive Nicanda Hill resource allows for the sharing of infrastructure and processing facilities, thus improving overall project economics.

Last month, Triton lifted the measured resource at Nicanda Hill to 33 million tonnes at 12.3% TGC and 0.34% vanadium (V2O5) as part of a massive total resource estimate of 1.4 billion tonnes at 11.1% TGC.

This provides the basis for the 10-year projected life of mine at Nicanda Hill and firms the project’s status as the largest known high-grade flake graphite-vanadium deposit in the world.


Capital raising


The news follows immediately on a move by Triton to generate up to A$11.3 million to define resources at Nicanda West and the Ancuabe graphite project (also in Mozambique).

As part of the funding effort, GMP Securities Australia has agreed to partially underwrite the offer to a value of $4 million subject to conditions precedent, termination events and other terms and conditions customary for an underwriting agreement of its nature.

Funds will also be applied to expansion of a Definitive Feasibility Study (DFS) to include Nicanda West, Ancuabe and a joint venture manufacturing facility in Mozambique and China.

Part of the proceeds will likewise be used to fund the start of construction at this facility with JV partner Yichang Xincheng Graphite.


Analysis

Encouraging initial drilling at Nicanda West together with the consistency of the high-purity large-flake graphite recovered during flotation testwork represents another decisive milestone in the development of Triton’s Mozambique projects.

This adds an important new dimension to the Triton Mozambique Graphite (TMG) product range, which has a wide range of commercialisation options.

The initial assays at Nicanda West have confirmed high-value large flake graphite and supported expectations that the integrated Nicanda mining operation will be able to produce a diverse range of high-quality graphite concentrates.

Also, the wide thicknesses of mineralisation and consistency of grade combined with no substantial overburden present an attractive open pit mining opportunity.

The ambitious funding drive by Triton, meanwhile, underlines the company’s confidence in its Mozambican graphite assets and in the market’s understanding of their strategic importance.

This is well illustrated by a $4 million underwriting commitment from a commodities-focused investment banking firm.

The resource development and DFS optimisation that this funding will enable represent significant potential price catalysts for Triton, which has been identified as undervalued.


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