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Walkabout Resources Ltd discovers new high-grade flake graphite zone

Published: 12:00 18 Oct 2016 AEDT

Walkabout Resources Ltd discovers new high-grade flake graphite zone
Walkabout Resources Ltd has discovered a new exploration zone in Tanzania.

Walkabout Resources Ltd (ASX:WKT) has discovered a new exploration zone with grades of up to 36.6% total graphitic content within the 70% owned Lindi Jumbo Graphite project located in Tanzania.

The new zone is at least 4 kilometres in strike identified 20 kilometres to the east of Gilbert Arc deposit.

The exploration campaign is being carried out in parallel with the advanced project studies currently underway at Gilbert Arc.

Allan Mulligan, managing director, commented:

“Having taken the time to properly assess the regional potential at Lindi Jumbo, we are impressed at the extensive high grade graphite potential across many kilometres of outcrop in the eastern zone.” 

“There are no impediments to the establishment of a second or third phase of project development as soon as we have adequately de-risked phase one of the Lindi Jumbo Project.”


Exploration opportunity

The exploration campaign will enable the company to make informed decisions to potentially scale-up future development on its tenement holding in the region.

Walkabout holds 70% of four contiguous licenses covering 325 square kilometres with an option to acquire the remaining 30% share.

Walkabout’s ongoing regional exploration, mapping and sampling program is proving successful as outcropping, high-grade and large flake graphite schists are confirming the mineralisation potential of the extensive electromagnetic targets.

The board is considering following up with limited drilling once the extensive vegetation cover over the areas has reduced due to seasonal attrition.


Lindi Jumbo Graphite Project

During the June quarter, the company finalised the Integrated Study Level 1 (scoping study), a technical and financial assessment based on the high grade Inferred Resource.

Due to regulations, the technical and financial results of this report are to be used for internal planning purposes only and are not able to be released to the market.

Following a review of the report, the company board unanimously agreed to proceed to the next level of study.

With the current low capex-early cash flow strategy now approved, Walkabout is aiming to enter production in 2017 through a surface mining and processing operation at the site.

Recent test work at Lindi produced a super jumbo, high margin graphite concentrate containing up to 25.7% super jumbo flakes and grades up to 98.85% total graphitic content.

These verified results place the project in a high class of revenue per tonne of saleable concentrate.


Analysis

The regional exploration program at Lindi is proving successful and the potential discovery of a new deposit can act as a second phase but parallel development site.

Knowledge learned from western exploration at and near Gilbert Arc is proving to be directly transferrable to the eastern zone.

High-grade mineralisation is correlating directly with extensive and continuous electromagnetic conductors. 

Outcropping high grade zones will be preferred drilling targets for any follow up exploration.

Walkabout is fast tracking the development of Lindi to take advantage of forecast market conditions for flake graphite deposits with high ratios of large and jumbo flakes.

The company has developed a proprietary processing technique which yields exceptionally high ratios of large, jumbo and super jumbo flakes into concentrate.

This premium product will allow higher than average revenues to be achieved

Metallurgical results have already indicated a basket price for Lindi concentrate valued at US$1,529 to US$2,567.

Furthermore, highly pure natural graphite such as that found at Lindi is suitable for sphericalisation and use in the lithium-ion battery market.

The feasibility study, currently in progress is expected in the December quarter.

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