AMN - MADAGASCAR: Assays confirm graphite discovery

Bass Metals has received confirming assay results for its material exploration success of the Andapa discovery in eastern Madagascar. The accredited laboratory results provide further confirmation of the discovery of three premium large flake graphite targets

Highlights:

• The targets, from 1.3km to 2.1km in extent, are hosted in soft, easily mineable, weathered mineralisation, which indicates significant potential for low cost mining

• The main target, known as Unit 2, revealed Graphitic Carbon (GC) grades up to 7.7% at surface.

A systematic exploration program is being planned over the three graphitic units, including an auger and pitting program with sampling. This will be followed by a potential drilling and sampling program for grade estimation, flake size distribution and metallurgical testing.

Bass Metals’ CEO Tim McManus said: “With further confirmation of this discovery, Bass will begin planning further exploration and develop a project plan for the area. We are pleased not only to confirm our initial results but also learn that our in-house laboratory is able to produce very similar results at a preliminary level, which gives us great confidence in any future testing we conduct in-house, especially our grade control activities.

“For our team at Bass, these results reinforce the fact that we are operating in a globally significant graphite region, with great potential in and around Graphmada. We’ll seek to leverage off our production expertise and market knowledge to look further afield in the region for other mineralisation in which to materially grow our resource base.”

Bass Metals is one of only five publicly listed graphite producers in the world. The company owns and operates the Graphmada large flake graphite mine in eastern Madagascar. The new discoveries are close to the existing mine.

Madagascar has been a recognised producer and exporter of graphite since 1907 and sets the world standard for product quality and flake size.

The Graphmada mine has 40-year mining permits in place, containing four premium quality, large flake, graphite deposits hosted in weathered graphitic gneiss, a soft, easily minable rock that incurs low mining costs. With all associated mining infrastructure and logistics in place, the mine produces and sells a range of graphite concentrates into multiple market segments, to customers in India, the US and Europe.

Generating revenue through ongoing lowest quartile cost production, the mine is being optimised by an experienced management team to 6000 t/y with improved final graphite concentrate grades, in order to grow cash margins. Graphmada also has significant potential for low capital intensity expansion. Bass plans to invest capital to expand production to greater than 20,000 t/y of graphite concentrate sales by late 2018.

The Loharano deposit has provided the bulk of the feed to the Graphmada processing plant and has total JORC compliant indicated and inferred resources of 5.7 Mt @ 4.1% Grade with a 2% cut-off. These resources are to a depth of only 6 m, and mineralisation is known to go to depth with increasing grade, and is open in all directions.

www.bassmetals.com.au