AMN - MADAGASCAR: New graphite resource at Graphmada

Bass Metals has delivered on its strategy to expand resources at the Graphmada large flake graphite mine in eastern Madagascar with a maiden mineral resource estimated for the adjoining Mahefedok deposit. It contains indicated and inferred resources of 3.5 million tonnes at 4.2% total graphitic carbon (TGC) for 146,200 tonnes of contained graphite.

Mahefedok is immediately adjacent to the Graphmada mine infrastructure and the resources supplement Graphmada’s indicated and inferred resources at Loharano deposit of 5.7 million tonnes @ 4.1% TGC.

The new estimate is in parallel with Bass refurbishing the mine to deliver Stage 1 of 6000 tpa of the highest quality graphite concentrates using industry best practices.

Bass says the result for Mahefedok is an important step towards providing additional shallow, easily mineable long-term ore feed. The deposit is also a significant part of the Stage 2 expansion plans for Graphmada, the installation of a second processing plant to reach annual capacity of 20,000 tonnes, which will see Bass as one of the largest global producers of large flake graphite.

Trenching, pitting, diamond and auger drilling have intersected the Mahefedok mineralisation, and a test pit has been mined over a portion of the mineralisation in the north.

The deposit is within the Graphmada mine area, along strike from the Loharano deposit and within the Toamasina province.

Bass recently signed a sales and purchase MOU for 50% of its forecast Stage 1 premium graphite concentrate production for 2018. The concentrates to be produced from Graphmada will be sold into the refractories, foundries and crucibles markets throughout Europe at a premium in pricing to other market segments such as battery applications.

Possehl Erzkontor GmbH & Co, based in Europe, intends to purchase 3000 tonnes per annum of graphite concentrates from Bass for three years.

Bass CEO Tim McManus said, “Our partnering with a group that has been in operation for more than 100 years is an important strategic development.”

www.bassmetals.com.au