High-Quality Tanzanian 20,000-Ton Graphite Project Near Take Off

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Kibaran Resources (ASX:KNL.AX) (Subiaco, Australia) signed a three-month extension to an existing memorandum of understanding (MoU) to consolidate its Merelani-Arusha graphite project with Richland Resources' (OTC:RRCH) (Dar es Salaam, Tanzania) graphite assets in Tanzania.

Both groups are keen to finalize the agreement so graphite production can recommence. Kibaran is completing its due diligence and is working with Richland to finalize the terms of the agreement.

Kibaran signed a binding offtake agreement with a specialized European trader for the sale of graphite in December 2013. The agreement covers the purchase of 10,000 tons of flake graphite concentrate per year over a period of more than five years. This provides an independent endorsement of the quality and commercial potential of the graphite from the mine. Kibaran's fully owned Epanko deposit is located within the Mahenge graphite project.

The scoping study for Epanko was based on an annualized process rate of 200,000 tons of graphite feedstock at a grade of 10.5% total graphitic carbon (TGC). This should produce about 20,000 tons of graphite concentrate a year, consisting of 21.6% large flake, 52.2% medium flake and 26.2% fines. Ongoing feasibility studies are aimed at refining and upgrading this estimate.

Kibaran's drilling program is a key step toward upgrading the existing inferred resource of 14.9 million tons at 10.5% TGC to the 'existing' and 'measured' categories, allowing it to report on its 2013 scoping study findings.

The environmental consultant has completed the scoping study, which will be submitted to the Tanzanian national environmental management council within the next week and the study could be approved by the end of May, allowing the next stage of field work to commence.

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