Syrah Claims Mozambique Graphite Resource is World's Largest

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Syrah Resources (OTC:SYAAF) (Melbourne, Australia) reports that its Balama graphite and vanadium project in Mozambique holds the world's largest graphite deposit, and that the vanadium resource was about six times the size of the world's largest operating vanadium deposit. Balama is located in the Cabo Delgado province in northern Mozambique.

The overall inferred resource at Balama, including Balama West and Balama East, is 1.15 billion tons at 10.2% total graphitic carbon (TGC) and 0.23% vanadium V205, as calculated by the USGS (U.S. Geological Survey). These totals were contained in the maiden inferred resource report. Syrah expects Balama to become the world's least expensive and largest producer, and it believes Balama will be in a position to offer a high-grade and quality product for the fast-growing graphite market.

The Balama East resource deposit is estimated to hold 579 million tons of ore at 10.6% graphite and 0.26% vanadium. In this resource is the high-grade Mepiche zone, with an estimated inferred resource of 145 million tons at 15.1% graphite and 0.43 % vanadium.

The company said that based on the size of the resource and the product mix achieved from metallurgical test work, Balama can cater to demand requirements across all graphite flake ranges for several years. The inferred resource at Balama East far exceeds the exploration target of 300 million to 400 million tons.

The scoping study for Balama West was on schedule and was expected to be released by June. The combined mineral resource update and metallurgy and marketing studies would provide the foundation for a feasibility study, Syrah said.

For related information, see January 29, 2013, article - Australian Companies Turn to Graphite, Graphene as Minerals with Growing Potential.

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