Bass Metals Ltd: Australia's only graphite producer in Africa going for expansion

2016-11-04

Nov. 3, 2016 - Bass Metals Ltd plans to commence drilling at the adjacent Mahefedok deposit at its Graphmada graphite mine, located in eastern Madagascar. The Mahefedok deposit has been explored since 2014 and results obtained from works including geological mapping, ground geophysical surveys, pitting, trenching and sampling, provide evidence that the Mahefedok deposit may contain regolith hosted flake graphite mineralisation over an approximate strike length of 1.8 km.

The material expansion of existing large to jumbo flake resources is a core component of the company’s strategy to realise the considerable potential of the Graphmada mine.

In parallel to achieving consistent baseline production targets, post budgeted plant refurbishment, Bass intends to establish a broader resource in proximity to the refurbished processing facilities. In addition, Bass intends to commence preliminary exploration of its highly prospective Andapa project.

The company considers the expansion of resource and attainment of consistent production as key to bridging the considerable valuation gap between itself and its listed peers who are currently not in production. Bass intends to materially add to its resource inventory both across its broader tenement package and in direct proximity to the Graphmada mine. In contrast to the majority of its listed peers Bass can provide a direct pathway to market for its resource inventory.

The company plans to estimate a Maiden JORC Resource for the Mahefedok deposit, based on approximately 2,500 m of drilling and resource estimation works to be completed over the next three to six months.

Crofts Drilling Services (a local company) has been contracted to provide the drilling and has already passed safety and equipment inspections. It is currently mobilizing to site. A summary of the drill plan is as follows:

– The initial drill program is 2,500 m

– The depth meters per hole is between 40 and 100 m

– The number of holes is approximately 50

– The drill hole inclination is 90° and inclined approximately 45–50°

– HQ core diameter

– The drill program duration is some three months, dependent on weather.

Bass Metals CEO, Tim McManus: “We are pleased to be commencing this program, as the company will benefit from these brownfield works through developing a larger asset base for its expansion plans, as well as providing additional long-term ore feed for its current operations.

“The team at Bass are excited to be undertaking a project of this significance and we look forward to updating the market with the results of our drilling and subsequent resource estimation works.”

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 graphite mine is situated in eastern Madagascar, approximately 100 km by sealed highway from the export port of Tamatave.

The Graphmada mine hosts four known deposits. Recent mining activities have been focused on the Loharano deposit, while the Mahefedok deposit has also undergone trial mining as part of life-of-mine development studies. The Mahela and Ambatofafana deposits are still to be explored to their full potential.

The graphite at Graphmada is hosted in both weathered regolith and underlying graphitic gneiss, with the grade of graphitic carbon increasing with depth. All mining to date has been very shallow and low cost, with the mining horizon from 1.5 m below surface to a depth of 6-8 m. However, the graphite bearing regolith is known to go to depths of more than 30 m, to the underlying hard-rock mineralisation.

Mineralisation at Mahefedok alone is open along a strike of some 1.8 km and to depth.

The 140-strong workforce uses modern facilities and infrastructure, with an on-site doctor, pharmacy, housing, offices, communications and an advanced analytical laboratory in place.

Also installed on site is a 6,000 t/y product processing plant, with a drying and packaging facility, which the company plans to improve and refurbish to reach nameplate capacity.

Graphmada sold approximately 1,500 t of product in the 2015 calendar year, with a proportion of the product being large flake graphite at 94% or greater purity. The Graphmada brand is synonymous with quality large flake graphite concentrate and is well established in traditional markets, as well as potential to push into new technology markets.