The Balama mining project in Mozambique is thought to contain a large deposit of high quality graphite, Australian company Syrah Resources said Wednesday in a statement filed with the Australian Stock Exchange.
In the statement Syrah Resources said that it had received the results of 328 samples collected in eight locations of its concession area, as part of a programme designed to detect the best locations for drilling and to collect samples for metallurgical analysis.
The Australian company also said that a drilling programme would begin at the end of April to test some areas with higher quality graphite and to make an estimate of available reserves.
The Balama mining project is located in the Namuno district of Cabo Delgado province, northern Mozambique around 265 kilometres from the port city of Pemba and covers an area of 106 square kilometres.
In November 2011 Syrah Resources bought unlisted Australian company Jacana Resources, through which it took ownership of 11 mining projects in Tanzania (4), Mozambique (3) and two each in Zambia and in Botswana, covering a total area of 5,900 square kilometres with high potential for graphite, vanadium, uranium, coal, rare earths, base and precious metals, and heavy sands. (macauhub)