THE BOURSE WHISPERER: Kibaran Nickel has executed a Heads of Agreement for the acquisition of Tanzgraphite Pty Ltd (TGP), a company which has secured options over the Mahenge and Arusha projects.
Kibaran claims these two projects are considered to be prospective for graphite mineralisation.
The combined ground holding for the Mahenge and Arusha projects covers 1,308 square kilometres over previously known graphite occurrences and favourable geological settings for the discovery of new graphite deposits.
The acquisitions increase Kibaran’s land position in Tanzania to 2,173sqkm.
The Mahenge project hosts the Ndololo, Epanko and Kasita graphite prospects.
Location of Tanzanian project. Source: Company announcement
“These projects present an attractive opportunity for us to participate in the exploration and development of graphite in Tanzania, where the company already has substantial exploration expertise from its ongoing exploration of Kagera nickel deposit,” Kibaran Nickel chairman Simon O’Loughlin said in the company’s announcement to the Australian Securities Exchange.
Kibaran said graphite with flake sizes ranging between 1.5 and 8.5 millimetres in size have been observed at Ndololo with similar graphitic schists observed at Epanko and Kasita.
The company said the Ndololo graphite prospect has a potential exploration target of between 3.5 and 7 million tonnes of graphitic schist grading between 10 and 15.5 per cent carbon.
Previous exploration work was conducted at Ndololo in 1945, which reported results of 15.5 per cent carbon and 97.5 per cent recovery of flake graphite.
TGP has a geological team on the ground and previous work carried out at Ndololo was by the former director of the Geological Survey of Tanganyika (Tanzania).
The Arusha graphite project also contains several graphite occurrences within graphitic schists.