What the Analysts Say
WHAT THE ANALYSTS SAY: Interesting news and views from across the Resource Analyst universe.
Website: www.breakawayresearch.com
Company: Kibaran Resources (ASX: KNL)
Kibaran is an ASX-listed graphite explorer and developer, concentrating efforts in Tanzania.
Its key project is the Epanko graphite deposit, within the broader Mahenge project area.
Having recently completed a Scoping Study, activities are now concentrated on moving to feasibility and then construction in early 2016.
The second project, Merelani-Arusha, is located adjacent to the previous producing Merelani graphite mine, which now concentrates on producing Tanzanite, a rare gem stone.
Kibaran are currently in negotiation with the owners of the mine, TanzaniteOne Mining Limited (TML) (a wholly-owned subsidiary of AIM-listed Richland Resources Limited) and Tanzania’s State Mining Corporation (‘STAMICO”) via their STAMICO-TML Joint Venture, with a view to combine the relevant companies’ assets by way of a JV and restarting graphite production.
The recently completed Scoping Study for the Epanko graphite deposit in southern Tanzania has, with an NPV of US$213 million, returned excellent results, indicating a long term, robust project with substantial upside through both resource and planned production expansion.
A key to the project is the likely quality of the graphite concentrate – testwork indicates the production of low contaminant, large flake graphite suitable for all applications, including the production of the value added expanded and spherical forms, which should command a premium price.
The quality is superior to that of most other ASX-listed graphite hopefuls.
The company will now move forward to a Feasibility Study, and is looking to fast track a relatively modest initial development with potential for expansion down the track.
The Merelani-Arusha project in Northern Tanzania is also a potential company-maker in its own right, with significant high grade graphite mineralisation close to a historically operating mine that could become a second producing asset for Kibaran.
Website: www.hartleys.com.au
Company: Predictive Discovery Ltd (ASX: PDI)
Maiden high grade resource at Bongou
Predictive Discovery recently announced a maiden JORC resource estimate for its Bongou gold deposit at the Bonsiega project in Burkina Faso.
The Bongou maiden resource estimate is 2.2 million tonnes (Mt) at 2.6 grams per tonne for 184,000 ounces (0.8g/t cutoff) with a high grade portion of 1.1Mt at 3.8g/t for 136,000 ounces (2g/t cutoff).
Bongou is a thick, steeply dipping gold mineralised granite body with an average width of approx. 30 metres making it amenable to bulk tonnage open pit mining.
The Bongou deposit remains open at depth and to the southwest.
The current resource estimate for Bongou demonstrates a grade, tonnage profile amenable to a potentially high margin gold project although additional scale is required.
As such PDI is now focused on identifying further mineralised granite bodies within close proximity to Bongou and within the Samira Hill Greenstone Belt.
Great start, now we look for more of the same
We see PDI’s maiden resource at Bongou as a good start for the Bonsiega project.
The project has potential for multiple ‘Bongou-type’ discoveries.
Drilling in the next field season will be directed at high grade targets within 20 kilometres of Bongou.
If PDI can make further ‘Bongou-type’ discoveries it could move the Bonsiega project towards a potential development scenario.
We look forward to PDI following up a number of granite-hosted gold prospects at Bonsiega that have shown potential for further discoveries.
The Bongou maiden resource compares well to PDI’s West African focused peers.
The high grade at Bongou sees PDI well positioned with one of the higher grade deposits of the entire ASX-listed West African gold sector, albeit at lower tonnes.
Further discoveries of a similar type would add the tonnes necessary for PDI to break away from its peers.
With an EV of approx. $3.7 million PDI is highly leveraged to the potential for further discoveries of high grade ‘Bongou-type’ deposits.
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