Mozambi gets speeding ticket on Namangale buzz
Mozambi Resources (ASX:MOZ) has been pulled up by the ASX after a sharp rise in its share price today.
At the start of trade, MOZ was trading at 4.5c before spiking 15.5% higher to 5.2c in the afternoon. Over 23 million MOZ shares had been traded before the ASX gave the company a so-called ‘speeding ticket’.
In response to the query, MOZ said the buzz surrounding its Namangale graphite play in Tanzania was driving the buy orders.
“Recent results at the Company’s [MOZ] new discovery at Namangale indicate based on visual logging that very thick mineralisation has been extended to 1.2km in strike length, and mineralisation remains open to the North and South. Planned drilling continues to be fast tracked at Namangale in order to define the Company’s maiden JORC Resource in the coming weeks,” it said.
MOZ also said the first assay results from that drilling were due back “in the coming week”.
Mozambi in Tanzania
Having switched its business focus from Mozambique to Tanzania earlier this year, MOZ has been exploring at its Tanzanian tenements since June.
Steady exploration in the form of drilling, trenching and assaying led to MOZ confirming that of 15 holes drilled at its flagship Chiwata prospect in Tanzania, all 15 had struck high grade mineralisation.
The news didn’t stop there for MOZ with the news that it had discovered a major new graphite discovery at an adjacent tenement, Namangale, in late October.
MOZ drilled a total of 12 holes at Namangale with large intercepts of up to 100m hits. These included hits of 100m, 94m, 75m, 73m, 47m, and 35m over an area measuring 960m in width.
The majority of mineralisation was logged as medium and high grade with coarse flake graphite, according to MOZ.
After discovering Namangale in October, MOZ then extended its potential earlier this month, with the effective strike length at Namangale going from 800m to 1.2km.
This drilling program has driven recent gains in MOZ in recent times, and with a maiden JORC resource at Namangale in the wings, MOZ theorised that this cou;d be behind the recent rise.
At the time of writing, MOZ shares were trading at 5.5c, 25% higher since Friday’s close.
The Namangale Prospect is contained in one of the areas picked up by MOZ as part of a deal struck with a local mining company back in September.
It picked up the prospect for an initial $104,000 in cash, with it also picking up three other tenements.
A number of resource companies have declared resources nearby, including fellow ASX-listed company Magnis Resources (ASX:MNS), which has a project 60km to the north.
A key geograpic belt runs through MOZ’s tenements and extends south into Mozambique, with the belt being tapped by the likes of Syrah Resources (ASX:SYR) and Triton Minerals (ASX: TON), which have both identified graphite deposits of over 1 billion tonnes.