PSC gets more time at Chiliogali

Published at Feb 18, 2016, in Small Caps

Prospect Resources (ASX:PSC) will have another month to decide whether or not to take up a key graphite license in Tanzania after it extended the option window on the project.

Back in November PSC told investors that it had acquired an option on the Chiliogali project in Tanzania, diversifying away from its more traditional base of gold projects in Southern Africa.

At the time, the option had a three-month window in which PSC could elect to take up the project, but PSC and current owner ASAB Resources have decided to extend the option agreement by another month.

The initial exploration on the project has been positive, with early work finding graphite of up to 1000 microns, comfortably considered to be in the jumbo to super-jumbo range.

The testing also found that there would be little issue in liberating the graphite from the ore, with it finding that the graphite was not intergrown in the quartz – which can be an issue for some graphite projects.

Previous chip sampling from trenches at the project brought up grades of:

Peak grade 33.2% TGC

150 samples > 5% TGC, with

114 samples > 10% TGC

41 samples > 20% TGC

At this stage the project is still in the very early exploration phase, but PSC is ultimately hoping that the project’s location relatively close to the Mtwara deepwater port will help the economics of the project.

The project is about 180km west of the port, which has access in from the well-maintained Masao-Lindi-Mtwara road.

The company has claimed that in the limited metallurgical test work done to date at the project, that concentrates of more than 98% are possible when undergoing floatation work.



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