Metals of Africa declares 61.6Mt resource

Published at Nov 16, 2015, in Mining

Metals of Africa (ASX:MTA) has just become a player in the world of graphite, announcing a maiden resource of 61.6 million tonnes at 10.3% total graphitic carbon, and it has drilled less than 5% of its targets.

In a market release this morning, it outlined its maiden JORC resource at the Montepuez project in Mozambique, with an indicated mineral resource of 27.6Mt at 10.4% TGC and an inferred resource of 34.1Mt at 10.2% TGC.

The resource remains open along strike and at depth, and MTA has drilled less than 5% of targets at the project.

The JORC resource positions MTA as one of the leading resource holders in the region, and backs up managing director Cherie Leeden’s previous claim that the company was undervalued in the region.

By comparison, world-beater Syrah Resources (ASX:SYR) has a resource of 1.15 billion tonnes at 10.2% TGC, while fellow company Magnis Resources (ASX:MNS) has a resource of 156Mt @ 5.2%. SYR has a current market cap of $737 million while MNS has one of $135 million.

In comparison, MTA has a market cap of just $11.75 million before the start of trade today.

A comparison of graphite players in the region

A comparison of graphite players in the region

“This impressive maiden resource positions Metals of Africa as a major player in the global graphite space,” Leeden said of the resource declaration.

“Our flake size and quality is exceptional and our deposit clearly hosts the best ratio of large and jumbo flake of graphite deposits in Mozambique.”

Initial test work indicated ‘very coarse’ flake sizes, returning 56.3% for large and jumbo flakes.

She also confirmed that offtake agreements were under discussion “with a number of parties”, and MTA has started putting the numbers together on ultimate commercialisation via a pre-feasibility study.

It said that it was studying the possibility of exporting its product from the nearby ports of Pemba and Nacala, while it has also investigated the possibility of setting up a spherical graphite plant in the US.

Elsewhere, it said that drilling at its Balama Central project was ongoing and it should be in a position to declare a resource there by February or March next year.

Shares in MTA are up 15.7% to 8.1c in intraday trading.

More on Metals of Africa’s graphite play

Its flagship project is the Montepuez Central project in the Cabo Delgado region, and is made up of three key deposits being the Buffalo, Elephant, and Lion prospects.

Meanwhile, it is also drilling at the Balama Central project.

The location of MTA's projects in Mozambique

The location of MTA’s projects in Mozambique

That project is along strike (on electromagnetic data) to the projects being advanced by SYR and Triton Minerals, with MTA recently confirming rock chip samples taken at the project were high-grade.

The chip samples brought up grades of up to 17.55% TGC and 0.364% Vanadium.

Its flagship graphite project is at the Montepuez Central Graphite Project in the prolific Cabo Delgado graphite province.

So far, it has found three key prospects at the Montepuez Central Graphite Project including the Buffalo, Elephant, and Lion prospects.



S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Thanks for subscribing!