Green Rock Energy advances graphite due diligence

GREEN Rock Energy's first phase of on-site exploration due diligence at Mahenge North Graphite Project in Tanzania is due to be finalised this week.

A total of 570 metres of trenching was completed, consisting of 400 metres of new trenches across Epanko North lodes and 170 metres of cleaning and reviewing historic trenches on these lodes.

Mapping and trenching indicates that graphite mineralisation within the tenement extends at least 3.5 kilometres on the Epanko west lode and 1.5 kilometres on the Epanko East lode.

These strike lengths will most likely increase with further trenching, with potential to link to the Ndololo lodes to the north. Importantly, large flake graphite has been consistently observed throughout the two graphitic lodes.

Trench samples from Epanko North prospect have been transported to Mwanza for preparation, before being flown to Laboratories in Australia for analysis. Assay results are expected early to mid September.

GRK's tenure covers 292 square kilometres over one of the best graphite districts in the country with favourable characteristics for the discovery of additional large scale graphite mineralisation.

Its Mahenge North exploration licence is located directly to the north of the Epanko Graphite Resource held by Kibaran Resources (ASX:KNL) which contains a JORC Inferred Resource of 14.9Mt at 10.47 per cent TGC.

GRK has an objective to increase its graphite tenure in Tanzania, and given Kibaran's success, GRK's present market valuation of $8 million may offer upside.

Earlier exploration at Mahenge confirmed the presence of a 2 kilometre extension of Kibaran's Epanko graphite deposit, and surface trenching and sampling at the Epanko North prospects indicates that there are 3 bands of graphitic mineralisation.

Work is also underway at the Ndololo Graphite Prospect located in the northern sector of the licence, where the objective is to review previous drill holes by Kibaran and determine potential thickness, strike and lateral extensions.

Late last month, GRK placed 213 million shares at $0.003 to existing and new institutional investors, including Copulos Group and Fosters Stockbroking, raising $639,000.

SOURCE: DAILY NEWS

• 348