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To: LoneClone who wrote (105834)	3/16/2014 9:56:08 AM
From: LoneClone	Read Replies (1) \| Respond to of 196573

Kibaran Resources to upgrade graphite resource at Epanko, Tanzania Monday, March 10, 2014 by Proactive Investors proactiveinvestors.com.au Kibaran Resources has kicked off graphite drilling at Epanko, Tanzania Kibaran Resources ( ASX:KNL) has commenced drilling at the Epanko graphite deposit, within its Mahenge project in Tanzania, to upgrade the existing resource to the Indicated and Measured categories. This will also allow the company to report its 2013 Scoping Study findings and start work on a Feasibility Study that will progress the project towards a development decision. Epanko currently has an Inferred Resource of 14.9 million tonnes at 10.5% total graphitic carbon, which covers just 20% of the project area. Drilling will target two areas where graphite mineralisation has previously been identified, and is expected to take 2 months. These areas are where shallow, thick, robust zones of high graphite mineralisation have previously been identified and within the western zone between existing drilling and where the company reported its best trench result measuring 117 metres at 10.0%TGC. Epanko The 100%-owned Epanko deposit is located within the Mahenge Graphite Project. Kibaran's scoping study for Epanko was based on an annualised process rate of 200,000 tonnes of graphitic feedstock at a grade of 10.5% Total Graphitic Carbon. This should produce around 20,000 tonnes of graphite concentrate each year, consisting of 21.6% large flake, 52.2% medium flake, and 26.2% fines. Ongoing feasibility studies are now aimed at refining and upgrading this estimate. The company had also in late December 2013 signed a binding offtake agreement with a sophisticated European graphite trader (EGT). The off-take agreement to purchase 10,000 tonnes of flake graphite concentrate per year, over a 5 plus 5 year period, provides an independent endorsement of the quality and commercial appeal of graphite at the Epanko deposit. The trader also has the right to subscribe for 5 million shares in Kibaran at $0.10 per share to raise $500,000, and to maintain its equity level in future funding. Graphite is regarded as a critical material for future global industrial growth, destined for high technology applications including nuclear reactors and lithium-ion battery manufacturing. Analysis Kibaran’s drilling program is a key step towards upgrading the existing Inferred Resource of 14.9 million tonnes at 10.5% TGC to the Indicated and Measured categories, allowing it to report on its 2013 Scoping Study findings. This is based on an annualised process rate of 200,000 tonnes of graphitic feedstock at a grade of 10.5% Total Graphitic Carbon. This should produce approximately 20,000 tonnes of graphite concentrate each year, consisting of 21.6% large flake, 52.2% medium flake and 26.2% fines. In addition to Kibaran's graphite interests, its Kagera Nickel Project remains underexplored and is located along strike of Xstrata's Kabanga nickel deposit, also in Tanzania, considered to be the largest undeveloped, high grade nickel sulphide deposit in the world. With an advanced graphite project and a nickel exploration asset along strike from Xstrata's Kabanga, Kibaran's current valuation of $14 million looks primed for appreciation - given news flow and catalysts ahead. Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.