Next Investors logo grey

Initial exploration in Tanzania serves up jumbo flake for Prospect


Published 29-JAN-2016 11:51 A.M.


2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

Prospect Resources (ASX:PSC) reports that initial petrographic work at its Chiliogali Graphite Project in Tanzania confirms the presence of ‘in-situ’ coarse graphite flake sized up to 1mm (1000 microns). PSC also published upbeat exploration results earlier this month after acquiring an option on the Chiliogali Project last November.

The discovery is significant because graphite flake size is directly related to final graphite sale prices at market.

In an announcement to the market earlier today, PSC says there is no indication of any issues in liberating the graphite with little evidence of mineral inclusions within the graphite. “There are zones of large graphite flakes that are associated with, but not intergrown with quartz, which should therefore be easy to liberate,” said PSC.

Both these aspects could boost PSC’s exploration success and subsequent Resource definition.

PSC hopes that its Project location and neighboring infrastructure, namely the port of Mtwara, will act as catalysts for strong project economics as exploration continues and moves into the later stages. The Chiliogali Project is around 180km west of Mtwara Port in Southereastern Tanzania, easily accessible from the well maintained Masao-Lindi-Mtwara road.

PSC flake and location

PSC’s Chilliogali Project (left) and ‘in-situ’ graphite flake images (right)

However, PSC did confirm the presence of biotite, an accessory mineral, which makes up less than 5% of the extracted material. “The small amounts of biotite that are present are not intergrown with the coarse graphite, and will not likely [sic] cause problems with flotation.”

All of PSC’s most recent samples have now been sent for metallurgical testing that will likely clarify exactly how PSC’s graphite stacks up in comparison to its regional neighbours in Tanzania. PSC claims that despite only “limited metallurgical test work” being done, it “seems that concentrates of >98% carbon are possible”.

Should PSC be able to prove up high carbon test results as part of its exploration, the micro-capped explorer would place itself in amongst some illustrious peers in the region that are more advanced in their exploration.

The likes of Mozambi Resources, Magnis Resources and Kibaran Resources are all junior explorers currently pursuing graphite exploration in East Africa, close to the richest graphite region in the world – Cabo Delgado in Mozambique.

Geologists strongly believe that veins of graphite schist mineralisation stretch out across East Africa with Tanzania currently a prime location for graphite exploration.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (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 and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.