In my opinion Consolidation is Logical....
Revisiting some Data Points I think is very enlightening:
http://www.asx.com.au/asxpdf/20150430/pdf/42y820mn69kdp5.pdf
MRF has come a long way in my opinion...
..........................................................................................................................
Ten Bagger, Friday 18 July 2014
New kid on the graphite block as MRL surges on spicy Sri Lankan assays
http://resourcesrisingstars.com.au/infopage/4998
As the junior resource sector this week continued its Lazarus-like awakening from a multi-year slumber, graphite and nickel stocks remain two of the hottest tickets in town.
The market’s love affair with graphite is underpinned by surging consumer demand for electronics (mobile phones and tablets have around ten times more graphite than lithium, for instance), as well as green energy, medical, mining and high-tech applications such as graphene.
And if state-of-the-art new flexible TV screens made of graphene don’t float your boat, it’s very hard to argue with the share market performance of market darlings such as Syrah Resources (ASX: SYR), whose market cap at a current share price of $5.56 is around $900 million.
Which is why the hunt is on for emerging graphite stories that could provide ground-floor entry points to the sector.
Ten Bagger was fortunate enough to come across one this week – a relatively unknown Perth junior called MRL Corporation (ASX: MRF).
MRL has been quietly beavering away in Sri Lanka, assembling an impressive portfolio of projects covering 6,300 hectares prospective for high-grade, crystalline vein graphite, which is unique to the country.
For those new to the sector, natural graphite occurs in three forms: amorphous graphite, flake graphite and crystalline vein graphite. Sri Lanka is famed for being the only commercial producer of the third category, which is the most valuable and highest quality, typically occurring in veins with a purity of 95-99% carbon.
It reportedly sells for up to US$2,000 a tonne.
By way of comparison, amorphous graphite is the most abundant but occurs at the lowest grades. Syrah’s world-class deposit in Mozambique comprises amorphous graphite.
As the name suggests, high-grade vein graphite deposits return narrow but very high grade intersections.
They can be selectively mined by underground methods. And they can be developed at much lower capital and operating costs than bigger amorphous or flake graphite deposits.
MRL’s game plan is to drill out a series of these sorts of super-high grade deposits on its leases in Sri Lanka and ultimately process them through a relatively simple, centrally located production facility.
If the plan comes together, it could be in production relatively quickly and cheaply, delivering exceptional quality material into a hungry and growing market.
MRL commenced drilling in June, and this week announced final assays from its maiden drill hole. The intersections were exactly as predicted – outstanding narrow high-grade hits of around 1m grading up to 97% Total Graphitic Carbon (TGC).
Managing Director Craig McGuckin said the results
“confirm the presence of extremely high-grade vein graphite within the Bopitya/Pandeniya Priority 1 license…These results will assist in the planning towards conversion of this license into an industrial Mining License following further drilling.”
A second diamond drill hole is currently underway and results will be reported as they come to hand. MRL also said it has agreed to extend its drilling contract by a further 600m to a total of approximately 1,300m.
All of which sounds like plenty of upcoming news flow.
The share market is beginning to take more notice of MRL. The stock has edged up from around 4-5c back in April to 10-12c, closing yesterday at 10.5c. That gives it a relatively modest market capitalisation of around $14 million.
Given that grade is always king in mining (graphite included), the company’s plans to develop a high-grade, low CAPEX operation in a relatively friendly jurisdiction should see it pop up on plenty more investor radars in the coming weeks.
http://resourcesrisingstars.com.au/infopage/4998
..................................................................................................
The past I think is a very good place to revisit. Time will tell....
Breaking the Glass Ceiling of .11 to .14 will mean that MRF has gathered enough numbers and long-termers to explore the next range. Flaker Flight will be interesting to try to measure...
At the most basic level the nature of SL Vein itself; its very special properties; Graphene and costs involved in pulling it up and bringing it to market are all suggestive here in my opinion.
I my opinion once it cracks .14 or so many investors in the wings will jump on board in my opinion.
Production will certain make a difference...
Could be 100% Wrong! DYOR !!!
Kind Regards
Have a Wonderful Day! Brisbane is picturesque right now!
