Green Rock Energy (ASX:GRK) has revealed that it will commence exploration on July 25th at the Mahenge North Graphite Project in Tanzania.
The company has signed an option to purchase agreement over the project with Asab Resources.
Notably, the project lies directly north of the world class Epanko Graphite Resource held Kibaran Resources (ASX:KNL) containing a JORC Inferred Resource of 14.9 million tonnes at 10.47% TGC.
It covers 292 square kilometres over one of the most prolific graphite districts in Tanzania with many known graphite occurrences and favourable geological characteristics.
Previous exploration has already identified two graphite prospects in Ndololo and Epanko North Graphite with reported flake sizes ranging between 1.5mm and 8.5 mm in size.
In particular, previous exploration work conducted at Ndololo in 1945 reported results of 15.5% Carbon and 97.5% recovery of flake graphite.
At Epanko North, exploration will investigate the potential widths and strike length by way of initial mapping and rockchip sampling followed by a trenching at intervals along the strike.
At Ndololo the company intends to verify the drill hole locations previously drilled by Kibaran Resources which they released to the market in December 2012.
Significant intervals were recorded from two holes that include 33 metres at 5.8% TGC including 13 metres at 10.8% TGC from 7 metres, and 29 metres at 6.8% TGC including 11 metres at 11.2% TGC from 11 metres.
In addition the team will map and sample the graphite schist, determining its thickness and strike potential and potential extensions.
As part of the Ndololo on-site geological due diligence, GRK aims to identify and prepare key areas for resource drilling.
The prospects provide the potential for rapid and cheap transformation from discovery, through to resource definition to scoping and off-take agreements.
Geological due diligence, mapping, sampling and trenching expected to be completed towards the end of August, with assay results of rock chip and trenching samples to be available for review and disclosure in early September.
Analysis
A graphite project just north of Kibaran's Epanko deposit makes Green Rock's market capitalisation of $8 million look decidedly light.
Exploration of well-located graphite tenements has been attracting investment crowds in recent times, so keen buyers are likely to push the share price up leading into initial results.
