PROJECT UPDATE: Syrah Secures Mining Licence for Balama Project

ASX-listed Syrah Resources (ASX:SYR) is capping off 2013 with a mining licence for its Mozambique-based graphite-vanadium Balama project.
The Mozambique government granted Syrah a 25-year mining licence that covers both graphite and vanadium; under Mozambique law, it is available for a further 25-year extension. The company expects to start the construction phase of the project in April 2014, when the wet season in Mozambique ends.
According to Syrah, the Balama property has the potential to be the biggest flake graphite deposit in the world. Furthermore, assays at Balama indicate that the deposit could be the highest-grade graphite in the world. Balama’s high-grade resource outcrops lend themselves to cheap extraction and processing, and are further enhanced by the project’s infrastructure and proximity to Pemba Port, the third-largest deep water container port in Mozambique.
Syrah’s strong belief in Balama started with the first drill hole on the project. Given its expectations for the project, Syrah has undertaken several development activities alongside its exploration efforts. That has required building infrastructure, planning the mine site and recruiting highly skilled employees.
Syrah filed for the Balama mining licence in July 2013, and thus has obtained the licence in in roughly five months. In addition to the licence, Syrah has been in conversations, the results of which are expected in Q1 2014, with potential debt financiers and offtakers.
 
Securities Disclosure: I, Vivien Diniz, hold no investment interest in any companies mentioned. 
Editorial Disclosure: Syrah Resources is an advertising client of the Investing News Network. This article is not part of the company’s advertising campaign.