Syrah Resources Provides Update on Balama

 Syrah Resources Limited (ASX:SYR) provided an update on its Balama Graphite Project in Mozambique. The Company reported key Balama West Scoping Study outcomes from June 2013 and announced an updated study based on further resource definition, released on November 12, 2013. The Ativa Zone at Balama West has an Indicated and Inferred Resource calculated by MSA Group of 51 million tonnes at 19.9% TGC and 0.38% V2O5 at a 13% TGC cut-off. The total Indicated Resource comprises 13.5 million tonnes at 19.8% TGC and 0.40% V2O5 at a 13% cut-off.

As quoted in the press release:

Highlights:

• Key Balama West Scoping Study outcomes from June 2013 now reported
• Updated study based on further resource definition released on 12 November 2013
• Scoping study prepared by Snowden Mining Industry Consultants with
• specialist work undertaken by various consultants
• June 2013 report items as follows:
  • Results reported only includes graphite production results. Vanadium outcomes to be reported later
  • Estimated initial capital cost of US$92 million which includes contingencies
  • Estimated average mine gate cost of production US$102 per tonne
  • Free on Board cost (FOB) Port of Pemba estimated at an average of US$198 per tonne
  • Peak development cost funding requirement of US$69 million
  • Payback period within 6 months of commission
  • Strip ratio of 0.09:1 waste to ore
  • The Scoping Study was based on conservative parameters throughout and Snowden has advised that there may be potential to reduce project costs further

Click here to read the Syrah Resources Limited (ASX:SYR) press release
Click here to see the Syrah Resources Limited (ASX:SYR) profile