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Drilling intersects shallow, wide and massive graphite at Lindi Jumbo Highlights 05 October 2015
  • 17 RC Drill holes completed for 1061 metres with total of 525m of graphite intersected


  • VTEM interpretation of near surface synformal and antiformal structures confirmed by drilling


  • 37% (198m) by length of graphite intersections are classified as massive with visible flakes. Visually massive graphite at surface has previously assayed between 16%TGC and 43%TGC


  • Initial exploration target of potential 8m tonnes of contained graphite within the Gilbert ARC anticlinal structure


  • Flake sizes observed are generally large with spectacular jumbo flakes visible in the massive graphite zones


    Overview

    Perth-based African-focussed junior explorer Walkabout Resources (ASX:WKT) is pleased to report on initial RC drilling at site in south eastern Tanzania.

    Maiden drilling at the Lindi Jumbo graphite project has revealed extensive, near surface visually classified massive graphite along with multiple wide intersections of graphitic schists and gneisses. The drilling has confirmed the presence of multiple, wide, near surface graphite layers along the shallow dipping flanks of antiforms and synforms in the project area. To date 1061 metres of a 1000m RC drill program has been completed. A 200m diamond drill program is due to commence this week. No assay results have yet been returned.

    Allan Mulligan, Managing Director of Walkabout commented, 'This drill program could not have had better results than what was observed on site last week. We have identified a near surface and potentially high grade zone within the Gilbert ARC which will be the focus of our immediate attention and can be defined as a resource very quickly. This area is well suited for a first phase mining operation in line with our stated strategy to rapidly develop several modular mine-sites at Lindi Jumbo.

    'The antiformal structure at Gilberts ARC is similar to such a structure defined next door at Nachu and which is listed as the highest grade area of that Resource. We were also excited to expose several massive graphite outcrops with the bulldozer.'


    Drilling Report

    An initial drilling program of 17 holes for 1,061m has been completed over selected priority VTEM targets. Drilling was planned to intersect the shallow graphite layers as modelled from the VTEM survey as close to perpendicular as possible. All of the drillholes in the target zones intersected multiple shallow and wide graphite layers, often massive in nature and displaying flakes > 1mm.

    Graphite is contained within graphitic gneisses and schist units located on the flanks of various syn- and anti-forms in the region. The dip of the mineralised units intersected in the drilling is very shallow (between 20 and 30 degrees) which is further supported by sporadic outcrops in the drilling areas.



    Figure 1: An overview of the RC drilling program to date highlighting the Gilbert ARC area of initial focus.


    The bulk of the drilling was concentrated in the Gilberts ARC area (See Figures 1 and 2) where multiple horizons of shallow, large flake and massive graphite was intersected on the flanks of an anti-form over a strike distance in excess of 1km. Thick graphitic units have been intersected from surface as well as at depths more than 80m vertically beneath the surface (See Table 1).

    The management team in consultation with the on-site geologists decided to focus drilling in the area that appeared to have most promise and could deliver a +5m tonne resource within a contained potential mine-site area. This area was confirmed to be the Gilbert ARC.


    Intersections within several holes of this area appeared to be massive in nature with the graphite reporting to the cyclone as rich, black or grey material that floats on top of the wash water. The nature of these wide and massive down-hole intersections meets the Company's strategic criteria in developing bespoke, 'right-size' modular graphite mines supplying locked in end-user customers.


    Figure 2: The Gilbert ARC area of focus with spectacular graphite intersections.


    The intersections within the Gilbert ARC are near surface, wide and relatively flat in structure making the potential orebody, which is yet to be defined, particularly suitable to shallow open cut mining. The Company intends to define a modest and shallow resource at the Lindi Jumbo project as soon as possible and then commence necessary studies to define a mine design and market the product to an end-user partner.

    The drillholes in Table 1 below, highlighted in peach colour, are contained within the Gilbert ARC and are within the highly promising, wide and massive mineralisation zone.

    Significant graphitic intersections include:

  • LJRC010 - 16m from 7m to 23m and 32m from 29m to 61m with the hole ending in mineralisation.

  • LJRC017 - 27m from 15m to 42m and 47m from 48m to 95m

  • LJRC011 - 35m from 5m to 40m

  • LJRC009 - 8m from 1m to 9m and 36m from 17m to 53m

  • LJRC012 - 34m from 3m to 37m



Hole Number


East


North


Dip/Azi

Elevation (RL's)

Current Depth

Graphite From

Total Graphite Intersected

Thickest Graphite Intersection

Massive Graphite Intersection


Comment

m

m

deg

m

m

m

m

m

m

Down-hole measurements

LJRC001

490200

8904331

60/120

243

59

13

34

19

0

High grade graphitic schist from 13m

LJRC002

491083

8904602

-90

234

68

NA

0

0

0

Off trend - Water hole

LJRC003

491259

8904904

60/145

226

66

28

8

7

0

Graphitic schist and biotite from 28m

LJRC004

491185

8905007

60/325

230

102

17

26

8

0

Graphitic schist and biotite from 17m

LJRC005

490141

8903818

60/300

228

70

8

21

8

0

Graphitic schist and gneiss from 8m

LJRC006

489754

8903556

60/120

230

67

11

30

21

28

Massive graphite with visible flakes from 11-32m and 34-41m

LJRC007

489992

8903944

-90

232

40

19

2

2

0

Off trend - Sporadic graphitic dolomite

LJRC008

490220

8903996

60/300

229

41

9

11

9

2

Massive graphite from 9-11m and graphitic schist annd gneiss

LJRC009

489935

8904056

60/120

228

55

1

49

36

42

Massive graphite with visible flakes from 3-9m and 17-53m

LJRC010

489762

8903806

60/120

214

61

7

49

36

46

Massive graphite with visible flakes from 7-23m and 29-61m

LJRC011

489999

8903701

60/300

227

41

5

34

34

2

Massive graphite from 9-11m then graphitic schist and gneiss

LJRC012

489658

8904161

60/320

221

40

3

33

33

1

Massive graphite from 3-4m then graphitic shist to 36m

LJRC013

489858

8903935

60/320

218

70

3

56

36

0

Graphitic schist from 3-39m then 42-53m and 57-69m

LJRC014

489795

8902800

60/145

234

65

3

34

34

1

1m Massive graphite from 3m then graphitic schist

LJRC015

489707

8903728

60/120

223

67

13

46

30

46

All intersections massive graphite with visible flakes

LJRC016

490172

8904373

60/120

230

51

3

17

12

12

12m of massive graphite from 30m with visible flakes

LJRC017

489736

8903805

60/120

224

98

15

75

47

18

Massive graphite with visible flakes from 15-33m and from 49m to EOH

Totals

1061

525

198

Table 1: A list of drillholes recorded by the maiden RC drill program at Lindi Jumbo graphite projfect area. The peach colour highlighting are holes designated within the Gilbert ARC area.


Photo 1: Natural massive graphite discovered during drill pad preparation.


A diamond drill program of around 200m will commence this week. Drillholes are planned to confirm grades/intersections of the RC drilling (twinned holes) as well as complete infill drilling between the wider spaced RC drillholes with the aim of delineating a shallow reportable maiden resource. Core from the diamond drilling program will be sent to Perth for metallurgical testwork which will commence as soon as the drilling program has been completed and the core arrives in Australia.


Photo 2: Massive graphite powder and chips collected for sampling.


Massive graphite outcrops that were exposed through the groundworks for the RC drilling program have been ripped in trenches and collected as bulk samples for additional metallurgical and analytical testwork.

Batches of samples for all holes have been delivered to SGS in Mwanza for sample prep and the pulps will be sent to Perth for analyses within the next few days.


Lindi Jumbo Graphite Project

Walkabout intends to fast track the exploration at Lindi Jumbo to validate the deposit, graphite grade, concentrate product grade and flake size distribution. These results will enable the early introduction of an end-user market partner to secure product off-take and clarify operational right- sizing.

A small, high grade and functional Resource of between 5 to 10 million tonnes will be adequate to plan a first stage modular mining operation and initiate partnership discussions with an end-user group.

Details of Walkabout Resources' other projects are available at the Company's website, www.wkt.com.au

ENDS


For further information contact: Allan Mulligan - Managing Director

+61 8 6298 7500 (T) allanm@wkt.com.au


Photo 3: The sampling team at Lindi Jumbo graphite project.


JORC Code, 2012 Edition - Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)


Criteria

JORC Code explanation

Commentary

Sampling techniques

  • Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

  • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

  • Aspects of the determination of mineralisation that are Material to the Public Report.

  • In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

  • Reverse Circulation (RC) drilling was done and samples were split using a cone splitter into 1m samples. All primary samples as well as sample spoils are weighed and the results recorded.

  • All RC intervals were geologically logged by a suitably qualified geologist and mineralized intersects (graphitic zones) dispatched to SGS in Mwanza Tanzania.

Drilling techniques

  • Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method, etc).

  • Drilling was conducted by Kutcimba Drilling. RC drilling was by a Hydco track mounted 450 rig using a Sullair compressor with air capacity 900CFM/350 PSI, and auxiliary Sullair air compressor with air capacity 900CFM/350 PSI and a booster with 1800CFM/1000 PSI. Drilling was conducted with a 7 ½' face sampling bit.

Drill sample recovery

  • Method of recording and assessing core and chip sample recoveries and results assessed.

  • Measures taken to maximise sample recovery and ensure representative nature of the samples.

  • Whether a relationship exists between

  • RC recovery was recorded by visual estimation of recovered sample bags and all sample rejects from the splitter were weighed and the weights recorded. All A and B samples were weighed to assess the accuracy of the sampling process. Recovery was generally of good quality.



Criteria

JORC Code explanation

Commentary

sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Logging

  • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

  • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

  • The total length and percentage of the relevant intersections logged.

  • All drillholes were geologically logged in full by an independent geologist.

  • All data is initially captured on paper logging sheets, and transferred to pre- formatted excel tables and loaded into the project specific drillhole database.

  • The logging and reporting of visual graphite percentages on preliminary logs

  • All logs are checked and validated by an external geologist before loading into the database. Logging is of sufficient quality for current studies.

is semi‐quantitative. A reference to

previous logs and assays is used as a

reference.

Sub- sampling techniques and sample preparation

  • If core, whether cut or sawn and whether quarter, half or all core taken.

  • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

  • For all sample types, the nature, quality and appropriateness of the sample preparation technique.

  • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

  • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

  • Whether sample sizes are appropriate to the grain size of the material being sampled.

  • Reverse Circulation (RC) samples were split using a cone splitter into 1m samples. All primary samples and RC spoils were weighed and the results recorded. All samples were dry.

  • All RC intervals were geologically logged and mineralized intersects dispatched to SGS in Perth for assaying.

  • Duplicate samples were taken approximately 1:20 and were collected by spearing approximately 3kg from the representative 1m interval sample reject.

  • QC measures include field duplicate samples, blanks and certified standards (1:20) over and above the internal controls at SGS.

  • All sampling was carefully supervised. Ticket books were used with pre- numbered tickets placed in the sample bag and double checked against the ticket stubs and field sample sheet to guard against sample mix ups.

Quality of assay data and laboratory tests

  • The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

  • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations

  • QC measures include duplicate samples, blanks and certified standards (1:20) over and above the internal controls at SGS.




Criteria

JORC Code explanation

Commentary

factors applied and their derivation, etc.

  • Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

Verification of sampling and assaying

  • The verification of significant intersections by either independent or alternative company personnel.

  • The use of twinned holes.

  • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

  • Discuss any adjustment to assay data.

  • An external geological consultant conducted a site visit in September 2015 during the drilling program to observe all drilling and sampling procedures. All procedures were considered industry standard, well supervised and well carried out.

  • All data is initially captured on paper logging sheets, and transferred to pre- formatted excel tables and loaded into the project specific drillhole database. Paper logs are scanned and stored on the companies server. Original logs are stored at a secure facility in Dar Es Salaam.

  • Assay data is provided as .csv files from the laboratory and entered into the project specific drillhole database. Spot checks are made against the laboratory certificates.

Location of data points

  • Accuracy and quality of surveys used to locate drill holes (collar and down- hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

  • Specification of the grid system used.

  • Quality and adequacy of topographic control.

  • Collar positions were set out using a handheld Garmin GPS with reported accuracy of 5m and reported using WGS84, sutm Zone 37.

  • Three pegs were lined up using a Suunto compass and a rope laid out on the ground between the three pegs to align the rig. Once the drilling was complete the final collar position was recorded using a handheld Garmin GPS.

  • Downhole surveys (dip and azimuth) were taken using a Reflex electronic multi shot instrument.

Data spacing and distribution

  • Data spacing for reporting of Exploration Results.

  • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

  • Whether sample compositing has been applied.

  • Drillholes were to test pre-determined geophysical targets and are thus not on a pre-determined grid.

  • The drilling is at exploration level

  • No sample compositing has been done.




Criteria

JORC Code explanation

Commentary

Orientation of data in relation to geological structure

  • Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

  • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

  • Surface mapping and interpretation of the VTEM data shows that the lithologies dip between 30 and 50 degrees to both the NW and SE on the limbs of various synforms in the area.

  • Drillholes were planned to intersect the lithology/mineralisation at right angles.

Sample security

  • The measures taken to ensure sample security.

  • Samples were split and sealed (tied off in calico or plastic bags) at the drill site and transported to the Exploration Camp for processing. All samples picked for analyses are placed in clearly marked polyweave bags (10 per bag), and were stored securely on site before transported via a courier company to SGS in Mwanza.

Audits or reviews

  • The results of any audits or reviews of sampling techniques and data.

  • An external geological consultant conducted a site visit in September 2015 during the drilling program to observe all drilling and sampling procedures. All procedures were considered industry standard, well supervised and well carried out.


Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

  • Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

  • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

  • The drilling was located on one granted Exploration License (PL9992/2014). Walkabout is earning 70% interest in the tenure.

  • The company is not aware of any impediments relating to the licenses or area.

Exploration done by other parties

  • Acknowledgment and appraisal of exploration by other parties.

  • As far as the company is aware no exploration for graphite has been done by other parties in this area. Some gemstone diggings for tourmaline are present in the PL.

Geology

  • Deposit type, geological setting and style of mineralisation.

  • The project area is situated in the Usagaran of the Mozambique belt and consists of graphitic gneisses and schists




Criteria

JORC Code explanation

Commentary

interpreted to occur along the flanks of various synforms in the area with the lithological units dipping at between 30 and 50 degrees to the NW and SE.

Drill hole Information

  • A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

    • easting and northing of the drill hole collar

    • elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

    • dip and azimuth of the hole

    • down hole length and interception depth

    • hole length.

  • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

  • Drillhole coordinates and orientations are provided in Table 1 of this report.

  • This statement relates to Exploration Results.

Data aggregation methods

  • In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

  • Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

  • The assumptions used for any reporting of metal equivalent values should be clearly stated.

  • No assay results are reported in this report.

Relationship between mineralisatio n widths and intercept lengths

  • These relationships are particularly important in the reporting of Exploration Results.

  • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

  • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').

  • The drilling is at right angles to the mapped strike of the outcropping lithologies.

  • All intercepts are reported as down-hole lengths and are aimed at being as perpendicular to mineralisation as practical.





Criteria

JORC Code explanation

Commentary

Diagrams

  • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

  • A drillhole plan is provided in Figures 1 and 2.

Balanced reporting

  • Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

  • No assay results are reported in this report.

Other substantive exploration data

  • Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

  • Previous announcements include the release of assay data related to surface 'dig and grab' samples and also to the results of an Airborne VTEM Survey.

Further work

  • The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step- out drilling).

  • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

  • Exploration drilling is ongoing. Further holes are planned to test targets generated through the VTEM survey and surface mapping with the aim of delineating a maiden resource.



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