Project Location and Access
The Molo deposit is located within the Green Giant Project which is located in the Tulear region of southern Madagascar, 145 km southeast of the city of Toliara. The Molo deposit is located in a sparsely populated, dry savannah grassland area, which has easy access via a network of secondary roads that lead to both the regional capital (and port city) of Toliara, and to the port of Soalara.
Geology and Mineralization
The Molo deposit consists of multi-folded graphitic strata with a surficially exposed strike length of over two kilometres, and is situated in the Bekikiy block (Tolagnaro-Ampanihy high grade metamorphic province) of southern Madagascar. The deposit is underlain predominantly by moderately to highly metamorphosed and sheared graphitic (biotite, chlorite and garnet-rich) quartzo-feldspathic schists and gneisses. Geological modelling has shown that the deposit consists of various zones of mineralized graphitic gneiss, with a barren footwall composed of garnetiferous gneiss. The host rock of the mineralized zones is a graphitic gneiss.
Mineral Resource Estimate
The 2012 resource delineation drilling and trenching on Molo took place between May and November 2012, and allowed for a maiden Indicated and Inferred Resource to be stated in early December of the same year by Desmond Subramani, Pr.Sci.Nat.(400184/06) and John Hancox, Pr.Sci.Nat.(400224/04), independent Qualified Persons with Caracle Creek International Consulting Pty Ltd. ("CCIC") of Johannesburg, South Africa. The mineral resource estimate for Molo is summarized in the table below. The mineral resources are classified in the Indicated and Inferred categories according to the Canadian Institute of Mining Definition Standards. Resources within the "low grade" domain are stated at a 2% C cut-off, and resources within the "high grade" domains are stated at a 4% C cut-off. The total Indicated Resource is estimated at 83.99 Mt, grading at 6.36% C, with an additional Inferred Resource of 40.32 Mt, grading at 6.3% C.
----------------------------------------------------------------------------Classification Material Type Tonnes (Mt) Grade (C%)----------------------------------------------------------------------------Indicated "high grade" 40.88 8.09----------------------------------------------------------------------------Indicated "low grade" 43.11 4.72----------------------------------------------------------------------------Indicated - Total 83.99 6.36--------------------------------------------------------------------------------------------------------------------------------------------------------Inferred "high grade" 19.23 8.11----------------------------------------------------------------------------Inferred "low grade" 21.09 4.64----------------------------------------------------------------------------Inferred - Total 40.32 6.3----------------------------------------------------------------------------1-Mineral Resources are classified according to the Canadian Institute ofMining definitions.2-"low grade" Resources are stated at a cut-off grade of 2% C.3-"high grade" Resources are stated at a cut-off grade of 4% C.4-Eastern and Western high grade assays are capped at 13% C and 15% Crespectively.5-A relative density of 2.36 t/m3 was used assigned to the mineralized zonesfor the resource estimation.
