Triton Minerals Ltd.: Ancuabe T12 - Positive Exploration Drilling Results Continue

Perth, Australia (ABN Newswire) - Triton Minerals Ltd. (ASX:TON) (Triton or Company) is pleased to announce the initial drilling results for the Ancuabe Graphite Project which is located in the Cabo Delgado Province, Mozambique.

Triton Minerals Managing Director Brad Boyle said:

"The first interim results from Triton's initial exploration program at the Ancuabe T12 prospect have confirmed that the extensive graphite that is exposed at surface also extends to depth with mineralisation developed over true widths of 100m. Triton is pleased to learn that every hole drilled to date has intersected intervals of very large flake graphite at grades that are as expected for this style of deposit.

Only a small percentage of the targeted area has so far been drill-tested, and while Triton considers these initial results to be encouraging, the full potential of the project is yet to be realised.

Metallurgical test work carried out by Triton earlier this year has indicated that Ancuabe graphite is of the very highest quality with respect to flake size and purity through simple limited stage flotation. Triton considers that the high prices that high purity jumbo flake can attract and the confirmation of in situ grades that are typical for this style of deposit are positive indicators towards a future viable graphite project.

Triton considers the proximity of Ancuabe T12 to established infrastructure such as hydro-electric grid power and a relatively short-haul by mostly sealed public roads to the port of Pemba is extremely advantageous with respect to advancing rapidly to production should exploration results support a mining operation".


INTRODUCTION

Triton is pleased to announce the completion of the initial drilling program at the T12 prospect at the Ancuabe Graphite Project. These drilling results from the results from the T12 prospect at the Ancuabe Graphite Project are considered to be encouraging and of material importance. Ancuabe T12 has been tested by a total of 11 diamond and 18 reverse circulation (RC) drillholes (Figures 1 & 2 in link below). Assay results have been received for eight of these drillholes are detailed below and assay results for the remaining holes will be reported as they become available.

Ancuabe is distinguished by the dominance of jumbo (>300?) and super jumbo (>850m) flake graphite that forms the main mineral constituent of a gneissic host rock. Given the dominance of high-value flake sizes the minimum targeted average grade of this style of deposit range is 5%TGC. Due to the high prices that jumbo and super-jumbo flake graphite can attract, Triton's target grades and tonnages for the initial program of exploratory drilling were set at 5%TGC over downhole (mineable) widths of not less than 3m ie.,a grade x tonnage (GT) criteria of 15.

Preliminary metallurgical test work completed by Triton, based on graphite outcrop samples, returned encouraging recovered flake size results with 72% >300?. Trial concentrate production achieved an average grade of 98.2%TGC at 97% recovery through a simple four stage flotation process.

Ancuabe T12 is located 9km east north east of the Graphite Kropfmühl (GK) graphite operation that is currently undergoing refurbishment in preparation for recommencement of graphite production. Whilst in operation with the previous owners - Kenmare Resources plc the mine was world-renowned as a preferred source of large-flake high-value graphite.

Triton has a formal strategic alliance with GK to explore and identify the graphite potential of the Ancuabe region. In early November 2015 both GK and Triton management completed a day long site visit at Ancuabe. The visit involved an extensive review of the current exploration and development activities being completed by both companies at Ancuabe and to facilitate a further strengthening and understanding of the current and future alliance between the companies.


DRILLING RESULTS

Drilling results received to date are considered to be encouraging for the initial exploratory program designed to test the T12 geophysical anomaly. Results have been received for eight holes in the 29 hole program which tested a 700m long section located at the western edge of a 4km long anomaly (Figure 1). A representative from independent resource consultants Jorvick Resources Pty Ltd (Perth) has completed a site visit to Ancuabe to ensure that all sampling, logging and QAQC procedures have been conducted to industry standards and to independently verify the surface expressions of graphite mineralisation.

Every hole reported has intersected graphite mineralisation with 18 intersections exceeding the GT criteria of 15. The weighted average of these intersections is 6.5m at 6.1%TGC (GT=39.7). Large flake graphite has been logged in every hole drilled to date (Figure 4 in link below).

Currently, up to seven stacked higher grade graphite zones have been identified within a broader mineralised zone that is continuous over a true width of 100m. Additional hanging wall graphite horizons have been identified in mapping to the north and are yet to be drill tested.

Drillhole IVC005 intersected graphite mineralisation over the entire length of the hole ie. from surface to the end of hole (EOH) at 105m. This broad zone, which averaged 4%TGC, contains seven separate higher grade zones with individual grades of up to 9.5%TGC over 8m downhole (Figure 3 in link below).


GEOMETRY

The geometry of the mineralisation has been interpreted from existing logging, mapping and assay data. Graphite mineralisation thins and becomes shallower towards the western margins of the anomaly. Based on observations and assay results received, graphite mineralisation thickens and increases in grade towards the north east. The mineralised envelope, which dips at approximately 20 degrees towards the north, is exposed at surface over a horizontal width of 275m. There is no overburden. Extensive jumbo flake graphite exposures have been mapped north of the drilling area and are in addition to the 275m horizontal widths defined.


IMPLICATIONS

The geometry of the mineralised system is ideally suits a low strip ratio open pit mining scenario. The substantial horizontal widths, the limits of which have yet to be tested, in conjunction with the shallow dipping geometry may also prove favourable for a very low cost strip mining scenario based on a very large tonnage (bulk) mining operation using a lower grade cut off, thus maximising the recovery of jumbo flake.

To date only 700m of a total target strike length of 4km has been drill tested so there is significant potential to increase the limits of the identified graphite mineralisation zone.


T16 GRAPHITE DISCOVERY

Graphite mineralisation has been discovered at the T16 target which is located 4km due east from T12. Large flake graphite, similar to that found at T12, is exposed continuously over a horizontal width of 100m over strike length of approximately 800m. T16 is located on the T16-T17 target horizon that is separate from the T12 - T15 trend (Figure1). The implications of this discovery are:

- Confirmation that an additional large flake graphite trend exists to the east of the T12-T15 trend,

- Additional potential to define economic concentrations of large flake high-value graphite, and

- Potential satellite source of graphitic material for a proposed centralised processing plant.

Trench sampling is currently underway to determine graphite grade distribution (Figures 5 & 6).


ANCUABE GRAPHITE POTENTIAL

In addition to the traditional graphite applications, Triton is targeting TMG graphite at the highest growth segments of the graphite market:

- Emerging technology applications: battery specification graphite feedstock for anode materials which are a main component of lithium ion batteries; and

- Products critical to the electronics industry, amongst others, that are based on the unique properties of intumescent flake graphite ie., "expandable flake"


EMERGING TECHNOLOGY APPLICATIONS

Suitability of Ancuabe Graphite for Battery Applications

In metallurgical test work carried out by Mintek (Johannesburg) on the Ancuabe graphite samples, a minimum recovered grade of 98%TGC was targeted and achieved through simple flotation methods.

According to Technology Metals Research (TMR), 2014 "the cost difference in purifying a 95%TGC concentrate to >99.9%TGC, versus taking a 98%TGC concentrate to >99.9%TGC (as required for anode material) can vary be as much as $2,000-$3,000/tonne of concentrate, using thermal processes." These costs are in addition to the costs of mining and flotation concentration. The alternative to thermal purification for those parties involves the use of highly undesirable acid-based chemical processes.

As previously reported, Ancuabe graphite material has achieved encouraging results in metallurgical test work (Table 2) and feature the predominance of jumbo to super jumbo flake sizes.

Two comprehensive test programs have been conducted by Mintek (Johannesburg):

- Ancuabe Standard: initial mineralogical and flotation tests - grade 97.8%TGC through four-stage flotation

- Ancuabe Battery-Specification: trial concentrate production cycle with the target grade of >98%TGC through four-stage flotation

A grade of 98.2%TGC was achieved in a trial concentrate production cycle through a simple four stage flotation process.


EXPANDED GRAPHITE PRODUCTS

As previously announced by Triton, expanded graphite, which is produced from chemical and thermal processing of graphite concentrate, is used to produce flexible graphite sheets and foils which are subsequently used for manufacturing high-performance gasket material for high-temperature use, packaging and other sealing materials in critical applications of high pressure environments.

Triton has demonstrated through YXGC that Ancuabe graphite has proven it is ideally suited for extensive range of expanded graphite products. YXGC has managed to obtain expansion rates of 1,000, which were achieved from unprocessed graphite ore material. Higher expansion rates of over 1,500 are expected from purified graphite concentrate.

China currently produced up to 16,000 different types of the expanded graphite products. Expanded graphite, which sells for up to US$3,500 per tonne, is an extremely valuable and highly sought after material and is another critical component in battery market. Company research has found that, subject to the quality and thickness, the expanded graphite foil can sell for up to US$50,000 per tonne.


TARGETING PREMIUM GRAPHITE PRICES

Graphite sales prices are directly proportional to flake size. Larger flake sizes, particularly >150?, attract higher prices with >300? and >500? in the top pricing brackets.

Thus a key objective of the recent metallurgical test work was to preserve a high proportion of >150??graphite flake so as to achieve the highest basket price possible. In the trial concentrate production cycle to produce battery specification concentrate, 89.2% of the recovered flake size exceeded 150? with?72.9% of the recovered flake exceeding >300??

Ancuabe "standard" achieved 91.5% of the recovered flake size exceeding 150? and ?72.6% of the recovered flake exceeding >300??

In both flotation tests, which required only four stages, over 42% of the recovered flake exceeded >500??

Ancuabe flake size distributions are shown in Table 2 in link below.


PROJECT DEVELOPMENT

Triton completed an internal conceptual economic modelling of the Ancuabe graphite and applying the Stormcrow projected 2016 basket price and using an average graphite grade of 6%TGC, the results indicate a robust financial outcome, with the potential for exceptional growth should pricing predictions be met. As a result, the project development preparations at Ancuabe have already commenced.

Triton's Ancuabe Graphite Project is ideally located with respect to established infrastructure including existing high capacity hydro-electric grid power, water supply, sealed public road access and close proximity to port facilities at Pemba (Figure 8).

The Environmental, Social, and Health Impact Assessment (ESHIA) for Ancuabe process is well advanced and proceeding smoothly. There are no villages or cultivated land within the area designated as potential mining operations.

The land use application known as the Direito do Uso e Aproveitamento da Terra (DUAT) is well advanced and proceeding smoothly.

Subject to defining a JORC compliant resource and obtained the relevant regulatory approvals, Triton does not anticipate any impediments to the rapid advancement of the Ancuabe project into graphite production.


CONCLUSIONS

Drilling results received from T12 to date indicate a significant graphite mineralised system that is characterised by large to jumbo flake graphite. There is significant exploration upside with only 700m of a 4km the targeted strike length currently drill tested. There is further potential for additional high quality graphite mineralisation by the identification of the T16 graphite discovery.

Ancuabe has the potential for a bulk mining scenario which would make it possible for a long-term assured source of flake graphite concentrate, having the most highly desired and valued qualities of flake size, purity and consistency.

As with the recent results of Nicanda West, Triton believes that the positive initial drilling results together with the consistency of the high-purity large-flake graphite recovered during flotation test work is a further decisive milestone in the development of Triton's Mozambique projects and adds an important additional dimension to the diverse MG product range.

To view all tables and figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-TON-743065.pdf


About Triton Minerals Ltd:

Triton Minerals Ltd. (ASX:TON) is an ASX listed, responsible mineral explorer and resource management company headquartered in Perth, Australia.

Led by a highly experienced management team, Triton Minerals' vision is to grow shareholder's value through discovery or development of base metal, gold and other precious metal deposits.

Triton has made excellent progress with its three Graphite projects located in the Cabo Delgado Province in Mozambique, with the program successfully identifying a number of graphitic exposures.

It is the Company's belief that the Mozambique, Balama North Project could host multiple and very substantial world class graphite deposits.



Contact:

Triton Minerals Ltd.
Brad Boyle, CEO & Managing Director
Tel: + 61 8 6489 2555
Email: bboyle@tritonmineralsltd.com.au

Alfred Gillman, Technical Director
Tel: + 61 8 6489 2555
Email: agillman@tritonmineralsltd.com.au