Graphite_ Desktop_Study_Report

DESKTOP STUDY REPORT ON

GRAPHITE POTENTIALLITY

OF PL10873/2016, PL10899/2016, PL10900/2016

IN THE MOROGORO REGION

OF THE UNITED REPUBLIC OF TANZANIA, EAST AFRICA

Written by: Maurice Semahimbo Elineema Kavuta
Abdul Osman Massota Magigita

November 2016

Prepared by:



DESKTOP STUDY REPORT ON
GRAPHITE POTENTIALLITY

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Table of Contents 01
03
1. EXECUTIVE SUMMARY 03
2. INTRODUCTION 03
03
2.1 Terms of References 04
2.2 Source of Information 04
2.3 Disclaimer 04
3. TENURE RIGHT 05
4. PROPERTY DESCRIPTION AND LOCATION 06
4.1 Property Location and Accessibility 06
4.2 Property Description 06
4.2.1 Matombo North 07
4.2.2 Matombo South 09
4.2.3 Dakawa 11
5. HISTORY OF MOROGORO GRAPHITE 11
6. REGIONAL GEOLOGY 13
7. LOCAL GEOLOGY 16
7.1 Matombo North & south
7.2 Dakawa 16
8. MINERALIZATION IN MOZAMBIQUE BELT 20
9. POTENTIAL GRAPHITE DEPOSITS IN 20
MOZAMBIQUE BELT 20
10. POTENTIALITY OF THE PROPERTIES 22
11. PROSPECTIVE TARGET AREAS
12. CONCLUSION AND RECOMMENDATION
13. REFERENCES

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List of Figures 05

Figure 1: Map of Tanzania showing Properties location, accessibility 08
and infrastructure 09

Figure 2. Location of known graphite occurrences close to Matombo 12
properties
14
Figure 3. Map showing Regional geology of Mozambique mobile belt 15

Figure 4. Simplified Geology map of Matombo South property (Tanzania
Geological Survey-QDS 183 & 201map)

Figure 5. Simplified Geology map showing the Dakawa property
(Tanzania Geological Survey-QDS 201 map)

Figure 6. Local geological map showing Morogoro properties

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1. EXECUTIVE SUMMARY

This report provides an initial assessment of Prospecting Licenses PL 10873/2016
(Matombo North or ‘the property’) PL10899/2016 (Matombo South or ‘the property’),
and PL 10900/2016 (Dakawa or ‘the property’) or Morogoro properties are located in
Morogoro region, which is about 200 km west of Dar es salaam and about 50 km
south-east of Morogoro town.

The properties can be accessed by a sealed road from Dar es Salaam to Morogoro
200km then a well maintained regional dirt road to a town of Matombo (50km). From
Matombo town, the Matombo north and south properties is only 5km to the west while
Dakawa property is about 23km south.

Morogoro properties are located within the Mozambique Neoproterozoic mobile belt
which is part of the East African Orogen (EAO) that extends from the Arabian Nubian
Shield in the north to as far south as Antarctica. The Mozambique Belt contains
intensively deformed metasedimentary rocks and intrusions. The major rock types include
granitoids, granulite, meta-anorthosites, gneisses, amphibolites, marbles, pegmatites,
mafic and ultramafic rocks, migmatites, quartzites and schists. The metamorphic grade in
this belt is amphibolite to greenschist facies, pyroxene granulites, granulite, amphibolite
facies, almandine-amphibolite facies. The general trend of structures is N-S.

Over the last few years numerous occurrences of graphite have been identified within
this mobile belt, including several world-class flake graphite deposits both in Tanzania
and Mozambique. Following these discoveries, many companies embarked a search for
more graphite deposits within the belt, hence making it a good target for graphite. The
largest deposit known to date is Nicanda Hill deposit with 1.457 Bt @ 10.7% graphitic
carbon and 0.27% V2O5 and the graphitic lithology is 6km long by 1km wide whereas
Morogoro properties have two prominent graphitic bands which are 12km long and
swells at the middle to 2km thick and shrinks up to 100m thick.

Natural graphite is mostly consumed for refractories, batteries, steelmaking, expanded
graphite, brake linings, foundry facings and lubricants. Graphene which occurs naturally
in graphite, has unique physical properties and is among the strongest substances
known, it is 200 times stronger than steel, yet incredibly lightweight and flexible, It is
electrically and thermally conductive but also transparent, It is the world's first 2D
material and is one million times smaller than the diameter of a single human hair.

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DESKTOP STUDY REPORT ON
GRAPHITE POTENTIALLITY

Potential graphene applications include lightweight, thin, flexible, yet durable display
screens, electric circuits, and solar cells, as well as various medical, chemical and
industrial processes enhanced or enabled by the use of new graphene materials.

Some of the graphite deposits that have been discovered in this belt are hosted by
similar rocks that are found in the Matombo north, Matombo south and Dakawa
properties and hence make these properties potential target for graphite deposit
discoveries. Other key factors that make these properties more potential to possible
host an economic graphite deposit are; (1) Occurrences of several graphite rich
bands of great thickness that are hosted in graphitic granulites and schists within the
properties. (2) Occurrences of known developed graphite deposits adjacent to one of
the licence that are hosted within the same lithology.

Following the above factors, the following exploration work is proposed;
Regional and Detailed mapping

This exercise will help in proper understanding the extension of graphite occurrences
and mineralization. Also understand well the behavior of graphite bearing units.

Ground EM Survey
The ground EM survey is also recommended to be done on the area so as to test and
know the lateral continuity and thickness of the graphite mineralization.

Trenching
Trenching is proposed to be opened on the areas that have;

• Good graphite rock exposures so as to understand the true thickness as
well as extension of the graphite bearing units.

• Test EM anomalies

Drilling
In late stage drilling is proposed to be conducted in the properties for the following
key reasons;

(i) To find out the lateral as well as down dip potential of the mineralization
(ii) Understanding well the mode and nature of occurrence of the

mineralization
(iii) Further estimate the resource

02

2. INTRODUCTION

Natural graphite is mostly consumed for refractories, batteries, steelmaking, expanded
graphite, brake linings, foundry facings and lubricants. Graphene which occurs naturally
in graphite, has unique physical properties and is among the strongest substances
known, it is 200 times stronger than steel, yet incredibly lightweight and flexible, It is
electrically and thermally conductive but also transparent, It is the world's first 2D
material and is one million times smaller than the diameter of a single human hair.
Potential graphene applications include lightweight, thin, flexible, yet durable display
screens, electric circuits, and solar cells, as well as various medical, chemical and
industrial processes enhanced or enabled by the use of new graphene materials.

The largest deposit known to date is Nicanda Hill deposit with 1.457 Bt @ 10.7%
graphitic carbon and 0.27% V2O5 and the graphitic lithology is 6km long by 1km wide
whereas Morogoro properties have two prominent graphitic bands which are 12km
long and swells at the middle to 2km thick and shrinks up to 100m thick.

Exploring Morogoro properties may help supply the market demand of the alternative
energy especially after the opening of Tesla Gigafactory.

2.1 Terms of Reference

This desktop study provides an initial assessment of Prospecting Licenses PL
10873/2016 (Matombo North or ‘the property’) PL10899/2016 (Matombo South or
‘the property’), and PL 10900/2016 (Dakawa or ‘the property’) or Morogoro properties
are located in Morogoro rural district of Morogoro region in eastern Tanzania. The
report provides summary of the location, accessibility and economic potentiality of the
properties.

2.2 Source of Information

This report is based on information collected by authors from different sources such as
geological maps (QDS), previous geological reports and other geological literatures.

2.3 Disclaimer

This report has been prepared in good faith based on the information available at the
time of publication. The authors make no particular representation to the degree of
accuracy of that data and information and do not bear any liability in that regard.

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DESKTOP STUDY REPORT ON
GRAPHITE POTENTIALLITY

3. TENURE RIGHTS

Licence Number Date Applied Date Granted Expiration Date Size (Km2) Application Number

PL10873/2016 8th Feb 2016 07th Oct. 2016 06th Oct. 2020 66.91 PL 10934/2016
PL10899/2016) 8th Feb 2016 23rd Sept. 2016 22nd Sept. 2020 52.01 PL 10935/2016
PL10900/2016) 8th Feb 2016 23rd Sept. 2016 22nd Sept. 2020 64.35 PL 10936/2016

Table 1: Validity of the Prospecting Licence (PL)

4. PROPERTY DESCRIPTIONS AND LOCATION

4.1 Property Location and Accessibility

Morogoro properties are located in Morogoro region which is about 200 km west of
Dar es salaam and about 50 km south-east of Morogoro town.
These properties can be accessed by a sealed road from Dar es Salaam to Morogoro
(200km) then a well maintained regional dirt road to a town of Matombo (50km). From
Matombo town, the Matombo south property is only 5km to the west while Dakawa
property is about 23km south.

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Figure 1: Map of Tanzania showing location of the properties, accessibility
and infrastructure.

4.2 Property Description

The licences are defined by the following corner coordinates listed below. The
geographic map datum for the region is GCS ARC1960, Zone 37S.

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4.2.1 MATOMBO NORTH Longitude(E)
37deg.46min.07.40sec
Latitude(S) 37deg.45min.00.00sec
06deg. 51min.40.00sec 37deg.45min.00.00sec
06deg. 55min.00.00sec 37deg.40min.30.00sec
06deg. 57min.20.00sec 37deg.43min.12.15sec
06deg. 57min.20.00sec
06deg. 51min.40.00sec Longitude(E)
37deg.43min.23.00sec
Area Size is approx. 66.912 km 37deg.41min.14.00sec
37deg.41min.14.00sec
4.2.2 MATOMBO SOUTH 37deg.41min.40.00sec
37deg.41min.40.00sec
Latitude(S) 37deg.43min. 23.00sec
07deg. 05min.00.00sec
07deg. 05min.00.00sec Longitude(E)
07deg. 00min.00.00sec 37deg.42min.10.00sec
07deg. 00min.00.00sec 37deg.45min.00.00sec
06deg. 57min.20.00sec 37deg.45min.00.00sec
06deg. 57min.20.00sec 37deg.47min.45.00sec
37deg.47min.45.00sec
Area Size is approx. 52.012 km 37deg.49min. 00.00sec
37deg.49min.00.00sec
4.2.3 DAKAWA 37deg.48min.08.50sec
37deg.48min. 08.50sec
Latitude(S) 37deg.48min.00.00sec
07deg. 15min.00.00sec 37deg.48min. 00.00sec
07deg. 15min.04.00sec 37deg.42min.00.00sec
07deg. 15min.00.00sec
07deg. 15min.00.00sec
07deg. 14min.27.00sec
07deg. 14min.27.00sec
07deg. 15min.25.00sec
07deg. 15min.25.00sec
07deg. 16min.56.00sec
07deg. 16min.56.00sec
07deg. 18min.00.00sec
07deg. 18min.00.00sec

Area Size is approx. 64.352 km

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5. HISTORY OF MOROGORO GRAPHITE

Morogoro properties which have great graphite potential are located in Morogoro
region in eastern Tanzania. There is no record of direct work done within the properties.
However, there are two developed graphite deposits on the eastern side of Matombo
properties, these are known as Mtukira and Mtombozi deposits.
Mtukira Deposit
Mtukira Graphite Deposit is on the South East of Matombo properties and is known to
have 360,000 tons of ore at 5% graphite located on thin graphite bands.
Mtombozi Deposit
Mtombozi deposit is direct to the east of Matombo properties and it is the richest with
(12% to 26% graphite) and probably the largest, containing an estimated 380,000
tons of extractable graphite and it is yet to be exploited.
Also there is one graphite occurrence on the NW of the Matombo properties but there
was no record found during the writing of this report.

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Fig 2. Location of known graphite occurrences close to Matombo properties

08

6. REGIONAL GEOLOGY

Morogoro properties are located within the Mozambique Neoproterozoic mobile belt.
This belt forms part of the East African Orogen (EAO) which extends from the Arabian
Nubian Shield in the north to as far south as Antarctica. In Tanzania, Mozambique belt
is bounded by Archaean Tanzania Craton in the west and Mesozoic sedimentary rocks
to the east. (See fig 3).

Fig 3. Map showing Regional geology of Mozambique mobile belt

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DESKTOP STUDY REPORT ON
GRAPHITE POTENTIALLITY

The Mozambique belt contains intensively deformed metasedimentary rocks and
intrusions. The major rock types include granitoids, granulite, meta-anorthosites, gneisses,
amphibolites, marbles, pegmatites, mafic and ultramafic rocks, migmatites, quartzites and
schists. The metamorphic grade in the Mozambiquian Belt is amphibolite to greenschist
facies, pyroxene granulites, granulite, amphibolite facies, almandine-amphibolite facies.
Stretching lineations and foliations characterize this belt. The general trend of structures
in this belt is N-S.
The belt is considered to have been formed by reworking of older continental crustal
materials of either Archean or early proterozoic age.
Two principal domains are identified in the Mozambique Belt. The Western Mozambique
Belt (WMB) comprise upper amphibolite-grade gneisses with emplacement ages
predominantly between 2970 to 2648 Ma (Johnson et al., 2003) but also as young as
1837 Ma, and represent reworked rocks of the Tanzania Craton and Usagaran Belt. As
yet, no Pan-African-aged igneous rocks have been identified in this domain. The Eastern
Granulites (EG) are high-grade, arcderived lithologies with Pan-African- aged
emplacement ages ranging between 841 Ma and 632 Ma. Both terranes include
Neoproterozoic metasedimentary rocks and on their lithological makeup and current
structural position are interpreted to be parts of two different basins, the West and East
Mozambique Basin respectively.

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7. LOCAL GEOLOGY

7.1 Matombo North & South
Based on the QDS geology map obtained from geological survey of Tanzania (GST),
fig 4, The Central, Western, South Western and North eastern parts of the property is
occupied with hornblende granulite with pyroxene garnet (Xgh). On Matombo north
property two prominent bands of graphite schist (Xr) about 12km long and swells up to
2km wide at the middle are observed whereas on southern part of the Matombo south
property, a thick graphite granulite and graphite schist bands are observed (Xr).

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Legend

Figure 4. Simplified Geology map of Matombo South property
(Tanzania Geological Survey-QDS 183 & 201map)

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7.2 Dakawa
The central, southern and northern part of the property is dominated by
biotite-granulite graphitic bands (Xyb), hornblende granulite with pyroxene and garnet
graphite bands occupies the eastern side, the western side is occupied by
biotite-granulite, hornblende granulite associated with bands of graphite granulite.
Banded pyroxene granulite occupies the southwest of the property.

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Legend

Figure 5. Simplified Geology map showing the Dakawa property
(Tanzania Geological Survey-QDS 201 map)

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Figure 6: Local geological map showing Morogoro Properties

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8. MINERALISATION IN MOZAMBIQUE BELT

Most of the economic minerals in the Mozambique Belt formed during metamorphism,
and the belt hosts hydrothermal mineralization including that of base metals and gold.
Other minerals include copper minerals, high grade coarse flakes graphite and
magnesite. Gemstones are the major minerals in the Mozambique belt and include ruby,
tanzanite, garnet, tourmaline, sapphire, scapolite, emerald, alexandrite, quartz, zircon,
kyanite, apatite and corundum.

9. SOME POTENTIAL GRAPHITE DEPOSITS IN
MOZAMBIQUE BELT

Over the last few years numerous occurrences of graphite have been identified within
the Mozambique mobile belt, which stretches from Mozambique through to Northern
Tanzania. These include several world-class flake graphite deposits both in Tanzania
and Mozambique. In Mozambique, the largest of these deposits are located in the
Cabo Delgado region and they include:

• Balama Deposit 1.15 Bt @ 10.2% graphitic carbon and 0.23 % V2O5.
This deposit is owned by Syrah Resources of Australia

• Nicanda Hill Deposit 1.457 Bt @ 10.7% graphitic carbon and 0.27% V2O5
The deposit is owned by Triton Resources of Australia

In Tanzania, the largest of the deposits are located in south eastern Tanzania in Lindi
region, north eastern Tanzania in Arusha region and eastern Tanzania in Morogoro
region.

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LINDI REGION
• Nachu Project, 156 million tonnes @ 5.2% graphitic carbon
This deposit is whole owned by Magnis Resources of Australia. The project is situated
west of the coastal city of Lindi and approximately 200km by road from the port city
of Mtwara. Several exploration works were conducted on this tenement starting with
rock chip samples and proceeding through to a broad scale trenching and sampling
programme, an electromagnetic (EM) survey and RC and diamond core drilling.
Mineralization is mainly hosted in graphitic schist within a sequence of
meta-sedimentary schists with minor un-mineralized dolomitic marble and gneisses within
the greater Mozambique Metamorphic Belt. Mineralogical analysis of samples
indicated large flake sizes of graphite and the multi-element analyses completed
indicated no deleterious elements.
• Chilalo Project, 18.1 million tonnes @ 6.2% graphitic carbon
The Chilalo graphite project is owned by IMX Resources of Australia. The Chilalo
Graphite Project is located in Nachingwea district of Lindi region. Chilalo is host to the
high-grade, coarse flake Shimba graphite deposit, where there is an Indicated and
Inferred Mineral Resource has been completed as indicated in the table below.

Shimba deposit: Indicated and Inferred Mineral Resource

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• Namangale Graphite Project, 179m tonnes @5.1 Total graphitic Content.
The Project is owned by Volt Resources-Austarlian Company. It is located in the South
East corner of Tanzania within the Mozambique Mobile Belt. Multiple graphite outcrops
have been identified in the project area during geological mapping. Outcrops of up
to 180m wide have been identified over a strike length of approximately 1,000m. Also
multiple other areas of subcropping graphite schist have been identified on the
tenements to date.

ARUSHA REGION
Merelani-Arusha Graphite Project, 17.2Mt @ 6.5% TGC for 1,120,000 tonnes of
contained graphite.
This project is whole owned by Kibaran Resources. The project consists of eight
tenements and covers 590.5km2 in an area 55km south-east of Arusha, Tanzania. The
project area is considered highly prospective for graphite mineralisation, owing to its
favourable geological settings.

MOROGORO REGION
Black Rock, Mahenge Project
A global resource of 131 million tonnes at 7.9% TGC holds 10.4Mt of contained
graphite. This extensive resource contains a high-grade portion of 37.6Mt @10.2% TGC,
or 16.7Mt @11.1% TGC

Epanko Project, 23.3 million tonnes @ 9.4% graphitic carbon
The Epanko graphite project owned by Kibaran Resources of Australia, is located in the
Mahenge Graphite Province, which is about 213km SW of the Morogoro properties. This
is a well advanced graphite project with latest activities conducted, mentioned below;

• Indicated JORC Mineral Resource estimate of 12.8 million tonnes at 10.0%
TGC (total graphitic carbon) for 1.28 million tonnes of contained graphite.

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• Resource estimate covers only 20% of the Mahenge project area and
mineralisation remains open at depth and in all directions.

• Epanko deposit comprises of large flake graphite, with 21.6% of recovered
graphite measuring in the jumbo size fraction (>300um) and 73.8% in the large
(>106um) fraction.

• Large flake graphite confirmed as occurring across a wide grade range
(5-15% TGC) which simplifies the optimisation of the deposit.

Mahenge graphite project geology and mineralisation
The Mahenge graphite deposits are hosted within a quartz-feldspar-carbonate
graphitic schist, which is part of a Neoproterozoic metasediment package, including
marble and gneissic units. Some of these graphite schists bands are also found in
Morogoro (Matombo north, south and Dakawa) properties. The deposits are
categorized into two graphitic schist zones namely the East Zone and the West Zone.
Graphitic mineralization is hosted within graphitic schist along the mine strike continuity
within the license area. Metallurgical characteristics, principally flake size, are available
on a consistent basis in the outcrop, trench exposure and diamond drill core at
numerous locations within the license area. This style of mineralization could possibly
occur within the Morogoro properties due to the presence of similar rocks.

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DESKTOP STUDY REPORT ON
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10. POTENTIALITY OF THE PROPERTIES
The properties are very potential to host possible economic graphite deposit due to
the following key reasons;

• Within the properties there are several graphite rich bands of great thickness
that are hosted in granulites and schists.

• Occurrences of known developed graphite deposits adjacent to one of the
property that are hosted within the same lithology.

11. PROSPECTIVE TARGETS
Based on the analysis of geology on the two QDS geology maps that cover the two
properties, the most prospective target areas are those which have rocks that are
associated with thick graphite bands. In Matombo north and south properties, these
rocks occur on the southern and northern parts, while in Dakawa property they occur
on the central, southern and northern part of the property and on the far eastern side
and western side. See fig 4, 5 and 6.

12. CONCLUSION AND RECOMMENDATION
Through the analysis of available information such as the geology, graphite
occurrences and historical mining of graphite adjacent to these properties, together
with the occurrence of a well advanced Mahenge graphite projects that are hosted
within similar package of rocks SW of the area, it is concluded that Matombo north,
Matombo south and Dakawa properties have great potential for a major graphite
deposit discovery if systematic and detailed exploration work is undertaken.

The following exploration work is recommended;

• Regional and Detailed mapping
This exercise will help in proper understanding the locality and extent of graphite
occurrences as well as the behavior of graphite bearing units.

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• Rock chip sampling
Rock chip sampling of all outcrops that are associated with graphite, examination,
sampling and analysis of rock exposures to identify host rocks, mineralized zones, flake
sizes and other factors that might control mineralization.
• Ground EM Survey
The ground EM survey is also recommended to be done on the area so as to test and
know the lateral continuity and thickness of the graphite bearing units.
• Trenching
Trenching is proposed to be opened on the areas that have:

- Good graphite rock exposures so as to understand the true thickness as
well as extension of the graphite bearing units.

- Test EM anomalies
• Drilling
In late stage drilling is proposed to be conducted in the area for the following key
reasons;
(i) To find out the lateral as well as down dip potential of the mineralization
(ii) Understanding well the mode and nature of occurrence of the mineralization
(iii) Further estimate the resource
These works should first focus on the areas that have thick graphite units.

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13. REFERENCES
A. Tectonic Evolution of the Mozambique Belt, East Africa; Cutten, H.N.C. Johnson, S.P. &
De Waele, B.
B. The metamorphic evolution of the Mozambique Belt in Central Tanzania: new
petrological and geochronological dataV. Tenczer, C. Hauzenberger, H. Fritz, E.
Wallbrecher, S. Muhongo, A. Mogessie, G. Hoinkes, J. Loizenbauer, A. Bauernhofer
Geophysical Research Abstracts, Vol. 7, 03986, 2005 SRef-ID:
1607-7962/gra/EGU05A-03986 European Geosciences Union 2005
C. IMX Resources. Chilalo Graphite Project, Press release and Updates.
D. Updates(Press release) of the Kibaran Resources
E. Volt Resources. Exploration Updates and Press release.
F. Tanzania Ministry of Energy & Minerals, 1998, Tanzania—Opportunities for mineral
resource development: Denver, CO, Brian W. Hester Inc.

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CONTACT HEAD OFFICE REGIONAL OFFICE POSTAL
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South Africa Tanzania South Africa