Mozambi Resources Ltd. Exceptional Super Jumbo and Jumbo Flake Graphite Metallurgical Results Continue

Melbourne, Australia - Mozambi Resources Ltd. (ASX:MOZ) ("Mozambi", "the Company") is pleased to announce further exceptional metallurgical results noting Super Jumbo and Jumbo Flake mineralisation at Namangale 1, 2 and 3. The results from the 6 diamond core composites add to the 3 diamond core composites previously announced and highlight outstanding size distribution, with up to 94.5% of the graphite in the categories of Super Jumbo, Jumbo and Large Flake graphite. Flotation test-work is currently underway at ALS in Perth on representative diamond core samples of both fresh and oxidised mineralisation. Results to determine graphite concentrate grade, yield and flake size distribution post floatation, will be reported as soon as they are available.


Highlights:

- New metallurgical results across all Namangale deposits show consistent outstanding Super Jumbo and Jumbo Flake size graphite

- Outstanding distribution of up to 94.5% confirmed in high value categories of Super Jumbo +600 microns, Jumbo +300 microns and Large + 180 microns flake graphite

- New Results received from SGS Laboratories South Africa on 6 Diamond core composites further validates the consistency of graphite flake size and adds greatly to previously received metallurgical results

- Metallurgical results are confirming easy separation of graphite flake from the host rock following a simple crushing and process, with no chemical liberation required

- Multi-element assays of graphite mineralisation has also shown low levels of potentially deleterious trace elements

- Flotation test work is currently underway from representative materials from all three deposits in order to produce a graphite concentrate at ALS in Perth.

- Strong demand is continuing for Super Jumbo and Jumbo flake graphite from end user companies in the Lithium - Ion battery market

- Positive discussions are continuing with potential end-user groups

Mozambi Executive Chairman, Stephen Hunt comments that these flake size results are truly exceptional. The fact that the Super Jumbo and Jumbo results are consistent over all composites, presents Mozambi with the foundations of a superior asset. We continue to see ever growing demand for Super Jumbo and Jumbo flake sizes and this is borne out in the significant price premium these products command. Coupled with the fact that the flakes are liberating easily, gives us great confidence that we are very well placed to capitalise on the Namangale asset.

Figure 1 in link below shows the location of the Namangale Project tenements and the main graphite prospects that have been identified to date. These lay within the 2,000km2 of the Company's tenement package. Mozambi has continued to build on its dominant tenement position in this extremely well located, high quality graphite area of Tanzania.

Namangale Flake Size Distribution Results

Flake size distribution results from 9 diamond core composites from 6 drill holes at the Namangale 1, 2 and 3 deposits have returned exceptional flake size results with up to 57.9% Super Jumbo Flake (i.e. size of larger than 600µm), with low proportions of fine and amorphous graphite from all composites. Assay results from Namangale 2 returned 94.5% of graphite in the Super Jumbo, Jumbo and Large Flakes sizes with all other samples returning highly encouraging results. These results are in addition to the flake size distribution results released to the ASX on the 11th of January


Results Summary

The results of the flake size distribution of the diamond core composites confirm the coarse flake nature of the mineralisation identified in the Optical Microscopy carried out by ALS Metallurgy based in Perth Western Australia. Results of Optical Mineralogy examination of samples from Namangale 1, 2 and 3 previously reported show large flakes are present at all three deposits and individual flakes were mostly liberated by crushing to between 0.5-1.0mm.

Graphite flakes in the 1mm to 0.5mm size frequently contained large graphite flakes up to 1000 microns in size. These results were produced with no chemical processing and indicate mineralisation from this area has the potential to achieve excellent levels of graphite concentration using a low cost flotation separation without crushing to fine particle sizes or using chemical treatments. The proportion of larger flake sizes will reduce with further processing required to make a graphite concentrate. Multi element analysis of graphite mineralisation has also shown low levels of trace elements, which therefore creates a clean graphite product.


2016 Exploration Program

Preparations for the 2016 field season are now well advanced with activities planned to commence by mid-March. The objective of the 2016 exploration program is to upgrade a significant portion of the Inferred JORC Resource at Namangale to the Indicated and Measured Resource categories to allow the calculation of Mineral Reserves, following the completion of a PFS. The 2016 Drilling program will also include sterilisation drilling under proposed waste dump and tails dam locations, geo-tech diamond drill holes and the constructing water bores, as the Company looks to fast track the Namangale Project towards production.


Existing Infrastructure

Mozambi Resources enjoys excellent infrastructure, with the deep-water Mtwara Port only 140km from the Namangale Prospect. Power and sealed roads are available 10km from the deposit location. The existing sealed road connects all the way to port. Figure 2 in link below shows the port, which has existing present capacity of 400,000 metric tonnes per annum and could handle up to 750,000 metric tonnes per annum with the same number of berths if additional equipment is put in place for handling containerised traffici. The port is currently heavily underutilised, with only approximately 34% of its existing capacity being utilised.

Corporate

Discussions are ongoing with a number of potential end user groups as Mozambi works towards marketing our graphite products for potential offtake agreements. Strong demand is continuing for Super Jumbo and Jumbo flake graphite from end user companies in the Lithium - Ion battery markets. The Company is also in the final stages of discussions with potential PFS consulting firms, with an announcement anticipated in the near future.


Conclusion

The Board of Mozambi Resources considers the results to date continue to indicate that the Namangale Prospect is rapidly emerging as a world-class graphite deposit. Preparations to begin the 2016 drilling season are now well advanced to update a significant portion of the Inferred Resource into Indicated and Measured categories. Mozambi is totally committed to fast tracking towards production and meeting the unprecedented market demand for Super Jumbo and Jumbo flake graphite.

To view figures and tables, please visit:
http://media.abnnewswire.net/media/en/docs/82977-ASX-MOZ-439963.pdf


About Mozambi Resources Ltd:

Mozambi Resources Ltd. (ASX:MOZ) is a graphite exploration company listed on the Australian Stock Exchange under the ASX code MOZ. The Company is focused on the exploration and development of its existing exploration licenses in Queensland and Mozambique and the identification of further assets globally which have the potential to add to value to shareholders.



Contact:

Mozambi Resources Ltd.
Alan Armstrong, Managing Director
TEL: +61-3-9614-0600
FAX: +61-3-9614-0550