Montero Mining and Exploration Ltd.
TSX VENTURE : MON

Montero Mining and Exploration Ltd.

October 07, 2014 09:17 ET

Moyale Displays Favorable Graphite Characteristics for Development

TORONTO, ONTARIO--(Marketwired - Oct. 7, 2014) - Montero Mining and Exploration Ltd. (TSX VENTURE:MON) ("Montero") is pleased to announce the results of a review of existing information completed on the Moyale Graphite Project in Ethiopia by Don Hains, P. Geo., of Hains Engineering in Toronto. The Moyale deposit is described as having favorable characteristics for development as compared to other global flake graphite deposits.

Don Hains, P.Geo, an expert on graphite geology, has compiled an initial review of historical data and provided a high level summary report to Montero.

A summary of the report prepared by Don Hains was based on previous work undertaken by the Ethiopian Institute of Geological Survey (EIGS) in cooperation with the Norwegian Geological Survey (NGU). The report details the following on the Moyale deposit:

  • An average grade of 8% graphite carbon.
  • Graphite distribution of 40% Jumbo flake and 28% Large flake.
  • Initial trial bench-scale flotation indicated recoveries of up to 94-95% of rougher concentrates.
  • The deposit is open at depth and along strike
Dr. Tony Harwood, President and Chief Executive Officer of Montero commented, "I am pleased to announce that the Moyale Graphite Project has been identified as a quality deposit compared with other global flake graphite deposit by Don Hains, a recognized graphite industry expert. The favorable grade, deposit geometry, metallurgy, and flake size analysis which show 40% Jumbo and 28% Large flake graphite mineralization bode well for its exploration potential."

A historic resource estimate of 460,000 t of contained graphite (Cg) has been developed by the Ethiopian Institute of Geological Surveys (EIGS) in 1999. The historic estimate was based on a cross sectional area methodology for trench profiles assuming a vertical depth of 40m for mineralization for Area II and 20 m for Areas II and III. Data for the estimate was developed from 253 composite samples (2-3m) conducted in 42 trenches during the mid-1990's. Overburden thickness was estimated at approximately 1m thickness and overburden volume estimated approximately equal to the block length. An average specific gravity of 2.2 g/ cm3 was used for mineralized zone and 2.0 g/cm3 used for overburden. The resource estimate excluded very thin graphite bearing zones. The table below summarizes the historic resource estimate.

Historic Resource Estimate - Moyale Graphite Occurrence
(Estimate by Ethiopian Institute of Geological Surveys)
Area Block
Volume
(Total
m
3)
Block
Volume
(OB m
3)
Block
Volume
(Mineralized
m
3)
Tonnage
(Mineralized)
Tonnage
(OB)
Average
Grade
(% graphite)
Contained
Graphite
(tonnes)
I 1292978 38320 1254658 2760247 76640 9.59 261270
II 468078 26226 441852 972074 52452 8.90 89553
III 626325 31303 59023 1309050 62605 8.39 109275
Total 2387381 95849 1755533 5041371 191697 8.96 460098
Source: EIGS, 1999

The historic estimate is not an NI 43-101 compliant resource and is provided only as an indication of the exploration potential of the property. Montero is not treating the historical estimate as a resource and the historic estimate should not be relied upon. No Qualified Person (QP) as defined under NI 43-101 has undertaken sufficient work to verify the historical estimate as a current mineral resource. Retrenching and resampling will be required to verify the historical estimate.

The graphite bearing horizons have been mapped and systematically sampled in shallow trenches. There is significant initial preliminary evidence to demonstrate upside exploration potential at Moyale. An exploration target on the order of 1.5 Mt of contained graphite (Cg) from the three defined areas combined has been developed, assuming that the graphite mineralization has grade and thickness continuity down dip to 100 m vertical depth. Given the current annual demand for natural flake concentrates this would be more adequate as the basis for conducting feasibility studies.

A phased evaluation program of data verification, ground truthing, trenching/pitting and resampling and core drilling has been proposed to assess the mineral potential to a vertical depth of 100m. Metallurgical testwork will form an integral part of the program which is planned to lead to preparation of an NI 43-101 compliant resource and Preliminary Economic Analysis. The budget for the full program is estimated at approximately $1.5 million including contingency allowance.

Key characteristics of the Moyale Graphite deposit are noted in the table below:

Area Grade
(%Cg)
Flake
Size
No.
Lenses
Av. True
Thick.
(m)
Strike
Length
(m)
Continuity
Area 1 8-10 Med-Coarse 2-Main 18-35 500 -700
(Open to W)
Uniformly thick continuous along strike for 100's of metres
Area 3 5-11 Fine 2-Main 6 - 30 1350
(Open to E)
Uniformly thin continuous along strike - grades generally erratic and increases in grade to south-east
Area 2 7-14 Coarse Multiple 7 - 60 100-550 Generally discontinuous along strike

Qualified Person's Statement

This press release has been reviewed by Don Hains, P. Geo., of Hains Engineering in Toronto, a Qualified Person as defined by NI 43-101 and an expert on graphite geology and markets. The press release was further reviewed by Mr. Mike Evans, M.Sc. Pr.Sci.Nat., who is a qualified person for the purpose of National Instrument 43-101 and a Consulting Geologist to Montero.

About Montero Mining & Exploration

Montero Mining and Exploration Ltd. is a mineral exploration and development company engaged in the identification, acquisition, evaluation and exploration of mineral properties focused on rare earth elements (REE) in Tanzania, phosphates in South Africa and graphite in Ethiopia. We remain focused on bringing in a strategic investor for the further development of the high-grade Wigu Hill Rare Earth Element Project, development of our phosphate properties through joint venture and exploration of our graphite asset to define an initial resource. Montero trades on the TSX Venture Exchange under the symbol MON.

Signed. Dr. Tony Harwood - President and CEO

CAUTIONARY STATEMENT: Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This News Release includes certain "forward-looking statements". These statements are based on information currently available to Montero and Montero provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements with respect to Montero's future plans, objectives or goals, including words to the effect that Montero or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of Montero's mineral properties, and Montero's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; the ability to complete financings to fund the necessary expenditures; technological and operational difficulties encountered in connection with Montero's activities; the ability to complete a resource estimation and to complete a feasibility study which recommends a production decision; capital and operating costs vary significantly from estimates, the ability to complete the acquisition announced by Montero on acceptable terms and obtain all necessary regulatory approvals and other matters discussed in this News Release and in filings made with securities regulators. This list is not exhaustive of the factors that may affect any of Montero's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on Montero's forward-looking statements. Montero does not undertake to update any forward-looking statement that may be made from time to time by Montero or on its behalf, except in accordance with applicable securities laws.

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