Syrah Resources has intersected graphitic mineralization from its drilling program at the Balama Graphite Project in Mozambique, with ten holes completed to date in a 14 hole program and the 11th now in progress.

Competion of the tenth hole will enable the company to proceed with the scoping study to start shortly.

Assays for the ongoing drill program at Balama are expected by the end of July.

Syrah said all inferences about the grade of the mineralization in the drill holes in past announcements have been drawn from the grade of the mineralization in the overlying trenches, and based on visual observations that the drill samples are well mineralized and look similar to the trench samples.

The company earlier announced that 328 samples from eight trenches covering 1,800m over the Balama mineralization averaged 14.5% total graphitic carbon (TGC) and also reported that the same samples averaged 0.17% vanadium.

Average grades of the six trenches in the drilling area range from 23.3% TGC in Trench T2 to 12% TGC in Trench T4.

Of particular interest to the drilling, is the close association of Trench T5 which reported 12.7% TGC and BMDD0001 which was drilled directly beneath this trench, down-dip from the mineralization in Trench T5, which averaged a higher grade (15.7% TGC) portion of the trench.

Assay results from the drill hole are awaited.

Syrah said initial core samples from the drilling have been received at the assay laboratory and results are expected in due course.