Ancuabe Project

The Ancuabe project is located approximately 60km west from Pemba, in northern Mozambique. As can be seen in Figure 1 below, the Company tenement holding surrounds the historic Ancuabe Mine.

Figure 1. Ancuabe Project licenses

EXPLORATION PROSPECTS

A program comprising over 1,800 line km of the helicopter-borne geophysical survey of VTEM Plus (Full-Waveform) and magnetic gradiometer (VTEM Survey) was completed over the Ancuabe project licenses late in 2014. Whilst the majority of the survey data is still being processed and finalised, Triton is pleased to confirm that three (3) new large and significant conductive responses (typical of high grade graphite mineralisation) have been identified within License 5336 of the project area.

Prospect area 1 (Figure 2 below) is particularly significant as it appears to form a potential satellite mineralised body along strike north east from the historic Ancuabe graphite mine, which is currently held by Graphite Kropfmuehl (GK), the operational graphite division of AMG Mining. Further, this location is important given its close proximity to the small functioning graphite processing plant at the Ancuabe graphite mine site.

Figure 2. VTEM Target Areas and initial rock chip sample results

These prospects, which are supported by positive rock chip sampling results, offer Triton the opportunity to test for additional near-surface high-grade, high purity and very large flake graphite with similar liberation characteristics to those of the resource material located at Nicanda Hill.

JUMBO GRAPHITE FLAKE

Reconnaissance mapping and sampling undertaken at Ancuabe during the year, which was completed in the southern portion of prospect area 1 (Figure 2 above), identified a substantial amount of graphitic outcropping in several locations, over a distance of approximately 3.5kms.

Visual inspections of the rock samples taken from License 5336, appear to show a high proportion of large, jumbo and super-jumbo graphite flake, that appears to readily separate on the outer surface of the rock chip samples (refer to figure 3).

Figure 3 shows examples of super-jumbo graphite flakes liberated from rock chip samples found on License 5336. The scale clearly shows that the graphite flakes obtained from the Ancuabe samples are well in excess of the 2000 µm (2mm).

The Company believes that, based on both visual inspections and assays of the rock chip samples obtained from License 5336, that there is abundant graphitic mineralisation in these samples, when compared those discovered in License 5380 in 2013.

Figure 3. Observed graphite flakes obtained from the Ancuabe rock chips (in excess of 2000µm)

Very large flake graphite sourced from Ancuabe, may provide Triton the ability to produce a wide size range of high quality graphite concentrates in order to cater for a variety of end-user requirements. Further, the Ancuabe project could position Triton to take advantage of the expected future increase in demand for jumbo and large flake graphite, as highlighted in Stormcrow Capital Limited’s Graphite Sector Initiation report from 2014 (Table 1 below).

Table 1. Proportions of Flake Demand, by Year
(Source. Stormcrow Capital Ltd’s “Graphite Sector Initiation”, 9 June 2014, p.10.)

BEST FLAKE DISTRIBUTION IN THE GRAPHITE SECTOR

By world standards, Triton’s Ancuabe material compares favorably when benchmarked against various other graphite deposits. Table 2, shows a graphical representation of the main flake size categories and the characteristic flake distribution for each deposit within these categories.

Ancuabe graphite has the best flake size distribution in the world and the largest majority of jumbo and super jumbo graphite flakes

Most significantly, is the dominant proportion of recovered large flakes sizes at the Ancuabe project, with over 92% at >100 mesh (150µm).

Figure 4. Sample of graphite concentrate from Ancuabe at 98% TGC.

Triton considers that these metallurgical results confirm that Ancuabe has the potential to become a market leading graphite project. Analysis of publicly released information from peer graphite companies shows that the Ancuabe graphite has the best flake size distribution in the world and the largest majority of jumbo and super jumbo graphite flakes, with 92.1% of the graphite flakes are than larger than 150µm (+80 mesh) and 84.4% larger than 212µm.

Table 2. Comparison of flake size distributions from various selected published sources
Note: Excepting Triton, there may be a minor error in some categories shown above due to the various styles of reporting with respect to flake size ranges and thus this graph should only be used for approximate comparative purposes

These outstanding results were obtained through a minimal series of crushing, grinding, rougher and cleaner flotation, without the need to complete a regrind of the graphite concentrate. The reduced processing requirements during the graphite flotation will likely have a positive impact for Triton reducing the time and energy needed to complete the process. A yield, or mass pull, of only 15.4% essentially means that less material needs to be processed to produce a specific amount of concentrate.

Ongoing optimisation of the metallurgical process is expected to further enhance the quality of the final product concentrate. The Company is conducting further tests to explore options to reduce energy requirements in the milling circuit, which could further reduce future operating costs.