Renascor Resources Limited Stock Market Press Releases and Company Profile
Extensive Thick Graphite Intersections at Arno Graphite Project
Extensive Thick Graphite Intersections at Arno Graphite Project

Adelaide, Feb 10, 2016 AEST (ABN Newswire) - Renascor Resources (googlechartASX:RNU) is pleased to announce initial assay results from its recently completed reverse circulation drill program at its high-grade, coarse-flake Arno Graphite Project in South Australia's Eyre Peninsula.

Key Points:

- Broad intervals of near-surface, high-grade graphite intersected at Renascor's Arno Graphite Project in South Australia's Eyre Peninsula, with assay results for total graphitic carbon (TGC) from the initial 10 holes from 24-hole program including:

o 23m @ 12.9% TGC (from 12m), including 19m @ 14.8% TGC (from 12m) (Siv014)

o 31m @ 7.4% TGC (from 33m), including 18m @ 10.2% TGC (from 42m) (Siv015)

o 30m @ 9.0% TGC (from 37m), including 23m @ 10.7% TGC (from 41m) (Siv010)

o 21m @ 8.5% TGC (from 43m) and 10m @ 3.8% TGC (from 31m) (Siv012)

- Graphite was intersected in three north-south oriented traverses across the main Siviour prospect area extending mineralisation 600m west of a previously drilled north-south traverse of five holes which intersected high-grade, coarse flake graphite

- Assay results and geological observation of drill samples in remaining holes indicate continuity of a near flatlying body of graphite mineralisation at shallow depth over the 600m strike length

- Graphite observed in two holes drilled a further 600m to the west suggests mineralisation may be continuous within a high conductive zone extending over at least 1.2km strike and open to the north

- The flat-lying attitude, substantial true thickness and shallow depth of graphite mineralisation appear to mark the Siviour mineralised body as being unique in the Eyre Peninsula

- Renascor expects to report assay results from the remaining holes within the next two to three weeks, after which its next-stage exploration program is planned to include diamond core drilling to further establish mineral recovery and graphite product quality characteristics

To date, Renascor has received assays from 10 drill holes in the 24-hole program, with high-grade results (5% total graphitic carbon (TGC) cut-off) from multiple drill holes, including: 19m @ 14.8% TGC (from 12m) (Siv014), 18m @ 10.2% TGC (from 42m) (SIV015) and 23m @ 10.7% TGC (from 41m) (Siv010). The available assay results and geological observation of the remaining drill samples indicate continuity of a near-flat lying body of graphite mineralisation at shallow depths within the Siviour prospect area.

The flat-lying attitude, substantial true thickness and shallow depth of graphite mineralisation appear to mark the main mineralised body as being unique in the region. Renascor expects to report additional assay results within the next two to three weeks, after which its next-stage exploration program is planned to include core drilling to further establish mineral recovery and graphite product quality characteristics.

Commenting on the project, Renascor Managing Director David Christensen stated: We are delighted with the preliminary drill results, which have confirmed significant extensions to previous high-grade, coarse-flake graphite. Pending receipt of complete assays from the program, the Siviour mineralised body is very quickly being established as a large, near flat-lying graphite body with strong potential to become a commercial graphite resource in the short term.

Recent drill program

Renascor recently completed an approximately 1,550m, 24-hole reverse circulation drill program intended to test for extensions to previously intersected coarse-flake, high-grade graphite. As shown in Figure 3 below, the program included a series of drill traverse designed to test for continuity of graphite mineralisation to the west of previous drilling across high electromagnetic (EM) conductive zones within the Siviour prospect area. To date, Renascor has received assays for 10 holes, all of which were drilled within the Siviour prospect. The assays confirm the westward extension of highgrade graphite mineralisation at Siviour. Visual observations of the remaining five drill holes at Siviour suggest continuity of a near flat-lying body of graphite mineralisation at shallow depths.

The program also included three additional reconnaissance drill holes testing the Sivour West prospect (to the immediate west of Siviour) and a further three holes testing the Paxtons prospect (located approximately 1km southeast of Siviour). Renascor has not yet received assay results for these holes.

Three additional holes drilled at the Malbrom prospect (located approximately 3km to the southwest of Siviour) did not intersect significant graphite mineralisation and were not submitted for assays.

Siviour and Siviour West prospects

The program's main focus was the Siviour prospect, the largest and most advanced prospect in the project area. See Figures 3, 5 and 6 in link below. Within the eastern portion of the Siviour EM anomaly, five holes had been previously drilled on a north-south oriented section (Section 632340E), intersecting significant intervals of high-grade, coarse-flake graphite at shallow depths. As shown in Figure 4 in link below, Renascor's interpretation of drilling results and conductivity interpreted from the EM data suggests a flat-lying, shallow conductive zone extending approximately 400m north-south. Importantly, the broad graphite intersections across the section show an excellent correlation with the interpreted conductivity anomaly.

The recent drill program included 18 holes testing the area immediately west of Section 632340E, where the high conductivity zone appears to extend for +1,200m, at a comparable thickness and shallower depth. See Figures 5 and 6. Within the Siviour prospect, Renascor completed 15 holes over three north-south oriented traverses extending west at approximately 200m intervals from Section 632340E. To date, Renascor has received assay results from 10 of these drill holes, confirming the westward extension of high-grade graphite mineralisation, with results including:

o 23m @ 12.9% TGC (2% cut-off) (from 12m), including 19m @ 14.8% TGC (5% cut-off) (from 12m) (Siv014)

o 31m @ 7.4% TGC (2% cut-off) (from 33m), including 18m @ 10.2% TGC (5% cut-off) (from 42m) (Siv015)

o 30m @ 9.0% TGC (2% cut-off) (from 37m), including 23m @ 10.7% TGC (5% cut-off) (from 41m) (Siv010)

o 21m @ 8.5% TGC (5% cut-off) (from 43m) (Siv012) and 10m @ 3.8% TGC (2% cutoff) (from 31m) (Siv012)

Complete drill details received to date are provided in Table 1 in link below.

The available assays results, together with visual observation of the remaining holes within the three north-south traverses, indicate extensive graphite mineralisation in 14 holes. As show in Figures 5 and 6, the drill results indicate that there is a near-flat lying body of graphite mineralisation at shallow depths extending for at least 600m west of Section 632340E. The program also included three additional holes drilled a further 600m to the west, within the Siviour West EM anomaly. See Figure 3. Renascor's visual examination of drill samples from two of these holes recorded extensive graphite mineralisation, suggesting mineralisation may be continuous within a high conductive zone covering both the main Siviour prospect area and the Siviour West EM anomaly, thus extending the graphite mineralised zone to over 1.2km and remaining open in all directions.

Metallurgical and petrology tests

Preliminary metallurgical test work previously undertaken has established favourable characteristics in respect of recovery and purity of concentrates in the project area. In 2014, ALS Metallurgy performed flotation and gravity tests from a historical core hole (CRA090) drilled within the Paxtons prospect, on the eastern margin an EM conductive zone located approximately 1km southeast of the Siviour prospect. The hole, which was drilled to test for uranium and not originally assayed for graphite, intersected 24m of graphitic mineralisation, which subsequent assaying has shown included 12.4m @ 8.1% TGC from 67.7m. See Figure 8. ALS Metallurgy performed bench flotation and gravity tests over a 2.5kg core sample from CRA090, obtaining carbon (graphite) recovery of 87% and producing 93% purity of concentrates.

While detailed metallurgy has not yet been completed over the higher-grade areas that have now been defined over the Siviour prospect area, petrological description of samples from Section 632340E has established the presence of coarse flake graphite within the high-grade zones. In 2015, 13 samples from high-grade portions of SIV003 and SIV004, as well as SIV005 (located approximately 800m north of Siviour West within in Buckies prospect), returned flake size of up to 1,600µm, with average lengths in the jumbo to super jumbo categories, ranging from 400µm to 800µm. While this preliminary petrological testing is not conclusive, Renascor considers it to suggest the potential for the Siviour prospect to host material amounts of coarse-flake graphite. Renascor is planning on performing more definitive metallurgical testing after having completed core drilling over the Siviour prospect as part of its next-state exploration program.

Next steps

The preliminary results suggest that Renascor has identified a near flat-lying graphite mineralised body of potentially significant scale. The flat-lying attitude, substantial true thickness and shallow depth of graphite mineralisation appear to mark the Siviour mineralised body as being unique in the region and favoured in terms of both its potential size and strip ratio. Renascor expects to report additional assay results within the next two to three weeks, after which its next-stage exploration program is planned to include core drilling to further establish mineral recovery and graphite product quality characteristics.

To view tables and figures, please visit:
http://media.abnnewswire.net/media/en/docs/82709-ASX-RNU-20160210.pdf


About Renascor Resources Limited

Renascor Resources ASX:RNURenascor Resources Limited (ASX:RNU) is engaged in exploration for copper, gold, uranium and other minerals in Australia. The Company's projects include Arno Graphite Project, which consists of four granted exploration licenses: ELs 5618, 5204, 5496 and 5714, covering approximately 1,372 square kilometers in the Eyre Peninsula.

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Contact

Mr David Christensen
Managing Director

Mr Angelo Gaudio
Company Secretary
T: +61 8 8363 6989
E: info@renascor.com.au



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