DNI Metals Inc.-Graphite-Madagascar-13.14% Cgr average head grade (up to 25.3%) over 20 meters

TSX Venture Exchange Symbol: DNI

TORONTO, Sept. 11, 2015 /CNW/ - DNI Metals Inc., 'DNI', is pleased to announce that it has received initial assay results from two (2) of the trenches that were completed during the initial field campaign at its fully permitted 'Vohitsara' Graphite project in Madagascar.

On July 29, 2015, DNI announced that it had completed its initial Phase 1 development program over the Vohitsara project.  This phase comprised ground (EM & magnetic) geophysics over and close to the old French mine workings, and excavation of several trenches in the same area.  Trenches extended from one (1) to three (3) metres below natural surface.

DNI's team of professionals have successfully delineated a main zone of mineralization that extends in excess of 2 km's and averages between 300 to 400 meters in width.

The total initial target area extends for 900m along strike; averaging 400m wide.  Importantly, there are at least two (2) additional graphite-bearing zones on the property that have not been fully studied.

The group focused on an area that showed large flake Graphite, had historical mining, and that had mineralization close to surface.  Results received to date are as follows:

Tr02 – Hilltop – 86m AMSL:

21m averaging 3.41% Cgr:
Including 2m @ 6.95% Cgr & 3m @ 5.40% Cgr

Tr03 – Side-cut of local topographic high – 25m below peak and 66m AMSL:

21m averaging 13.14% Cgr;
Including 5m @ 18.48% Cgr (incl. 1m @ 25.3% Cgr) & 4m @ 13.75 Cgr)

A full listing of assay results received is listed in the table following.

Dan Weir, CEO of DNI commented, "We are extremely pleased with these results.  Having a deposit that is quite literally a hill of graphite, with the potential of a zero or even negative strip ratio, gives DNI a significant cost advantage. 

DNI has signed a LOI to acquire a Laboratory and Technical Solution Centre.  This facility will allow DNI to save time and hundreds of thousands of dollars in assaying, and pilot plant work for the Madagascar project.  The building can be used to upgrade (purify/shape/coat) graphite. 

On the wholesale side, DNI has delivered its first 20 tonne container of graphite from Brazil to Canada.

With a graphite project in Madagascar, a graphite wholesale business, and a facility 20 mins from downtown Toronto, DNI is moving very quickly to becoming a vertically integrated graphite company.

I am very proud of our whole team, here in Canada, Brazil and Madagascar."

All representative samples were collected under supervision of DNI's Country Manager, Steven Goertz.  Mr. Goertz is a Geologist and is a Qualified Person under JORC and NI43-101 regulations.

The samples were processed at Process Research Ortech Inc. and Agat Laboratories, both located in Ontario, Canada.  Further processing is ongoing to determine particle size distribution and upgrade purity numbers and these results are expected shortly.

Graphitic carbon assays were performed using a modified infrared assay method. This method is preferable to other industry-accepted assay methods; inclusive of varying forms of Loss on Ignition (LOI) testing.

About DNI

DNI Metals Inc. is graphite-focused company currently developing its flagship Vohitsara project in Madagascar.  The project has recently received a full mining permit and development of an NI43-101 compliant resource is underway.  Vohitsara is located 50km by paved road from the principal commercial port of Madagascar at Toamasina; with the main mineralization less than two km from this highway.

DNI also has a wholesale graphite trading division and has recently entered into an LOI to acquire a fully operational commercial laboratory; fully capable in analyzing all aspects of graphite ores.

DNI plans to provide its clients with a Secure, Reliable and Consistent source of Graphite.  DNI is supplying a Chinese alternative.

Further information about DNI, can be found on its website. www.dnimetals.com

SUMMARY OF ASSAY RESULTS: TRENCHES 01 & 02

Sample Number

Sample ID

 %Cgr 

E5203779

Tr02-01

5.90

E5203780

Tr02-02

4.10

E5203781

Tr02-03

2.45

E5203782

Tr02-04

1.97

E5203783

Tr02-05

1.56

E5203784

Tr02-06

1.29

E5203785

Tr02-07

0.95

E5203786

Tr02-08

2.80

E5203787

Tr02-09

10.60

E5203788

Tr02-10

3.30

E5203789

Tr02-11

1.24

E5203790

Tr02-12

1.53

E5203791

Tr02-13

4.17

E5203792

Tr02-14

5.00

E5203793

Tr02-15

6.50

E5203794

Tr02-16

4.70

E5203795

Tr02-17

4.65

E5203796

Tr02-18

3.44

E5203797

Tr02-19

1.38

E5203798

Tr02-20

0.55

E5203799

Tr02-21

3.45

E5203800

Tr03-01

12.60

E5203801

Tr03-02

10.40

E5203802

Tr03-03

11.00

E5203803

Tr03-04

10.20

E5203804

Tr03-05

17.60

E5203805

Tr03-06

25.30

E5203806

Tr03-07

15.70

E5203807

Tr03-08

15.90

E5203808

Tr03-09

17.90

E5203809

Tr03-10

12.40

E5203810

Tr03-11

6.50

E5203811

Tr03-12

9.00

E5203812

Tr03-13

9.50

E5203813

Tr03-14

12.20

E5203814

Tr03-15

11.80

E5203815

Tr03-16

9.80

E5203816

Tr03-17

15.00

E5203817

Tr03-18

12.10

E5203818

Tr03-19

13.50

E5203819

Tr03-20

14.40

 

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSX.V) accepts responsibility for the adequacy or accuracy of this release.

DNI - TSX Venture
DG7N – Frankfurt
Issued: 29,586,204 common shares

We seek Safe Harbour. This announcement includes forward looking statements. While these statements represent DNI's best current judgment, they are subject to risks and uncertainties that could cause actual results to vary, including risk factors listed in DNI's Annual Information Form and its MD&As, all of which are available from SEDAR and on its website.

SOURCE DNI Metals Inc.

For further information: DNI Metals Inc. - Dan Weir, President & CEO, T: 416-595-1195, Email: danweir@dnimetals.com / ir@dnimetals.com.

RELATED LINKS
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