DNI Metals drills 51 m of 6.37% Cg at Vohitsara

Aug 31, 2017

2017-08-31 11:15 ET – News Release

Mr. Dan Weir reports

DNI’S VOHITSARA SAPROLITIC GRAPHITE PROJECT DRILLING UPDATE

DNI Metals Inc. has provided further drilling results from the Vohitsara saprolitic graphite project in Madagascar.

The latest drill results comprise of a further 16 holes holes and one trench from the Main zone and complement the results from the initial results of three holes (see DNI press release dated July 24, 2017).

To date, 45 air core drill holes and five diamond core hill have been completed with an average depth of the saprolite being approximately 28 metres.

Highlights from the most recent results are available on-line.

These recent results complement the initial results from the Main zone released on July 24, 2017, which included:

VHT0025: 11.5 metres at 7.23 per cent Cg (graphitic carbon) from surface;
VHT0016: 12 metres at 4.14 per cent Cg from 8.5 metres, and 4.5 metres at 5.2 per cent Cg from 25 metres;
VHT0019: 19.5 metres at 6.12 per cent Cg from 10 metres, including 4.5 metres at 10.59 per cent Cg from 19 metres.

Dan Weir, chief executive officer, commented: “We continue to get encouraging results from the drilling. The additional of the diamond core drill will increase the speed of the drilling and support the air core results.”

The company notes the following disclosure:

DNI is building a pilot plant due to the drill results, the positive metallurgical tests and the memorandum of understanding for offtake (see press releases dated Aug. 15 and Aug. 17, 2017).
The purpose of the graphite pilot plant is for testing its properties in Madagascar. The plant will be designed to produce up to 6,000 tonnes of graphite per year, depending on the head grade.

All representative samples were prepared and collected by or under supervision of DNI’s country manager, Steven Goertz. Mr. Goertz is a geologist and is a qualified person under National Instrument 43-101 regulations. Mr. Goertz has approved this press release.

QA/QC (quality assurance/quality control): standards every 20 samples — within acceptable limits/duplicates averaging every 10 samples — results comparable with primary assays. AGAT Laboratories also has internal QAQC procedures — passed.

The samples were processed at AGAT Laboratories in Ontario, Canada. 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. All analysis was preformed using LECO instruments.

About DNI Metals Inc.

DNI Metals owns a commercially permitted saprolite-hosted graphite deposit in Madagascar, located 50 kilometres from the country’s main seaport. The deposit is located less than two kilometress from the paved national highway. DNI intends to develop the Vohitsara project, should the economic viability and technical feasibility be established.

DNI has a graphite wholesale business, in which it buys and sells high-quality graphite.

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