DNI Metals trenches 21 m of 13.14% Cgr at Vohitsara

Sep 11, 2015

DNI METALS INC.-GRAPHITE-MADAGASCAR-13.14% CGR AVERAGE HEAD GRADE (UP TO 25.3%) OVER 20 METERS

DNI Metals Inc. has received initial assay results from two 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 and magnetic) geophysics over and close to the old French mine workings, and excavation of several trenches in the same area. Trenches extended from one to three metres below natural surface.

DNI’s team of professionals has successfully delineated a main zone of mineralization that extends in excess of two kilometres and averages between 300 to 400 metres in width.

The total initial target area extends for 900 metres along strike; averaging 400 metres wide. Importantly, there are at least two 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 had mineralization close to surface. Results received to date are as follows.

Tr02 — hilltop — 86 metres AMSL:

21 metres averaging 3.41 per cent Cgr;
Including two metres at 6.95 per cent Cgr and three metres at 5.4 per cent Cgr.

Tr03 — side-cut of local topographic high — 25 metres below peak and 66 metres AMSL:

21 metres averaging 13.14 per cent Cgr;
Including five metres at 18.48 per cent Cgr (including one metre at 25.3 per cent Cgr) and four metres at 13.75 per cent Cgr.

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

Dan Weir, chief executive officer 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 letter of intent 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 minutes 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 National Instrument 43-101 regulations.

The samples were processed at Process Research Ortech Inc. and Agat Laboratories, both located in Ontario, Canada. Further processing is continuing 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.

SUMMARY OF ASSAY RESULTS: TRENCHES 01 & 02

Sample no.     Sample ID  Per cent 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