Peninsula identifies high-grade flake-graphite target

Published 15-AUG-2018 12:20 P.M.


4 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

Peninsula Mines Ltd (ASX:PSM) has set a significant and high-grade flake-graphite Exploration Target estimate of 13 to 17 million tonnes grading 8% to 11% Total Graphitic Carbon (TGC) and containing 1.1 to 1.7 million tonnes of graphite for its 100% owned and granted Gapyeong, Yongwon and Eunha North, Flake Graphite Projects in South Korea.

The potential quantity (tonnage and contained graphite) and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration work conducted to estimate a Mineral Resource and it is uncertain if further exploration will result in the definition of a Mineral Resource at any of the company’s graphite projects.

The Exploration Target estimate is summarised in Table 1 below and has been determined using a combination of exploration data, that includes, mapping and surface channel sampling D1, D2, D14, geophysical modelling of electromagnetics (EM) data and initial drilling at Eunha North, that verified the correlation between channel sampling and EM modelling.

Exploration Target Estimates for Peninsula’s Flake-Graphite Projects in South Korea.

Exploration Target Estimates for Peninsula’s Flake-Graphite Projects in South Korea.

Of course PSM is in the early stages of this ambition, so investors should seek professional financial advice for further information if considering this stock for their portfolio.

Next stages

The next stage of the program is to drill define the graphitic units at the flagship Gapyeong Graphite Project, which represents 85% of the overall Exploration Target estimate.

Drilling access agreements have now been signed with two key private landholders at Gapyeong and, subject to the approval the local Gapyeong-gun Council, this will allow initial drilling to target a core 240m strike length near the centre of the 1,000m mapped strike extent of the targeted Gapyeong graphitic units.

This central zone corresponds with the most intense EM anomalies at Gapyeong, from where the thick and high-grade channel sampling results were recently released. Modelling of the EM conductors and mapping of the graphitic units at Gapyeong indicates the two parallel, high-grade, graphitic units have been folded into a synformal structure.

PSM Managing Director, Jon Dugdale said: “The thickness, high-grade, and steeply dipping geometry of the Gapyeong graphitic units indicates they may be amenable to both open pit and subsequent underground mining, and this potentially under-pins our business model of supplying high quality graphite to the South Korean lithium-ion battery industry.”

The Exploration Target has been extended to the projected depth of the synformal fold structure, up to 350m vertical depth.

Gapyeong Project, rockchip/channel sample locations, EM anomalies and Exploration Target locations.

Gapyeong Project, rockchip/channel sample locations, EM anomalies and Exploration Target locations.

The recent results of the Eunha Graphite Project drilling and channel sampling programs will be further evaluated prior to any decision being made to complete any additional drilling at the Eunha North and/or Eunha Roadhouse Prospects.

Further drilling at Eunha is considered a lower priority than drilling of the higher-grade Gapyeong and Yongwon Projects. MUS has an agreement in place with a key landholder at Eunha North and could resume drilling activities at any stage.

Drilling of the Yongwon Project graphitic unit has been planned but is on hold pending resolution of forest access negotiations with the Chungju City Council. Therefore, timing of approval for drilling access to the Yongwon Project remains uncertain at this stage.

Should an access agreement be negotiated, an up to 23-hole diamond drill program has been designed that would deliver drilling across five 80m spaced sections with 40m spaced drill holes on each section. Metallurgical testing has achieved >95% TGC concentrate grade for all of the projects included in the Exploration Target estimate.

The company will now initiate generation of a second >5kg flake-graphite concentrate sample, from the Gapyeong Project, in addition to the concentrate sample from Eunha. This sample will then be dispatched to Germany in order to carry out down-stream processing testing targeting production of 99.95% purity, uncoated, spherical-graphite to meet the specifications required for lithium-ion battery production as provided by a key anode manufacturer in South Korea.

Sufficient information has been generated to estimate the Exploration Targets for the Gapyeong, Yongwon and Eunha North graphitic units as shown in previous releases listed below. The Daewon graphite target has been insufficiently channel sampled to generate an Exploration Target estimate at this stage.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.


Discover Small Cap
Biotech Stocks

Join thousands of other Investors following our stock commentary for Free