Peninsula Mines directly funded by Korean government
Shares in Peninsula Mines (ASX: PSM) opened 16% higher on Thursday after the company announced that the Korean Government’s Korean Resources Corporation (KORES) had approved direct funding support for 200 metres of drilling on the company’s Yongwon Graphite Project, located approximately 100 km south-east of Seoul in Chungecheongbuk-do Province (Chungju), Central Korea.
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Korea Resources Corporation (KORES) is Korea’s state owned energy and resources enterprise, which was established as the Korea Mining Promotion Corporation in 1967. In 2008, the state-owned company’s name was changed to Korean Resources Corporation (KORES), with a stated vision to grow into one of the global top 20 players in the mining and resources sector by 2020.
KORES aims to meet the natural resources needs of the Korean economy through financial and technical support for exploration and development of resources both domestically and overseas. Consequently, a show of support from KORES is important for PSM as an emerging player with a number of projects in play in the country, all requiring various levels of support from a financial, technical and regulatory perspective.
Peninsula about to embark on 1100 metre drilling program
Approval from the Chungju Local Government is required to allow access for an 1100 metre drilling program at Yongwon, with the objective of defining an Indicated Resource that may then be subjected to initial economic development studies.
Management is of the view that the co-funding of the drilling by KORES will support the drilling access application. Historical KORES trenching across the graphite unit at Yongwon is currently being re-excavated and extended for rock-saw channel sampling.
The objective of the channel sampling is to generate a continuous channel of consistent width that may then be sampled, surveyed and assayed for Total Graphitic Carbon (TGC), to provide information comparable with drilling, with the potential to be incorporated into an Indicated Resource estimate.
Previous channel sampling by the company produced a high grade trenching intersection of 9.7 metres grading 11.7% total graphitic carbon. PSM previously announced encouraging metallurgy that produced high-grade flake graphite concentrate results averaging 97% TGC and 87.3% graphite recovery.
The high purity of the graphite concentrate indicated potential suitability for offtake to spherical graphite processors to supply lithium-ion battery manufacturers in South Korea.
Trenching has not yet tested the entire width of the graphitic unit, and further trenching and channel sampling is underway along an outcrop of the graphitic unit exceeding more than 300 metres.
Commenting on recent developments, PSM’s Managing Director John Dugdale said, “We are very pleased to have obtained the co-funding support from the Korean government for this important drilling program at the Yongwon high grade graphite project”.
Dugdale said the resource definition program had commenced and drilling was expected to commence at Yongwon as soon as possible, pending access approval by the Chungju local government.
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