Metals Australia identifies high grade graphite

By Trevor Hoey. Published at Apr 23, 2019, in Technology

Metals Australia Ltd (ASX:MLS) is making strong progress in the course of conducting its maiden diamond drilling program at the company’s 100%-owned Lac Rainy Graphite Project in Quebec, Canada.

Diamond drilling at the Lac Rainy project has continued to intersect multiple wide zones of high grade graphite, near surface, with the company encountering graphite in every drill hole, following completion of a total of eleven drill holes.

The six additional drill holes which have been completed since the previous update have been focused on the extensions of the high-grade Lac Carheil prospect along strike in a north-west direction.

The drill holes have intersected the Graphitic Carheil Zone in all drill holes, with DDH LR19-10 intersecting the Upper Branch of the Graphitic Carheil Zone over a width of 26 metres (apparent thickness) from 45 metres to 71 metres.

In addition, DDH LR19-10 intersected the Lower Branch of the Graphitic Carheil Zone over a width of the 3 metres (apparent thickness) from 120 metres to 183 metres.

The image below illustrates the intersections of the Upper Branch and Lower Branch of the Graphitic Carheil Zone intersected in DDH LR19-10.

This hole remains open at depth and future drilling will target deeper mineralisation, as management expects it will lead to a further graphite zone.

Top-class deposit in world-class region

Director of Metals Australia, Mr Gino D’Anna highlighted his increasing confidence that Lac Rainy is potentially a world-class high-grade natural flake graphite deposit in saying, “The company has successfully completed eleven diamond drill holes to date at Lac Rainy, with the additional drill holes focused on the extensions of the high-grade near surface Lac Carheil Prospect along strike in a north-west direction.

“Drilling has continued to intersect multiple wide zones of high-grade graphite, with many intersections occurring near surface.

“The drilling continues to affirm our belief that Lac Rainy is host to a potentially world-class high-grade natural flake graphite deposit.”

Indeed, the deposit is located in highly prospective territory, situated approximately 22 kilometres south-west of the historic mining town of Fermont and 260 kilometres north-northeast of the city of Sept-Îles.

The project covers an area of more than 4,600 hectares representing 88 mineral claims and is contiguous with Focus Graphite’s property to the south-west.

This hosts the Lac Knife Graphite Deposit, containing a Measured and Indicated Resource of approximately 9.6 million tonnes at 14.77% Cg (total carbon in graphite) and an Inferred Resource of 3.1 million tonnes at 13.25% Cg at a 3.0% Cg cut-off.

Offtake discussions continue

D’Anna also noted that recent metallurgical testing had demonstrated its ability to produce a high purity, large flake and high carbon graphite concentrate ideal for high-end technical applications.

Initial samples have been delivered to the assay laboratory, and once those results are received, a further program of detailed metallurgical and mineralogical test work will be completed on selected samples.

This advanced metallurgical work will underpin management’s continued discussions with potential end-user groups.

Should discussions lead to the ratification of off-take agreements, one would expect interest in the stock to grow, as this would represent an endorsement of the quality of the end product, as well as providing some certainty regarding future revenue generation.

S3 Consortium Pty Ltd (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 only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

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S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

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