Lithium Energy (ASX:LEL) has completed its initial reverse circulation (RC) drilling program at the Sandy Creek prospect within its Capricorn Project, with assay results pending.
The company drilled seven RC holes for a total of 1,708 metres, six of which successfully reached their target depth of up to 300 metres.
During drill chip logging, geological observations indicated only localised chlorite and haematite alteration, with isolated disseminated sulphides observed at less than 1%.
Based on these findings, Lithium Energy decided not to drill the remaining two holes of the originally planned nine-hole program.
Further exploration at Sandy Creek will be dependent on these assay results, which the company anticipates receiving in late May 2026.
Capricorn Project Context
The Sandy Creek prospect forms part of the broader Capricorn Gold-Copper Belt Project in Queensland.
Lithium Energy currently holds a 51% interest in the Capricorn Project tenements and retains the right to acquire the remaining 49% by April 2027.
Previous exploration at the Capricorn Project, as detailed in the FY2025 annual report, has identified potential gold-copper-molybdenum-zinc targets.
The project sits within a district-scale system associated with the historical Mt Morgan gold mine, highlighting its prospective geological setting.
Encouraging re-assayed historic drill core results were previously highlighted at Upper Nine Mile Creek and Limonite Hill within the broader Capricorn Project.
These included intercepts such as 6.2 metres at 1.58% Cu, 5.41% Zn, 65.9 ppm Mo at Upper Nine Mile Creek and 16 metres at 0.57% Cu and 441 ppm Mo at Limonite Hill.
Graphite Battery Anode Material Strategy
Central to Lithium Energy's long-term vision is its strategy to develop a vertically integrated battery anode material (BAM) business within Queensland.
This strategic pivot positions the company to capitalise on the growing demand for critical battery minerals.
This strategy involves advancing its Burke, Mt Dromedary, and Corella graphite projects, all located in Queensland.
These projects collectively hold substantial JORC graphite resources, forming a robust foundation for future development.
A significant portion of the 2-year indicative spend plan, specifically A$4.41 million, is earmarked for graphite project development.
This includes resource upgrade drilling, metallurgical test work, and the design of a BAM demonstration plant, with potential for acceleration if graphite market sentiment improves.
