Lithium Energy (ASX: LEL) has reported significant high-grade graphite intercepts from the first seven reverse circulation drill holes at the Burke-Mt Dromedary graphite projects in Queensland.
The holes are part of an ongoing infill resource development campaign started in December that is focused on the area between the two deposits, and which has so far seen the completion of 29 reverse circulation holes for a total 3,082 metres plus three diamond holes for 250m.
High-grade graphitic schist intervals were encountered in the initial holes with best assays of 32m at 15.3% total graphitic carbon (TGC) from 46m including 10m at 20.6% from 61m, 22m at 14.1% TGC from 49m, 21m at 15% TGC from 47m, and 26m at 18.6% TGC from 31m including 17m at 20.6% from 36m.
The results were all located outside of the current mineral resource estimates for the adjacent projects and show continuity of graphite mineralisation between the deposits.
Indicated and Inferred Resource
Lithium Energy aims to consolidate the discrete resources at Burke and Mt Dromedary into one upgraded and expanded Indicated and Inferred graphite resource after the program finishes this month.
Mt Dromedary has a current indicated and inferred resource of 12.7 million tonnes graphite at 14.5% TGC for 1.83Mt of contained graphite.
Burke hosts 9.1Mt at 14.4% TGC for 1.31Mt of contained graphite.
The average TGC grade of both deposits is significantly higher than the company’s global peers and has potential for resource expansion as the mineralisation is open to the north and south.
Battery Anode Materials
Lithium Energy is investigating the potential development of a vertically-integrated battery anode material business featuring a pilot plant fed by high-quality (+95% TGC) graphite flake concentrate from Burke-Mt Dromedary and the nearby Corella deposit.
Corolla hosts an inferred 13.5Mt at 9.5% TGC for 1.28Mt of contained graphite.
The plant will mechanically shape and spheronise the flakes ahead of chemical purification to form spherical purified graphite (SPG), which could be upgraded to produce coated spheronised purified graphite (CSPG).
The company proposes to sell the SPG and CSPG as battery anode materials for use in the manufacturing of lithium-ion batteries or battery energy storage solution.
