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Lithium Energy strikes high-grade graphite during maiden drilling at Corella

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By Robin Bromby - 
Lithium Energy ASX LEL graphite drilling Corella Queensland
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Battery anode material hopeful Lithium Energy (ASX: LEL) reports what it terms a significant graphite discovery during maiden drilling at its Corella project near Cloncurry.

The company is at present working on its pre-feasibility study for a vertically integrated purified spherical grade (PSG) manufacturing plant in Queensland which will use bulk flake graphite concentrate from its other Queensland deposit, Burke, located northeast of Cloncurry.

PSG is a battery anode precursor material.

Multiple intercepts over thick widths

Intercepts at Corella included 142m at 9.5% total graphitic carbon (TGC) from surface including 6m at 16.1% TGC and 10m at 13.4%

Other holes returned 133m at 10.1% TGC, also from surface; 83m at 14.8% TGC, 64m at 13.1% TGC; and 54m at 13.7% TGC — with all holes intersecting higher grade intervals including 23m at 27.4% TGC..

Lithium Energy says the assays show thick widths in several drill holes.

Corella is located 40km west of Cloncurry and is near the Flinders Highway, while Burke — 125km from Cloncurry — abuts the Mt Dromedary graphite project owned by Novonix (ASX: NVX).

Burke has an indicated and inferred resource of 9.1 million tonnes at 14.4% TGC.

Potential to expand graphite inventory

Executive chairman William Johnson says the Corella discovery is a highly positive development.

“The potential to add additional graphite from Corella to the already high-grade resource at the Burke tenement, and thus expand overall Burke project graphite inventory, offers the potential for significantly development options for this exciting project,” he added.

Lithium Energy is at present investigating Townsville as the site for its proposed vertically integrated battery anode material manufacturing business.

Argentinian exploration success

At its Solaroz flagship project in Argentina, Lithium Energy has intersected the upper aquifer with conductive brines found in sandstone from 150m down hole.

Solaroz is located in the Salar de Olaroz basin, and sits next to the lithium facility owned by Allkem (ASX: AKE).

Lithium Energy currently has three rigs working at its Argentine project.