Metals Australia (ASX: MLS) has pulled up what it claims are “exceptionally wide” high-grade graphite zones during diamond drilling at the Lac Rainy project in Quebec, Canada.
The company has now received assays from five holes that were drilled, with results pending for the remaining 12 holes.
Notable results were 70m at 17.1% graphitic carbon (Cg) from 9m, 62.6m at 14% Cg from 119.4m, and 33.3m at 19.9% Cg from 65.7m.
Graphite was intersected in every hole, with graphite mineralisation remaining open at depth in four of the five holes.
Drilling was carried out along 750m of strike, within a high-priority 1.8km zone at the Lac Carheil prospect.
Graphite mineralisation also remains open along strike in both directions.
Metals Australia director Gino D’Anna pointed out the graphite intersections also occurred near surface.
“With such high-grade assay results received from these five holes, the results continue to suggest that Lac Rainy is host to a potentially world-class high-grade natural flake graphite deposit, located in a low risk jurisdiction and in proximity to key infrastructure and mining-related services.”
Additionally, Mr D’Anna said metallurgical test work on the Lac Rainy ore has generated a high purity, large flake and high carbon graphite concentrate.
He added this concentrate was “ideal” for high-end technical applications.
Metals Australia plans to firm up a resource at Lac Carheil that is similar to the nearby Lac Knife deposit to enable commercial production.
Mr D’Anna said the company would also undertake a further detailed metallurgical and mineralogical test work program on ore samples.
He said this will underpin the company’s continuing discussions with potential end-users.
“Given the strategic location of the Lac Rainy project, our focus is on defining potential end-user groups across North America.”
Follow up exploration programs will also be carried out across the project, with Metals Australia reporting there was a “significant number” of untested targets.
Lac Rainy graphite project
Lac Rainy is about 15km from a sealed highway and 22km from the Fermont historic mining town.
The project encompasses 4,600 hectares and comprises 88 mineral claims.
Lac Knife has a current measured and indicated resource of 9.576Mt at 14.77% Cg and an inferred resource of 3.102Mt at 13.25% Cg.