Metals Australia Ltd (ASX: MLS) reports that is recent drilling programme at the Lac Rainy Graphite Project in Quebec, Canada intersected a wide-zone of high-grade graphite.
Metals Australia Director Gino D’Anna said that of the 17 holes in the diamond drilling programme has intersected graphite mineralisation varying from mid-grade to very high-grade, with significant graphite mineralisation being encountered close to surface, suggesting a shallow mineralised ore body, which is moderate to highly dipping to the south-west.
“The maiden drilling programme at Lac Rainy has been a resounding success, with every drill hole intersecting graphite mineralisation, varying from mid-grade mineralisation to very high-grade mineralisation,” Mr D’Anna said.
“We have encountered wide zones of graphite mineralisation close to surface and at depth. Many holes ended in mineralisation, highlighting the significant upside that is yet to be realised.
We believe that the Lac Rainy project is a potentially world-class project. The potential size and scale of the resource is significant, boasting not just a high-grade deposit, but also a deposit that starts at surface.
“We believe that Lac Rainy will be amenable to simple open cut mining. SGS has now been engaged to complete the next phase of metallurgical test work and product specification test work. The company has also been progressing with the maiden JORC Resource estimate at Lac Rainy.”
D’Anna said the mapping and prospecting campaign which was recently completed at Lac Rainy has also been successful, with a number of new discoveries of graphite mineralisation identified and mapped on surface.
“Samples have been collected and submitted for analysis. We believe that this mapping campaign will assist in extending the strike of the currently mapped and drilled 3.2km strike of the Carheil Graphitic Trend.
“Planning is also underway for the next phase of exploration at Lac Rainy.”
As part of the next phase of exploration at Lac Rainy, the company will be drilling beneath the existing zone of mineralisation, with additional holes planned along strike to the north-west and closer- spaced holes.
MrnD’Anna said the company will now seek to advance the development of the Lac Rainy project as rapidly as possible, taking advantage of the current shift towards high-value graphite products, such as expandable graphite and thermal graphite applications.