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Lithium Energy nails super grade graphite in QLD

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Matt BirneySponsored
Drilling in a Cloncurry Lithium Energy project.
Camera IconDrilling in a Cloncurry Lithium Energy project. Credit: File

Emerging battery mineral explorer Lithium Energy has nailed some exceptional graphite intercepts at its 100 per cent-owned Burke Graphite Project in Queensland, confirming the project hosts one of the highest-grade graphite deposits globally. Notably, significant intercepts of unusually high-grade graphite over thick widths are reported in multiple drill holes.

Assay results received from seven reverse circulation holes include multiple outstanding intercepts of graphite in excess of 20 per cent total graphitic carbon, or “TGC”. Assays remain pending for a further 22 RC holes with the combined 29 holes drilled having plunged a total 2,589 metres.

Diamond drilling has also been completed with 715m drilled across seven holes with samples submitted for assaying and results expected in the next month or so.

According to Lithium Energy, these preliminary assay grades are exceptionally high when compared with most other known graphite deposits globally. Notable intercepts include a substantial 48m at an eye-catching 21.9 per cent TGC from 45m, 43m at an equally stunning 21.6 per cent TGC from 69m, and a 30m hit that ranks even higher at 23.3 per cent TGC from 84m.

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The drilling results will be used to upgrade the current JORC Inferred Mineral Resource of 6.3Mt at 16 per cent TGC.

Following the Queensland wet season, the company will also embark on a maiden RC and diamond core drilling programme at its Corella graphite project to define a maiden JORC Inferred Mineral Resource. Approximately 2,000m of RC drilling and 200m of diamond drilling is planned at the Corella tenement this year.

The Burke graphite project is located in the Cloncurry region of north-west Queensland, with railway lines from Cloncurry directly to the port in Townsville where the Lansdown Eco-Industrial Precinct is emerging as an important precinct for the production of critical materials for battery technologies in Australia.

Importantly, previous CSIRO test work has confirmed the graphite from the Burke deposit is eminently suitable for use in lithium-ion batteries. Lithium Energy will soon instigate engineering studies to assess the practicality of establishing a Purified Spherical Graphite, or “PSG” anode manufacturing facility in Australia using the Burke graphite as feedstock material.

The insatiable demand for PSG or “battery-grade” graphite for use in lithium-ion batteries is, according to the company, expected to increase ten-fold over the next decade driven by the world’s hyper-acceleration towards electrification. Currently, most of the world’s supply of PSG for use as anode material in electric vehicle batteries is sourced from China. However, the technology used for purification consumes highly toxic chemicals which are dangerous to handle and incredibly detrimental for the environment. Battery manufacturers are therefore quickly seeking alternative sources for graphite, so Lithium Energy is well placed to meet demand.

Significantly, the graphite recovered can be processed by standard flotation technology to international benchmark product categories. Flotation tests have confirmed a concentrate of purity in excess of 95 per cent and up to 99 per cent TGC can be produced using a standard flotation process. The deposit is additionally potentially amenable to low cost open-pit mining.

With stunning preliminary assay data, Lithium Energy’s efforts at developing a high-grade graphite resource in Queensland could become a reality in the next few years.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au

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