Graphite company iTech Minerals (ASX:ITM) is planning to expand its current resource drilling program at the Lacroma Central Graphite prospect in South Australia.
The $18.93 million market capitalisation company expects drilling to carry into next year, and while it continues, iTech will contact relevant landowners at Lacroma North and Balumba to request access for drilling and, if favourable, negotiate land access agreements.
Once drilling is completed, the company plans to move the drill rig to the next best targets to determine the optimal location to add more resource tonnes to its graphite inventory.
This news comes after iTech conducted a review of the graphite potential across its ‘extensive’ tenure on the Eyre Peninsula, which highlighted the potential for a low-cost mining operation in clay-hosted graphite mineralisation near surface.
The company compiled and merged over 1,470km-square of regional airborne electromagnetics (AEM) surveys covering a ‘significant’ portion of its graphite prospective licences, which generated new targets for exploration.
The company reports these targets, namely the Lacroma North, Balumbah North, and Balumbah targets, add another 10km of prospective strike to its upcoming drilling program.
Lacroma North is twice the size of Lacroma Central and extends for over 5km.
Balumbah is 3km long and has an electromagnetic signature over 3 times as strong as Lacroma Central. Meanwhile, Balumbah North appears to be an extension of Balumbah — bringing the combined target length to over 5km.
Balumbah North has not yet been drilled.
Managing Director Mike Schwarz says drilling has had a ‘strong’ focus on adding resources over the past 4 months and will continue to do so next year.
“The addition of these new drill targets will add over 10km of highly prospective strike length and ensure significant upside to the company’s resource inventory.”
iTech Minerals is a battery and critical minerals explorer focused on its wholly owned assets in Australia.
As of 30 September 2023, the company had $5.23 million cash at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: iTech Minerals