Metals Australia Ltd (ASX: MLS) has announced further encouraging results from the 17-hole diamond drilling program completed at its Lac Rainy Graphite Project in Quebec, Canada.
The company reported that assay results were received for two further drill holes, DDH LR19-05, and DDH LR19-06.
The two holes are located at the South Eastern part of the Carheil Graphitic Trend within the high-grade Lac Carheil Prospect. Assays are currently pending for final two holes.
MLS said that the hole LR19-05 intersected four zones of mineralisation resulting in a cumulative graphite mineralised interval of 70.95m. Meanwhile, the hole LR19-06 intersected three zones of graphite mineralisation resulting in a cumulative graphite mineralised interval of 38.36m.
The assays received for LR19-05 includes 30.0m at an average grade of 8.24% Cg at depth from 10.50m to 40.50m, while the assays received for LR19-06 includes 3.46m at an average grade of 5.79% Cg at a depth of 4.90m to 8.36m.
The company reported that both the holes ended in graphite mineralisation and remains open at depth.
Lac Rainy graphite project
Metals Australia’s 100%-owned Lac Rainy graphite project is located in Quebec, Canada. It is within close proximity to Focus Graphite’s Lac Knife Project.
The important prospects of Lac Rainy project are the Lac Carheil and Lac Rainy graphite prospects, which were first discovered in 1989.
Previous exploration at the Lac Rainy graphite project was focused more on the iron potential of the region which means that the true mineralisation and potential of the Lac Rainy Est graphite project has not been fully established.
Diamond drilling program
The company recently completed a 17-hole diamond drilling program at Lac Rainy project.
MLS said that the drilling program has been very successful, with each drill hole intersecting 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 gently dipping to the north-west.
Till date, the company has announced the results for 15 holes, of which 11 drill holes ended in graphite mineralisation and remain open at depth. This shows that the graphite mineralisation at Lac Rainy could potentially be substantially increased in size by deeper drilling.
The company reported that the graphite mineralised strike length that has been mapped and sampled so far exceeds 3,200 meters in length. Of that, approximately 1,600 meters was drill tested by the current drilling program.
High-grade results reported for two holes LR19-05, LR19-06
The company has now announced the assays for two diamond drill holes, LR19-05, and LR19-06. The two holes are located at the South Eastern part of the Carheil Graphitic Trend within the Lac Carheil Prospect.
MLS said that in both drill holes, several major zones of high-grade graphite mineralisation was intersected, with the holes remaining open at depth.
MLS said that the hole LR19-05 intersected four zones of mineralisation resulting in a cumulative graphite mineralised interval of 70.95m.
The assays received for LR19-05 were 30.0m at an average grade of 8.24% Cg at depth from 10.50m to 40.50m; 16.45m at an average grade of 6.41% Cg at a depth from 54.0m to 72.10m; 3.0m at an average grade of 9.66% Cg at a depth from 78.90m to 81.90m; and 21.5m at an average grade of 16.24% Cg at a depth from 98.50m to 120.0m.
The company reported that the hole LR19-06 intersected three zones of graphite mineralisation resulting in a cumulative graphite mineralised interval of 38.36m
The assays received for LR19-06 were 3.46m at an average grade of 5.79% Cg at a depth of 4.90m to 8.36m; 28.40m at an average grade of 15.89% Cg at a depth of 30.50m to 58.90m; and 6.50m at an average grade of 14.64% Cg at a depth of 74.50m to 81.0m.
Latest updates and next steps
MLS reported that a further mapping and sampling program was recently completed with a number of new graphite mineralised zones identified and mapped on surface. Samples were collected for assay and would be submitted shortly to the assay laboratory.
The field mapping and sampling campaign is intended to increase the graphite mineralised strike length beyond the current 3,200 meters.
The company announced that it is planning a detailed geochemistry and geology mapping to determine trends of known mineralised zones and to delineate other Cg anomalies.
Metals Australia said that as part of the next phase of exploration at Lac Rainy, it will be drilling beneath the existing zone of mineralisation, with additional holes planned along strike to the north-west and closer-spaced holes.
The Company reported that once assays for all holes are received, it will commence metallurgical test work and will also commence the compilation of a JORC Compliant resource estimate. Work is already underway with the resource estimation.
Director of Metals Australia, Gino D’Anna stated: “Drilling at Lac Rainy has continued to exceed our expectations. The sheer size of the potential resource coupled with the high-grade nature of the deposit and the at-surface mineralisation, suggests that we have a potentially world-class project on our hands.
We believe that Lac Rainy will be amenable to simple open cut mining. We will shortly begin our next round of metallurgical test work and product specification test work. This work will be undertaken at the same time as the Company seeks to publish its maiden JORC Resource at Lac Rainy.
A mapping and prospecting campaign has recently been completed at Lac Rainy with a number of new discoveries of graphite mineralisation identified and mapped on surface, with samples being collected for assay.
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.
We look forward to providing shareholders with further information about Lac Rainy as it becomes available”.