Metals Australia Ltd (ASX: MLS) has announced highly encouraging assay results from further three holes of the 17-hole diamond drilling program at its Lac Rainy Graphite Project in Quebec, Canada.
The company reported that all drill holes (LR19-11, LR19-12, and LR19-14) intersected graphite mineralisation both near surface and at depth, while drill dole DDH LR19-14 remains open at depth.
Significant intercepts include 44.9m at an average grade of 8.05% Cg at a depth from 63.6m to 108.5m; 29.8m at an average grade of 6.77% Cg at a depth from 3.0m to 32.8m including 16.5m at an average grade of 8.3% Cg from 3.0m to 19.5m; and 9.0m at an average grade of 5.11% Cg at a depth from 16.0m to 25.0m.
The company noted that these drill holes were targeting the most North West part of the drill tested area along the Carheil Graphitic trend which was drill tested for 750m in this current program.
MLS said that the holes demonstrate that graphite mineralisation continues along strike over an extensive distance
The company announced that the Carheil Graphitic trend has been drill tested for a strike length of more than 750m and remains open along strike in both directions, North West and South East for over 3.2km
MLS said that its geological team has returned to the Lac Rainy project for further mapping and sampling designed to identify follow-up drill targets.
Lac Rainy project
The Lac Rainy Nord graphite project is located in the most dominant graphite geological regions of Quebec, approximately 22km southwest of the historic mining town of Fermont and 260km north-north-east of city of Sept-Iles.
The project consists of 32 mineral claims covering an area of approximately 16.74 km2.
The Company’s objective for the Project is to define a deposit of sufficient tonnage and graphite grade, similar to the nearby Lac Knife Deposit, to enable commercial production.
Diamond drilling program completed
A 17-hole diamond drilling program was recently completed at the Lac Rainy Graphite Project.
The assay results of five holes were previously reported. The assay results for a further nine holes are still awaited.
The company said that the diamond drilling at the Lac Rainy Project has intersected multiple wide zones of high-grade graphite, near surface, with the Company encountering graphite in every drill hole reported.
Assays reported for 3 more holes
MLS has now reported the assay results for three drill holes, DDH LR19-11, DDH LR19-12, and DDH LR19-14 at the Lac Carheil prospect within the Lac Rainy project and for the North West part of the Carheil Graphitic trend.
These three holes were targeting the most North West part of the drill tested area along the Carheil Graphitic trend which was drill tested for 750m in this current program.
These holes are located the furthest away from the high-grade Lac Carheil prospect which is located at the South East end of the mineralised trend.
Wide graphite zones intersected
The company said that the assay results for LR19-11, LR19-12, and LR19-14 have confirmed that the graphite mineralisation not only extends over a considerable distance along surface but also continues at depth.
MLS noted that as the graphite mineralisation remains open at depth, the resource potential at Lac Rainy is significant and it is expected that considerable upside will be realised from follow-up exploration work.
The company reported that diamond drilling has now tested in excess of 750m of strike at Lac Carheil within the Lac Rainy project area.
MLS said that graphite was intersected in every hole, demonstrating the continuity of the graphite mineralisation both along strike and at depth.
It may be noted that the total mapped mineralised strike at Lac Rainy, including the drill tested area extends approximately 3.2km along strike NW-SE, of which to date only 750m at the SE end has been drill tested.
Results for hole DDH LR19-11
The company reported that drill hole DDH LR19-11 intersected multiple zones of graphite, including 44.9m at an average grade of 8.05% Cg at a depth from 63.6m to 108.5m.
The mineralisation within DDH LR19-11 includes a higher-grade zone over a width of 24.5m with an average grade 9.4% Cg at a depth from 84.0m to 108.5m.
Results for hole DDH LR19-12
MLS said that DDH LR19-12 intersected multiple zones of graphite, including 29.8m at an average grade of 6.77% Cg at a depth from 3.0m to 32.8m including 16.5m at an average grade of 8.3% Cg from 3.0m to 19.5m; and 20.5m at an average grade of 6.78% Cg at a depth from 45.6m to 65.65m including 4.9m at an average grade of 12.67% Cg from 45.6m to 50.5m and 7.15m at an average grade of 7.57% Cg from 58.5m to 65.65m.
Results for hole DDH LR19-14
The company reported that DDH LR19-14 intersected multiple zones of graphite, including 9.0m at an average grade of 5.11% Cg at a depth from 16.0m to 25.0m; 9.0m at an average grade of 6.81% Cg at a depth from 152.0m to 161.0m; and 11.1m at an average grade of 5.73% Cg at a depth from 176.0m to 187.1m where graphite mineralisation remains open at depth.
Mapping and sampling campaign commenced
The Company has recently commenced a further mapping and sampling campaign at the Lac Rainy Graphite Project to identify additional follow-up drill targets.
MLS said that Magnor has transported all of the drill core from site to be stored at the Magnor-owned workshop facilities, located in Saguenay, Quebec. The company said that the drill core will be maintained there in preparation for the next stage of metallurgical testing.
Following receipt of the remaining assay results, the Company plans to send select mineralised zones on a representative basis to the metallurgical processing laboratory for further advanced metallurgical test work. The results of the initial metallurgical testing program completed by the Company were announced in January.
Further work
The company said that detailed geochemistry and geology mapping is planned to determine trends of known mineralised zones and to delineate other Cg anomalies.
The company said that it is also planning further drilling.
Management comments
Director of Metals Australia, Gino D’Anna said: “These drill holes have achieved an important objective for the Company demonstrating that the graphite mineralisation at Lac Rainy extends over a considerable distance of over 750m to the North West from the historical high-grade Lac Carheil prospect, which is located at the South East end of the Carheil Graphitic trend.
Mapping, trenching and channel sampling completed by the Company highlighted the surface exposure of graphite mineralisation but left the question unanswered as to whether the mineralisation continued below surface.
With assay results now received for three of the seven holes drilled into the most North West part of the area drill tested along Carheil Graphitic trend, the Company now has the confidence to conclude that the graphite mineralisation encountered on surface extends at depth. This underpins our belief that the Lac Rainy project is host to a significant resource.
Drilling at Lac Rainy has intersected multiple wide zones of high-grade graphite, with many intersections occurring near surface.
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 close proximity to key infrastructure and mining-related services.
Recent metallurgical testing has demonstrated its ability to produce a high purity, large flake and high carbon graphite concentrate ideal for high-end technical applications.
A further program of detailed metallurgical and mineralogical test work will be completed on selected samples and this advanced metallurgical work will underpin our continued discussions with potential end-user groups.
Given the strategic location of the Lac Rainy project, our focus is on defining potential end-user groups across North America.
We look forward to providing shareholders with further updates as additional assay results are received.”
