ASX-listed Quantum Graphite says the first two holes of an eight-hole diamond drilling campaign along the ‘Eastern Conductor’ near its Uley 2 resource on the Eyre Peninsula in South Australia appear to have successfully intercepted multiple graphitic zones. Uley 2 already takes in a hefty 6.3 million tonne resource going 11.1 per cent total graphitic content, or “TGC”.
These initial results are even more intriguing given the proximity to the historical 100-year-old Uley mine, reportedly one of the highest-grade natural flake graphite deposits in the world.
Quantum recently launched the eight-hole campaign as it looks to add more graphite to the existing Uley 2 resource.
The company says visual estimation from one of the holes, MD704, returned three graphitic intervals of 1.3 metres at more than 20 per cent TGC from 51.8m, 1.2m at between 10 per cent and 20 per cent TGC from 57m, together with a broader 7.7m at more than 20 per cent TGC from 62.8m.
The second hole Quantum has drilled along the Eastern Conductor to date, MD 705, it said also hit several graphitic zones.
The ongoing campaign lies to the north of drilling conducted in 2015 along the Eastern Conductor. The company says the mineralisation observed in the new holes has comparable characteristics to intercepts from previous drilling.
Extensive geophysical survey data and structural information from the 2015 drilling was a key factor in determining the targeting of drilling for the current campaign, according to the company.
Quantum says the new graphite intercepts validate its use of geophysical conductive anomalies, such as the Eastern Conductor, as a guide for locating potential graphite mineralisation at its tenure.
Quantum Graphite Managing Director, Sal Catalano said:“Both holes have produced some excellent intersections but the most significant aspect of what we’ve seen at this early stage is confirmation of our understanding of this extraordinary deposit. Our technical team has established a solid working model of Uley and we’re looking forward to extending this beyond Uley 2.”
A third hole from the ongoing drilling along the Eastern Conductor, MD706, is currently underway.
The eight-hole campaign marks the first stage of a two-phase diamond drilling program targeting further graphite mineralisation in the vicinity of Uley 2.
The second phase of the drilling will also test for southerly extensions of the existing resource.
The early signs from the current drilling campaign appear to bode well for Quantum. It sees the Uley 2 deposit as the next stage of development of the historical Uley mine, located a short distance to the north. Given the mine’s pedigree as one of the highest-grade natural flake graphite deposits in the world the follow up work around Uley 2 certainly warrants attention.
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