Talga Resources (ASX: TLG) is testing for strike and depth extensions of the current graphite resource at its Raitajärvi graphite deposit in north Sweden in a new round of drilling.
The company has begun a 31-hole, 3,800 metre diamond drilling campaign targeting an increase in the size and confidence of the current graphite resource that includes 49% large to jumbo flake size.
Importantly, a new resource estimate will allow scoping studies to begin on targeting a potential 10 year mine life operation.
Additionally, the drillcore will provide detailed geological, structural and metallurgical information to potentially fast track the deposit to preliminary economic studies.
In 2012, Talga used historic drilling to define an initial JORC Inferred Resource of 0.5 million tonnes at 10.8% graphite over about 300 metres strike and to 70 metres depth.
The resource is open both along strike and at depth.
The remainder of 3,000 metres of strike is yet to be comprehensively tested.
The widths and grades of graphite detected outside the current resource highlight the potential for a substantial increase in the size of the resource.
Graphite at Raitajärvi is hosted by a sequence of metasediments and schists.
In the four holes completed so far, multiple zones of graphite up to 35 metres down hole width have been intersected.
These holes are located up to 100 metres south of the current resource, confirming the potential for a significant upgrade in resource size.
The zones appear to compare favourably with those intersected in historic drilling within the resource area.
Drilling is expected to be completed by the end of March with assays due within a further four to six weeks.
Talga had around A$1.7 million in cash at the end of December 2012.
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