Shares in Berkwood Resources Ltd (CVE:BKR) advanced in Toronto as it said it continues to find high grade graphite at the Lac Gueret South project in Quebec.

Five HQ diamond drill holes were drilled at the zone 1 graphite body in this phase 2 programme, the firm said,  with every hole intersecting visible graphite (Cgr).

Assays showed average grades in the range of 13.64 to 21.86% graphite and true thicknesses ranging from 20.9 to 71.1 metres with shorter high-grade interior graphite intervals.

"I am pleased we have succeeded in demonstrating significant graphite in large true thicknesses in our continuing exploration and evaluation programme," said Tom Yingling, the president and chief executive at  Berkwood.

Success is exciting..

"Having had success in every one of the 18 holes drilled to date on zone 1 is very exciting.

"On the basis of the announced results, we are proceeding immediately with stage 3 of the drill program, and we are expediting preliminary metallurgical assessment.

"There is substantial as-yet untested strike length as defined geophysically at zone 1. The field project continues to be managed by the same team that made Berkwood's zone 1 discovery."

The zone 1 target is a system with a 2.2km east-west strike length and 0.6 km width. It shows two parallel zones, which may reflect a large-scale fold.

Lac Gueret South lies in Cote Nord, Quebec, which is a three-hour drive from Baie-Comeau in an area with very good infrastructure.

Near Lac Gueret project..

The project lies directly south of Mason Graphite's advanced Lac Gueret project. Mason is developing one of the largest medium-to high-grade graphite deposits in the world.

Shares added over 10% to C$0.21.