Berkwood Resources Ltd (CVE:BKR) shares headed north as it revealed it had sent its geophysics crew to the Zone 1 graphite target at its Lac Gueret South project in Quebec.
They will be conducting a Mise a la Masse electromagnetic programme intended to further define the graphite discovery at the zone, where 27 HQ diamond drill holes have been sunk over three programmes and every hole hit visible graphite.
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The Zone 1 discovery lies 8km southwest of Mason Graphite's deposit, which is the subject of a current feasibility study.
Berkwood believes the deposit has a similar structure to the Lac Gueret deposit, which hosts one of the highest-grade graphite deposits in the world.
Mason is concluding its permitting process to start development in 2018.
This will benefit Berkwood as the commissioning of an adjacent mine will ensure the development infrastructure in the area.
"We look forward to receiving the results and furthering the understanding of our Zone 1 graphite discovery," Tom Yingling, president and chief executive at Berkwood, said.
"We are also very honoured to welcome the SIDEX fund and Fonds de Solidarite FTQ as new shareholders; we are thrilled that SIDEX has financed the work programmes proposed at the Lac Gueret graphite and the Ford cobalt project and that the Fonds de Solidarite FTQ has provided working capital as part of their common Field-Action 2018 programme."
Berkwood shares advanced 18.75% to C%0.095 in Toronto.