Hexagon Resources Ltd (ASX:HXG) has revealed an updated resource estimate for the McIntosh flake graphite joint venture project (MJV) in Western Australia.
The MJV resource now totals 23.8 million tonnes grading 4.5 % total graphitic carbon (TGC), which is an increase of 12% in contained graphite and a 42% increase in material classified as indicated.
MJV resource (above 3% TGC cut-off grade)
The updated resource estimate was undertaken by Mineral Resources Ltd (ASX:MIN), the manager of MJV (51% MinRes and 49% Hexagon).
Hexagon managing director Mike Rosenstreich said: “This revised resource estimate has significantly improved the confidence of the total resource within the project whilst achieving a modest 12% increment and maintaining the grade.
“This update will feed into the feasibility study currently being undertaken by MinRes.
“Subject to a positive feasibility study, Hexagon’s position is to get McIntosh into production as quickly as possible.
“Following that, we will systematically carry out heritage clearance to prioritise further targets for drill testing to verify the project life potential as highlighted by the Exploration Target estimate.”
Hexagon completed a systematic review of the exploration target estimate using new data from drilling and improved geological understanding on controls of mineralisation.
The revised exploration target estimate is 50 to 100 million tonnes grading 2% to 5% TGC with contained graphite ranging from 1 to 5 million tonnes, excluding the new mineral resource.
Hexagon will now focus on key targets like Marlin, as heritage clearance and environmental surveys are undertaken and areas become available for drilling.
The McIntosh Joint Venture’s other important focus is updating key technical parameters such as the flake size distribution for each of the mineral resources.
As more sample material has become available, more effort is being directed at characterising the flake size distribution for each deposit, which is an important technical and economic parameter of the project.
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Whilst Hexagon’s focus is very much on its downstream business development and providing support as required on the MJV activities, the company is increasing its presence in the US, leveraging off existing important technical relationships.
This is planned as a lead-in for McIntosh products and could include utilising US-sourced graphite, from Charge Minerals, to fast-track the establishment of a Hexagon brand.
This initiative complements and enhances the company’s strong network into Japan, South Korea, Taiwan and China.