International Graphite Ltd (ASX:IG6) has mobilised two drilling rigs and started drilling at its graphite resource at Springdale in southern Western Australia.
The campaign aims to actively explore new graphite targets and to expand and upgrade the existing resource from inferred to indicated status.
It builds on previous investigation by Comet Resources Ltd (ASX:CRL) and is the first on-ground program of work since International Graphite acquired the tenements in April this year.
Springdale Project inferred mineral resource estimate.
International Graphite executive chairman Phil Hearse said the company was pushing ahead to develop its Springdale resource as quickly as possible.
He added: “Springdale is a vital asset that closes the loop on our plans to establish a new battery graphite supply chain in Western Australia.
“Analysts are forecasting a worldwide graphite shortage by 2025 as electric vehicles and renewable energy drive demand for batteries, so speed to market is becoming very important.
“As a source of high-grade graphite feedstock, Springdale will be key to our ability to produce battery anode graphite to help meet growing demand in Australia and global markets.
“In the short term, samples from Springdale will be used to advance metallurgical test work and to refine the flowsheet for production of battery anode material at Collie.”
Airborne electromagnetic image showing graphite stratigraphic targets in relation to the existing resource.
A program comprising 54 drill holes of about 3,300 metres of reverse circulation (RC) drilling and 12 holes of ~900 metres of diamond drilling has started at Springdale.
Exploration will target the Western Zone and Eastern Zone resource domain to improve the confidence of the resource and to provide additional samples for ongoing metallurgical test work and data for initial geotechnical assessments and mine planning.
In addition, 37 RC holes for a further 3,000 metres will be drilled to further explore the Western and Eastern zones.
Subject to customary approvals, a similar program is expected to follow on the Northern Zone resource.