Quantum Graphite has reported some extremely high-grade graphite hits from its Uley mine in South Australia.

Typical graphite grades average around 10-15 per cent.

Quantum (ASX:QGL) says it has unearthed grades as high as 55 per cent graphite in recent drilling.

But news of these extremely high grades was not enough to propel the share price higher, which was sitting at 0.2c on Monday morning.

The drilling program was focused on the Uley Pit 2 area and was designed to confirm the dip and strike continuity of the mineralisation and provide supporting data for feasibility studies into a potential expansion of the mine.

Quantum told investors it hit very high-grade mineralisation near the surface within the Uley Pit 2 area.

Grades ranged from 11.93 per cent at a depth of 8.3m to 55.39 per cent at a depth of 52.3m.

High grades started as close as 4.7m from surface and extended down to 72.5m.

Quantum Graphite (ASX:QGL) shares since relisting in September.
Quantum Graphite (ASX:QGL) shares since relisting in September.

Quantum – formerly known as Valence Industries – relisted on the ASX in late September following three years in securities purgatory after sorting out its debts and finances.

The company suspended operations at its struggling Uley graphite project – which was bleeding cash at a rate of about $300,000 per month — in late 2015, before entering administration in July the following year.

The share price tumbled from highs of 70c to 11.5c before the company was suspended.

Quantum’s shares immediately plummeted almost 96 per cent to 0.5c on re-listing.