Graphite ho! More drill success puts iTech on the trail to resource growth at Lacroma Central

Infill drilling at iTech Minerals’ 8.55Mt Lacroma Central deposit returns more thick graphite hits
Results from drilling to date indicate “significant resource potential”
Latest assays also confirm that mineralisation extends to surface in the west of the resource area
Drilling to continue over the next 2-3 months to test the full potential

Special Report: Graphite demand remains strong as the electrification of the transport sector continues apace and with the continued return of significant drill intersections, iTech Minerals’ Lacroma Central deposit could well play a key supply role.

The latest batch of infill drilling results continue to deliver assays of remarkably consistent mineralisation widths and grades, a positive indicator that iTech Minerals (ASX:ITM) could potentially develop the deposit as a low-cost mining operation.

Lacroma Central – part of the Campoona project in South Australia’s Eyre Peninsula – already has a resource of 8.55Mt grading 9% total graphitic carbon (TGC) on a granted mining lease.

This mineralisation is hosted in deep weathering clays, which are likely to mean negligible grinding costs – a big plus for project economics.

It is also readily converted into high purity spherical graphite for use in lithium-ion batteries, which is never a bad thing.

Adding interest, a recent review led to the addition of Lacroma North and Balumbah to the company’s list of drill targets.

Lacroma North is twice the size of Lacroma Central and extends for over 5 km. Balumbah is about 3km long and has an EM signature over three times stronger than Lacroma Central’s.

“Significant resource potential”

Results from infill drilling to fill in gaps at Lacroma Central confirm that mineralisation extends to surface in the west of the resource area below a thin veneer of sand.

Notable results are:

92m grading 6.7% TGC from a down-hole depth of 30m including 25m at 8.3% TGC from 38m;

92m at 5.7% TGC from 21m including 6m at 7.9% TGC from 30m and 12m at 8.1% TGC from 93m; and

86m at 5.4% TGC from 7m including 8m at 9.5% TGC from 50m and 10m at 7.7% TGC from 81m.

These are in addition to previously announced assays on the same traverse with a top result of 93m at 6.9% TGC from 64m including 12m at 8% TGC from 67m and 43m at 8.4% TGC from 85m.

ITM has moved the rig to test the southern 1km of strike and has already drilled 16 holes that have intersected graphite, which suggests the continuation of mineralisation to the south and taking the total strike covered by resource drilling up to 1.1km.

“The drilling program continues to deliver results with 88 holes of the resource drilling program completed to date,” managing director Mike Schwarz said.

“With multiple holes intersecting more than 90 metres of graphite mineralisation, Lacroma Central continues to deliver significant resource potential.”

Drill plan of Lacroma Central resource drilling area with latest significant assay results. Pic: Supplied (ITM).

Further drilling

ITM has already drilled 16 holes covering 630m of the 1km southern strike extension and will continue drilling over the next two to three months to test the full potential of the resource area.

This article was developed in collaboration with iTech Minerals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.