Lithium Energy’s Axon Graphite revises Mt Dromedary resource

Lithium Energy’s spin-off Axon Graphite revises resource estimate for its Mt Dromedary deposit
Using a 5% TGC cut-off, Mt Dromedary now has a resource of 12.7Mt at 14.5% TGC
Deposit from Novonix is now in line with the Burke and Corella deposits from LEL

Special Report: Lithium Energy has advised that Axon Graphite has updated the resource estimate for the Mt Dromedary deposit using a 5% total graphitic carbon cut-off to bring it in line with the Burke and Corella deposits.

Axon Graphite, which is seeking an ASX listing under the ticker AXG, encompasses the merger of Lithium Energy’s (ASX:LEL) Burke and Corella deposits with Novonix’s (ASX:NVX) Mt Dromedary deposit in north-west Queensland.

As part of the initial public offering process, Axon Graphite undertook a review of Mt Dromedary that led to the updating of its resource to 12.7Mt grading 14.5% total graphitic carbon (TGC), or 1.83Mt contained graphite.

More than half of this, or 8.3Mt at 15.2% TGC, is contained within the higher confidence indicated category that allows for mine planning.

Adding further interest, there is a higher-grade resource of 8.5Mt at 18.4% TGC at a cut-off grade of 10%TGC, or 1.56Mt of contained graphite, within the mineralisation envelope.

Graphite synergy

The updated resource using a 5% TGC cut-off ensures that Mt Dromedary is consistent with the resources for Burke and Corella, a hugely relevant development given that the combination of Mt Dromedary and Burke creates the potential for significant operational synergies and economies of scale through a potentially larger scale open-pit mining operation.

This will in turn provide feedstock for a vertically integrated BAM Facility based in Queensland.

Burke has a resource of 9.1Mt at 14.4% TGC, or 1.31Mt of contained graphite, while Corella has a resource of 13.5Mt at 9.5% TGC, or 1.28Mt of contained graphite.

These three graphite deposits have a combined inventory of 4.42Mt of contained graphite.

On completion of the IPO and its entry into the ASX, Axon plans to review existing drilling data and resource models for the Burke and Mt Dromedary deposits to delineate a combined resource.

It will also carry out resource development drilling to increase and upgrade the combined resource.

This article was developed in collaboration with Lithium Energy, 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.