Multiple thick & high grade graphite intercepts
Our graphite exploration Investment Sarytogan Graphite Ltd (ASX: SGA) has reported multiple thick and high grade assay results from its first round of drilling at the Sarytogan Graphite Deposit in Central Kazakhstan.
SGA also reported that it has drilled holes outside of the project’s current JORC mineral resource estimate area — graphite mineralisation has been logged here and assays are pending for these holes. We are very interested to see these assays and any graphite mineralisation hit outside of the existing resource area.
Today’s announcement follows our site visit to the project in Kazakhstan last week. You can read about that in our weekend update here: Kazakhstan site visit - first impressions.
Drill rig and support equipment at the Central Graphite Zone:
SGA today reported that five of the first seven diamond drill holes from the Central Graphite Zone displayed broad thicknesses of high-grade graphite mineralisation, with grades of up to 41.5% TGC recorded in places.
The results include multiple thicker and higher-grade results than the historical information that was used to estimate the current JORC Mineral Resource of 209Mt @ 28.5% TGC (Inferred) in the same area and have the potential to significantly expand the already giant resource.
To date, 13 holes for 1,297m have been drilled from the ongoing 4,000m program with assays pending for six of these holes.
First High-Grade Graphite Drill Core from the 2022 Program; grading 38% TGC in this interval:
Drilling is continuing to the north-east of the Central Graphite Zone, and holes have been drilled outside of the current resource estimate area. Graphite mineralisation has been logged in these holes and assays are pending.
What’s next?
SGA’s next steps include ongoing diamond drilling, metallurgical test-work and a revised Mineral Resource in Q1 2023.
We were impressed with today’s assay results, as was SGA Managing Director Sean Gregory who said the results were “outstanding” and “exceeded expectations”, and we are keen to see the drilling results from outside of the existing resource area.
But given that SGA already has a large high grade mineral resource estimate (the second largest on the ASX), we are most interested in seeing the results of metallurgical testwork and for SGA to determine the flake size distribution of its graphite resource.
SGA reports that this met test-work is now underway and will include further flotation, sintering and leaching. An understanding of the flake size distribution is key to knowing the types of products that SGA’s graphite may be suitable for and therefore, the price it could command.
Today’s announcement follows our site visit to the project in Kazakhstan last week. You can read about that in our weekend update here: Kazakhstan site visit - first impressions.
