Announcement • Jul 12
Castle Minerals Limited Provides Update on More Graphite Zones At Kambale
Castle Minerals Limited provided update on more graphite zones at kambale. 26 holes for 2,660m of a 46-hole, 4,800m RC drilling campaign completed. Good correlation between the presence of observed graphitic schists in holes targeted to intersect high-priority EM conductivity zones. Graphitic schists intersected in areas not drilled before is very encouraging. RC drilling expected to be completed by mid-July. Samples will be prepared in Ghana and flown to Perth for assaying. Sahara Mining Services appointed to provide independent QA /QC review and JORC Exploration Target range estimate. Test work proposal executed with IMO Pty Ltd, Perth. CSA Global retained to provide graphite specific technical assistance. Subject to assay results, a core drilling program will be designed to recover sufficient material for metallurgical test work and flow sheet development Perth. Market commentary continues to indicate continuing strong demand for graphite concentrates and products across most sector uses for the remainder of this decade and in particular the EV battery sector. Junior explorer and project incubator, Castle Minerals Limited ("Castle" or the "Company"), advises 26 holes for 2,660m of the planned 46-hole, 4,800m RC drilling campaign at its Kambale graphite project, Ghana have been completed with early signs of a good correlation between high-priority EM conductivity zones and observed presence of graphitic schists in several holes in areas not previously drilled ("Project")(refer ASX release 14 June 2022). The drilling program is expected to be completed by mid-July with first assay results available in mid- August. Samples will be prepared in Ghana and flown to Perth for analysis. Ghana-based Sahara Mining Services has been appointed to provide independent in-country QA/QC review and a JORC Exploration Target range estimate. Subject to observations and results, a diamond core drilling program will be designed to recover sufficient graphitic schist material for test work and flow sheet development. This is to be undertaken in Perth by IMO Pty Ltd, with whom a proposal has been executed. CSA Global Pty Ltd, Perth, has been retained to provide specialist graphite specific peer review and technical guidance. Project background: The Kambale graphite deposit was identified in the 1960s by Russian geologists prospecting for manganese. The Russians geologists undertook a program of trenching and drilled 25 holes to a maximum depth of 25m. A subsequent report noted "two main zones of graphitic schists averaging around 10% to 15% graphite within which there were higher grade zones and that the graphite is the flaky variety with fine crystals (usually less than 0.25mm)." (Report on the Geology and Minerals of the South Western Part of the Wa Field Sheet, Pobedash, I.D. 1991). The mineralisation consists of north-east trending, sub-parallel zones of meta-sediment which is host to the fine flake graphite. The Lower Proterozoic Birimian (~2.2Ma) meta sedimentary rocks, namely phyllites, and quartz - biotite schists, generally trend north-easterly and dip between 50o and 75o to the north west. The genesis of the flake graphite in Kambale is believed to be the result of high-grade metamorphism (amphibolite-granulite facies), which has converted trapped amorphous carbon into the characteristic fine crystalline layers. Castle reviewed this historical work and a wide-spaced, regional-scale electromagnetic survey dataset inherited from previous licence holder, Newmont Limited. This work outlined a roughly elongate, north- south orientated, ~10km-long region considered prospective for graphitic schist horizons which may host multiple lenses of graphite mineralisation, similar to what is already outlined from drilling and trenching at Kambale. These lenses or horizons can vary in length and be up to 50m wide, creating substantial deposits of graphite. Encouraged by firm graphite prices in 2012, Castle undertook three consecutive phases of drilling comprising RAB (251 holes, 5,621m), aircore (89 holes, 2,808m) and reverse circulation (3 holes, 303m). Mapping noted occasional outcrops of manganese and graphitic schist as well as graphite in termite mounds. Following the completion of the first two phases of Castle's drilling, an independent Mineral Resource estimate defined a maiden Inferred Resource (JORC 2004) of 14.4Mt at 7.2%C (graphitic carbon) for 1.03Mt contained graphite, including 6.0Mt @ 8.6%TC for 0.52Mt contained graphite (JORC 2004)(refer ASX release 24 July 2012). This extended over a strike of 1.25km and to a maximum depth of 110m. A the third phase of drilling extended mineralisation to a total strike length of 2km. In 2012 Castle undertook a very limited program of test work on RC chips, which was not an ideal sample, and returned mixed results. The Government of Ghana has the right to acquire a 10% free carried interest in all licenses in Ghana and is entitled to a 5% Gross Royalty on production. The Kambale licence is currently progressing through a renewal process. An offer of a licence renewal by Ghana MINCOM has been received and requested statutory consideration and annual ground rents paid. Formal receipt of the licence agreement from the Minister's office is now awaited. The graphite market is diverse across industrial, metallurgical, chemical and specialised areas with each sector requiring graphite concentrates with specific qualities. Deposit type, size and geometry, flake size, shape, grade and purity /impurity type of the graphite, along with production costs, proximity to specific market, supply logistics, jurisdiction and many other factors all combine to determine the commercial viability of a particular deposit. The current medium to long term outlook for the broader graphite concentrates market is one of escalating demand and a looming supply deficit driven in particular by its essential use in the fast-growing EV battery and power storage sectors. The reader is directed to numerous recent publications, conference proceedings, market research papers and corporate websites of companies engaged in graphite exploration, project development or production for informed commentary and analysis of the graphite market.