The program aims to explore a significant portion of its 200ha flake graphite prospect, including the location known as the Beau Zone.

The work at the plant area follows discovery of graphite mineralization in an electrical grounding drill hole adjacent to the plant and subsequent seven diamond drill hole program which intersected graphite zone in five of the holes, in 2002.

Till June, the company will carry out surface trenching and diamond drilling and will make continuous refinements to the program as new information becomes available.

Current National Instrument 43-101 compliant resource of Eagle Graphite current estimate does not include any mineralization from this area.

Eagle Graphite president and CEO Jamie Deith said: "We anticipate that within a few months, we will have greatly improved our understanding of the structural geology of the deposit.

"Having a resource available this close to our plant could significantly broaden our options for further development of the project."