Diversified metals exploration company, Metals Australia announced that the company has commenced its field exploration program at the Lac Rainy Nord and Lac Rainy Est Graphite Projects, located in Quebec, Canada.

Multiple thick zones of highly conductive graphite mineralisation have been identified at the projects following the recently completed Airborne MAG and TDEM surveys.

The Lac Rainy Nord and Lac Rainy Est Graphite Projects cover an area of 3,714 hectares and are contiguous with a number of advanced and high grade natural flake graphite projects, including Focus Graphite’s Lac Knife Graphite Deposit, the high grade Carheil Prospect previously owned by Mazarin, the high grade Permit 861 graphite prospect previously owned by Nevado Resources Corp and the Nevado Resources Corp Fermont Property.

Commenting on the commencement of the field program, Mr Gino D’Anna, a Director of MLS stated:

“Previous prospecting campaigns have identified high grade natural flake vein-hosted graphite outcrops on surface at Lac Rainy Est which yielded exceptionally high grade results up to 28.1% Cg.

With the recent completion of the EM and TDEM surveys, we have assembled a significant catalogue of follow up targets. Our focus will be on the high grade surface mineralised zones which will be further explored through mechanised trenching, channel sampling and drill target preparation. We will also be conducting a thorough metallurgical testing campaign, designed to demonstrate that our Lac Rainy graphite product has the ability to supply the growing Spherical Graphite market, a key component in the lithium-ion battery.

Multiple new zones of thick graphite mineralisation have been identified which, historically, have only ever been subject to limited exploration.This supports our belief that significant tonnages of high grade vein-hosted natural flake graphite exists on our projects.”

On 30 May 2017, the Company reported the results of high grade outcrop samples at the Lac Rainy Est Graphite Project, confirming the presence of extensive and thick high grade natural flake graphite mineralised horizons on the property.

These rock samples, collected from surface exposures of vein-hosted graphite demonstrate the potential of the projects to host high grade graphite which starts at surface. High grade samples taken at the Lac Rainy Est Project include:

  • 28.10% Cg in Sample 2413
  • 23.81% Cg in Sample 2407
  • 20.85% Cg in Sample 2410
  • 20.74% Cg in Sample 2406
  • 19.50% Cg in Sample 2411
  • 18.82% Cg in Sample 2408

The samples, which were taken along strike of the high grade Carheil Prospect, have been delineated over 1.6km strike length, and confirms that the Lac Rainy Est Project is highly prospective for high grade vein-hosted natural flake graphite mineralisation. The presence of high grade graphite at surface combined with the close proximity of other high grade graphitic carbon results at nearby deposits and occurrences highlights the strong potential for further graphite mineralisation to be identified at the Lac Rainy Nord and Lac Rainy Est Graphite Projects.

Field Exploration Program The Company has commenced its field exploration campaign at the Lac Rainy Nord and Lac Rainy Est projects. This phase of the exploration campaign will consist of mechanised trenching, additional surface rock sampling, geological mapping and drill target preparation.

As part of this second phase exploration campaign, the Company will seek to build on the historical exploration and will target additional extensions of the existing high grade graphite mineralisation present on both project areas. The additional targets which have been identified through the MAG and TDEM surveys will also be prioritised as part of this field exploration program.

It is anticipated that this program will take approximately 2 weeks to complete and depending on the outcome of the field exploration program, the Company will seek to commence a reconnaissance drilling program. In the Manicouagan and Lac Knife area of north-east Quebec where the Lac Rainy projects are located, high grade graphite mineralisation is known to be significantly conductive and to be sometimes found in association with sulfides, among which pyrrhotite and pyrite are the dominant minerals.

In this specific context, strong EM conductors associated with magnetic anomalies is the expected geophysical signature for this type of mineralisation, but less magnetic conductors can also be of interest since it could indicate graphite mineralisation with low sulfides concentration. Based on this analysis, and in an attempt to guide ground follow up efforts, EM anomaly clusters that are particularly strong, wide and continuous have been grouped together to define prospective areas within the Project boundaries.

These compact groups of conductors are more likely to relate to graphitic horizons tightly folded, with horizons repetitions or thickening, or to sub-horizontal or gently dipping sources, and are therefore deemed of particular interest for the exploration of significant mineralised rock volumes near surface. In total, 10 prospective areas have been identified in this manner.

The MAG and TDEM surveys have confirmed the western extension of the high grade Carheil Prospect, which is located south-east and along strike of the Lac Rainy Est Graphite Project, and continues into our project. The previously reported high grade graphite results from outcropping zones are located within this extensive conductive corridor.

In addition to confirming the western extension within and across the project area, a number of new targets at Lac Rainy Est have also been highlighted through the MAG and TDEM surveys which will be followed up as part of this Phase II field exploration campaign. A number of significant graphite mineralised conductors on the northern portion of the Lac Rainy Nord Graphite Project have also been identified by the MAG and TDEM surveys.

The identification of these mineralised conductors supports the view that extensive high grade graphite mineralisation exists along strike from the Lac Knife Graphite Deposit, into our Lac Rainy Nord project and continues for an extensive strike length in excess of 6 km. The extensive magnetic conductors at the Lac Rainy Nord Graphite Project has confirmed the presence of additional graphite mineralisation in an area where limited historic exploration has occurred.

Significant exploration upside exists at Lac Rainy Nord across the entire strike zone, as supported by the MAG and TDEM survey results. The dominant magnetic conductors present on the adjacent Nevado Resources Fermont Property are closely associated with the graphitic mineralisation located on the Lac Rainy Nord Graphite Project, and appear to be part of a large contiguous body of graphitic mineralisation.

This area will be a priority focus for the Company during this Phase II field exploration campaign. A dominant magnetic conductor has also been identified on the western portion of the Lac Rainy Est Graphite Project. Similar to many areas of the consolidated Lac Rainy projects, this area has only ever been subject to limited historic exploration in a non-systematic manner, and suggests that this is a new zone of mineralisation.

Multiple additional zones of high grade graphite mineralisation have been identified across both projects, and given their close proximity to numerous other high grade graphite deposits and occurrences, including the Lac Knife Deposit with a grade of 14.64% Cg (Measured and Indicated) and the advanced Carheil Prospect with a grade of 35.49% Cg and 40.67% Cg, combined with the favourable infrastructure setting, the Company will be prioritising the exploration of the consolidated Lac Rainy projects. 

As part of the interpretation of the MAG and TDEM surveys, the Company has prioritised certain targets that warrant immediate follow-up through a field based exploration campaign. Additional Claims Acquired at Lac Rainy Est Following the recently complete Airborne MAG and TDEM surveys, the Company identified and acquired additional areas of highly conductive graphite mineralised zones along strike of the high grade Carheil Prospect and adjacent to the existing Lac Rainy Est licence boundaries that were unstaked.

A surface rock sample was collected on the recently acquired ground which returned an assay result of 17.14% Cg over a 5 metre thick horizon (sample 2405). This recently acquired area will be prioritised during the current field exploration program. The global focus on renewable energy and the associated adoption of lithium-ion batteries as an energy storage medium has meant that the immediate inputs required for the manufacture of the lithium-ion battery are gaining significant attention with both investors and mining exploration companies. MLS is positioning itself to be at the forefront of this transformational technological revolution.