Quantum Graphite (ASX: QGL) says its airborne geophysics have defined a big new high-grade graphite zone about 2.5km long in the north-west area of its Uley 2 exploration licence on South Australia’s Eyre Peninsula.
In early April, the company confirmed the completion of its helicopter-borne versatile time domain electromagnetic (VTEM) and magnetics survey that was part of its planning for Uley 2 and Uley 3 project extensions. It now says the new discovery is centred less than 3km north-west of high-grade mineralisation it defined previously – one of three such high-grade zones identified through the licence area.
The survey acquired district-scale high resolution electromagnetic (EM) and magnetics data and represents the most detailed geophysical survey ever conducted in the region. The program was designed as a final stage in assembling all the data required for the company’s proposed 100-hole reverse-circulation (RC) drilling program.
We know we are seeing the tip of the iceberg at Uley 2 and Uley 3 and the survey data will provide the granular information needed for the upcoming drill program and ongoing resource development. We are now seeing the excellent results of the technical team’s diligence and patience.
Quantum Graphite managing director Sal Catalano
The 900 line-kilometre airborne survey was preceded by a ground-based EM program over both the Uley targets in December last year. It was intended to reconcile geophysical signatures with diamond drillhole information obtained from the target areas during a six-year period up to 2021 that would assist in the design of the airborne survey.
The ground-truthing and signal reconciliation phase is an important orientation process when preparing a geophysical program – even moreso when a regional-scale airborne survey is contemplated, considering time and cost issues and when the prospective target is blind, or of limited outcrop.
Quantum proposes retaining the data from both geophysical surveys to guide its exploration over the Uley target areas and also in any future target development in the district, including the upcoming RC program. The additional detail and extent provided by the airborne EM and magnetics data is expected to enhance the company’s understanding of the local geology and structure and provide additional discovery opportunities.
Management says no previous investigation of the regional geology of the area has delivered a better understanding than it has now. It adds that recent market movements have impressed upon it the urgency of expediting resource development that will potentially underpin multi-decade operations for the company at Uley.
Uley is a semi-arid rural locality at the southern tip of SA’s Eyre Peninsula overlooking the Great Australian Bight, about 273km west of Adelaide and about 22km west of the regional city of Port Lincoln.
The data obtained from the airborne survey is now subject to detailed analysis and results are slated to be revealed by the end of the month. They are likely to be accompanied by a revision to the company’s high-grade mineralisation mapping.
Is your ASX-listed company doing something interesting? Contact: office@bullsnbears.com.au