This evening I’ll be interviewing Flinders Resources Ltd. (TSXV: FDR) and the timing couldn’t be better. Today news crossing the wires was about results from their first 10 holes of a 37 hole drill program at the Kringel deposit in Sweden. Results from two different drill holes include 13.6 meters at 11.8% graphitic carbon and 18.3 meters at 7.6% graphitic carbon.
The aim of the drill program is to reclassify historic graphite resources estimates to current NI 43-101 standards and to determine the presence of extensions of the deposit below 50 meters and along strike. The Kringel deposit was subject to substantial drilling by its previous owners and has a historic resource estimate of 6.9 million tonnes containing 8.8% graphite in four separate deposits. Historic resources at the Kringel mine site are 1.3 million tonnes at 11.3% graphite.
Yesterday, Galaxy Capital Corp. (TSXV: GXY) announced it had acquired 100% interest in the Laurier Graphite Property located in the highly prospective Central Metasedimentary Belt of the Grenville geological province in Ontario. Work completed to date on the property describes a north-south trending graphitic schist units ranging from 25 meters to 250 meters in width with 1.0 millimeter graphite flake disseminated throughout. In addition, a vein of massive flake graphite ranging from 1-2 meters wide has been identified. Galaxy Capital is planning a field program, consisting of ground geophysics, prospecting, mapping and sampling for June 2012.
Galaxy Capital also provided an update on its other graphite properties. At the Sun Graphite Property field work is expected to begin in late May and will consist of mapping, prospecting and sampling, to define drill targets. A 3,000 metre summer diamond drill program will also follow. At the Buckingham graphite property field work will also commence in late May with a helicopter-borne electromagnetic survey.
In other graphite market news, yesterday Syrah Resources Ltd. (ASX: SYR) closed 94.65% higher at AUD$1.82 based on preliminary results of a single drill hole. Specifically, results indicate that more than 287 meters of graphite was intersected at the Balama project in Mozambique. This drill hole has not been fully assayed and has not reached the bottom of the graphite deposit. Syrah’s management suggests that the deposit extends further underground though graphite industry followers and investors will have to wait four to six weeks more for full assay results. The formalization of a resource to JORC rules is anticipated later in 2012, much earlier that their previously announced target of March 2013.
What makes this story exciting for investors is that Syrah’s share price soared, more than doubling in one day despite weak boarder market performance. This afternoon, Syrah Resources shares are trading even higher at AUD$1.98. Syrah Resources has been selling off its non-strategic assets to better focus on graphite projects in Africa with a specific focus on the Balama project. Their other assets include 25 exploration licenses in Saudi Arabia.
Disclaimer: Flinders Resources Ltd. and Galaxy Capital Corp. are GraphiteBlog sponsors.Prices taken from Google Finance on 2012-05-23 at 5pm EST and 2012-05-24 at 12:15pm EST.