Quantum Graphite - New Graphite Discovery in Exploration Licence 6224
QGL (QGL) Share Update July 2024 Tuesday 23rd
Quantum Graphite Announces Major Graphite Discovery
Quantum Graphite Limited (QGL) has announced a groundbreaking discovery of a large graphite mineralised zone within its Exploration Licence 6224, located in South Australia. This new find is expected to significantly enhance the company's resource base and exploration potential.
Instant Summary:
- Discovery of a large graphite mineralised zone in Exploration Licence 6224.
- Zone extends for at least 2.5km in a North-South direction.
- Located beyond the existing Salt Lake mineralised region.
- Part of the Uley 2 and Uley 3 Resource Extension Program.
- Completion of a tenements wide helicopter-borne geophysical survey.
New Graphite Discovery
Quantum Graphite Limited (QGL) has made a significant discovery of a large graphite mineralised zone within Exploration Licence 6224 (EL), located in South Australia. This new zone extends in a North-South direction for at least 2.5 kilometers and is situated beyond the existing Salt Lake mineralised region.
This discovery is part of the company's ongoing exploration efforts under the Uley 2 and Uley 3 Resource Extension Program. The program aims to expand the resource base of the century-old Uley mine, one of the largest high-grade natural flake graphite deposits in the world.
Survey and Analysis
On 2 April 2024, Quantum Graphite announced the completion of a tenements wide helicopter-borne geophysical survey. This survey was crucial in identifying the new graphite mineralised zone. The company had initially planned to complete the analysis of the survey data by the end of May 2024. However, due to the additional new mineralisation demonstrated from the geophysical data, the analysis is now expected to be finalised by the end of July 2024.
The company's technical team is diligently working on revising the high-grade mineralisation mapping, which will provide a more comprehensive understanding of the new discovery and its potential impact on the company's resource base.
Company's Perspective
Managing Director Sal Catalano commented on the discovery, stating, 'Our Resource Extension Plan resulted from a first principles review of exploration data and a determination of the additional data needed to develop a long-term exploration plan. This review and the determination of the data gaps was exhaustive and, at times, required us to critically re-examine key assumptions.'
Catalano further added, 'We are now seeing the excellent results of the technical team's diligence and patience. The Plan's dual strategy – the Uley Near Mine resource extension and the broader District Exploration plan – will realise a prospect pipeline that will underpin substantial increases in the Uley resource base in the short term and new resources across the EL over the next 2 years.'
The discovery of a new graphite mineralised zone is a significant milestone for Quantum Graphite. This find is expected to enhance the company's resource base and exploration potential, which could positively impact the company's stock price. Investors may view this discovery as a sign of the company's growth prospects and long-term viability.
The delay in finalising the analysis of the geophysical survey data may cause some short-term uncertainty. However, the overall positive outlook from the new discovery is likely to outweigh these concerns.
Investor Reaction:
Analysts and investors have generally reacted positively to the news of the new discovery. Many see it as a strong indicator of Quantum Graphite's potential for growth and resource expansion. Some investors have expressed excitement about the long-term prospects of the company's exploration efforts.
Conclusion:
Quantum Graphite's announcement of a new graphite mineralised zone within Exploration Licence 6224 marks a significant step forward for the company. Investors should keep an eye on the final analysis of the geophysical survey data, expected by the end of July 2024, and consider the potential long-term benefits of this discovery for their portfolios.