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Lithex Resources' Graphite Foray Paying Off, Delivers Up To 23% Grade

Lithex Resources' (ASX: LTX) recent geological mapping and sampling at its Plumbago Graphite Project in New South Wales has produced high grades of up to 23% total graphitic carbon (NYSEMKT:TGC).

The project contains 10 historically recorded occurrences of graphite, with three of these having produced graphite back in the early 1900s.

Seven samples taken from these occurrences assayed between 1.4% and 23% TGC, with an average of 10.6% TGC.

The graphite at the Plumbago Project is hosted within the Permian age Gilgurry Mudstones, which have been altered via metamorphic processes associated with the intrusion of the adjacent granitic rocks.

Importantly, over 6 kilometres strike of the host rocks are present within the project, with the 10 identified graphite occurrences stretched across a similar distance.

Numerous historical graphite occurrences that are noted in the New South Wales Government database and geological maps are still to be investigated.

The graphite sampled was field identified to be a mixture of ultrafine flake (amorphous) and coarser flake sizes.

Metallurgical testing will be conducted on samples as the project progresses to accurately define the physical characteristics of the graphite.

Based on these encouraging initial results, planning has begun for an airborne electromagnetic survey, which will assist in identifying targets for further sampling, geological mapping and potentially drilling.

Graphite foray

Lithex entered the graphite hunt late last year, adding 11 Australian graphite tenements to its portfolio via the acquisition of Far North Minerals.

The graphite tenement package covers 533 square kilometres across four Australian states.

Three tenements make up the Munglinup Project in Western Australia, one comprises the Eyre Point Project in South Australia, five cover various historical showings located in New South Wales, one covers the Furniss East Project in Western Australia, and one covers the Emu Plain Project located in Queensland.

The projects are located in the main known graphite provinces in Australia, including the Munglinup Region of Western Australia and the Eyre Peninsula of South Australia.

The tenements are considered highly prospective for occurrences of graphite.

No previous recent or systematic exploration program has been carried out for the exploration of graphite on any of the acquired tenements.

New South Wales projects

There are 14 recorded occurrences of graphite in New South Wales, all of which are in the area covered by the five tenements acquired by Lithex, covering a combined area of 228 square kilometres.

They occur in two main areas in the New England Orogen - Undercliff Falls, north of Tenterfield, and Walcha, south of Armidale.

The Plumbago and Winterbourne occurrences are considered the most interesting projects. The Plumbago occurrence is located in the Undercliff Falls area and hosts the Plumbago deposit, where a total of 3,000 tonnes has been mined in the past.

In the Undercliff Falls area there are nine separate graphite localities including the George Creek, Falls Creek, Nicklaus, Half Moon, Circular Quay Gully, and Hutt Spur occurrences.

The Winterbourne occurrence contains the formerly operating Winterbourne graphite mine and is developed in a north-trending micropegmatite dyke that intrudes granitic stocks of the Cheyenne Complex, Hillgrove Supersuite.

The dyke is 2 to 30 metres wide and is exposed over a distance of about 250 metres. It contains abundant segregations of fine-grained graphitic material.

Analysis

Although early days, this is a good start for Lithex at the newly acquired graphite tenements.

Grades of up to 23% TGC, and an average of 10.6% TGC, demonstrate the potential for high grade graphite in the several historically recorded occurrences within the Plumbago Project.

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