Hexagon Resources Limited (ASX: HXG), headquartered in Australia, is an integral player of Australia’s mining industry, as the company supplies high specification graphite materials for high-end industrial use.
On 5th April 2019, the company announced that it has revised mineral resources estimate with some additional updates for its McIntosh flake graphite project in Western Australia.
The McIntosh flake graphite project is a JV between Hexagon and Mineral Resources Limited (ASX: MIN), with Mineral Resources having 51% stake in the project through exploration and development and Hexagon having the remaining 49% interest. The McIntosh Joint Venture also aims to update the parameters such as the distribution of flake size for each of the Mineral Resources. Hexagon has been working with the assessment of flake size based on examination of drill core and a 2016 graphite concentrate sample from Emperor. An important technical and economic parameter of the project is to increase the efforts towards characterising the flake size distribution for each deposit, as more and more sample material becomes available.
Hexagon’s focus is on graphite deposits that can be easily commercialised. This led to the drilling at Mahi Mahi intersecting major widths of graphite, but due to the very fine nature of the flake, it is not included in the current Mineral Resource estimate. The company is expecting the opportunities to arise in the future with the development of the overall sales strategy. A systematic review has already been completed by the company for the exploration target estimate. This review has provided an improved short-list of targets for further exploration, although the overall estimate has reduced from the original 2017 estimate.
Revised mineral Resource Estimate for the McIntosh Joint Venture
The revised estimates are based on additional drilling results from 2017 drilling which comprised of 2,306 metres of combined reverse circulation drilling and diamond core undertaken by Hexagon at Barracuda and Longtom as well as 2018 drilling which comprised of 10,683 metres of combined diamond core and reverse circulation drilling undertaken by Mineral Resource at Wahoo, Emperor and Mahi Mahi.
Drilling and sampling has been collected from;
- Emperor drill which is approximately 40 metre by 40 metre grid drill spaced. The company estimated a total of 15.9 Mt of total resources with 12.1 Mt indicated and 3.8 Mt inferred resources with total TGC of 4.3%
- Wahoo drill which is approximately 40 metre by 20 metre grid drill spaced. The company estimated a total of 1.3 Mt of total resources with only indicated resources with total TGC of 3.97%
- Longtom drill which is approximately 25 metre by 50 metre grid drill spaced. The company estimated a total of 5.9 Mt of total resources with 5.1 Mt indicated and 0.8 Mt inferred resources with total TGC of 4.97%
- Barracuda drill which Is approximately 20 metre by 50 metre grid drill spaced. The company estimated a total of 0.7 Mt of total resources all of which are indicated resources with total TGC of 4.4%
The stock is trading flat at A$0.145 as of 5th April (AEST: 3:40 PM). In the last six months, the stock has given a return of 7.4% while YTD return stands negative at 3.3%.
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