Hexagon Resources Releases Revised McIntosh Mineral Resource Estimates and Additional Updates

Hexagon Resources Limited (ASX: HXG) is an ASX listed exploration company. The company focusses upon the delivery of very high purity flake graphite for use in new technologies.

The company, today on 1 April 2019, has updated about a revised mineral resource estimate for the McIntosh flake graphite project in northern WA, which has increased contained graphite by 12% and increased material classified as Indicated by 42%.

It is notable here that, the McIntosh project is a Joint Venture between Hexagon and Mineral Resources Limited (ASX: MIN, “MinRes”), with MinRes earning a 51% interest in the project through exploration and development.

The McIntosh Flake Graphite Project combined Mineral Resource now totals 23.8 million tonnes grading 4.5 % Total Graphitic Carbon (TGC). The updated Mineral Resource estimate was undertaken by MinRes, the Manager of the MJV. This revision is based on additional drilling results from:

  • 2018 drilling comprising 10,683 metres of combined diamond core and reverse circulation drilling was undertaken by MinRes at Emperor, Wahoo and Mahi Mahi and
  • 2017 drilling involving 2,306 metres of combined diamond core and reverse circulation drilling was conducted by Hexagon at Barracuda and Longtom.

Hence, now the company has updated its Exploration Target estimate for the McIntosh Flake Graphite Project to account for recent drilling results. Drilling at Mahi Mahi intersected significant widths of mineralisation as modelled in the original Exploration Target, but the flake size endowment was found to be predominantly very fine. Taking this into account as well other controls interpreted to be related to flake size such as the localised metamorphic grade, it was decided to review all of the Exploration Targets.

This review process has generated nine targets for high-priority follow-up exploration, with an estimated 1 to 5 million tonnes of contained graphitic carbon in addition to the 1.1 million tonnes already delineated.

The company considers the US as a significant potential market for its downstream products as well as a possible site for its downstream processing facility. In the US, there is a swelling worry on the obtaining of critical minerals as exemplified by the “Presidential Executive Order on a Federal Strategy to guarantee Secure and Reliable Supplies of Critical Minerals”. Graphite is listed as a critical mineral, and this creates opportunities for US-based downstream processing of either MJV or potentially the US sourced graphite concentrates. The company is very well leveraging off the existing relationships such as its close technical partnership with US-based NAmLab2 to create a “graphite presence” in the US as a lead-in for its McIntosh sourced materials.

On the price-performance front, the stock has posted the year till date return of -3.33%. The company also has posted returns of -9.38% over the past three months. HXG’s shares last traded at a price of A$ 0.145, with a market capitalisation of ~A$ 42.31 Mn. It had a 52-week high price of $ 0.280, with an average volume of, 184,195 approximately.


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.





Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK