Renascor Resources picks up South Australia graphite project

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THE DRILL SERGEANT: Renascor Resources (ASX: RNU) has entered into a binding agreement to secure an option over the Arno graphite project, an advanced graphite project in South Australia’s Eyre Peninsula.

Renascor believes the project offers large tonnage, high quality graphite potential.

High-grade, coarse-flake graphite intersections have been encountered in eight holes drilled to date within the targeted prospects, with results including:

Siv004
19 metres at 11.14 per cent total graphitic carbon (TGC), within 37m at 7.24 per cent TGC (from 37m); and

Siv005
20m at 10.78 per cent TGC within 36m at 8.48 per cent TGC (from 36m).

Renascor said all of the eight drill holes demonstrated a strong correlation with conductivity zones outlined in airborne electromagnetic (EM) data, which extend over a strike-length of five kilometres.

The EM-defined target zone at the advanced Siviour prospect outlines a flat-lying, shallow conductive zone and extends at least 1,200m west of the existing high-grade drill section.

Renascor considers this to suggest potential exists to define a large-tonnage graphite resource from next-stage drilling at Siviour.

Preliminary metallurgical test work already carried out indicates a large proportion of flake-size graphite, with 93 per cent TGC concentrates produced using simple flotation and gravity methods.

Renascor has commenced predrilling exploration activities and expects to commence drilling at the advanced Siviour prospect later this month.

“This Arno graphite project offers outstanding potential for Renascor to quickly define a significant graphite resource within the proven graphite producing-region of South Australia’s Eyre Peninsula,” Renascor Resources managing director David Christensen said in the company’s announcement to the Australian Securities Exchange.

“Work to date has already established the widespread presence of high-grade, coarse-flake graphite, and the upcoming drill programs provide an immediate opportunity to locate a large and shallow, high quality ore body.

“The option to acquire the Arno project continues Renascor’s strategy of offering low-cost, near-term discovery opportunities and adds to the potential offered by Renascor’s neighbouring Eastern Eyre copper project and Munglinup graphite/nickel-sulphide project in Western Australia.”

Email: info@renascor.com.au

Website: www.renascor.com.au