Lincoln Minerals granted Mineral Lease for Kookaburra Gully graphite project

THE BOURSE WHISPERER: Lincoln Minerals (ASX: LML) has been granted a Mineral Lease by the South Australian Government for the company’s wholly-owned Kookaburra Gully graphite project on South Australia’s Eyre Peninsula.

Lincoln has been granted ML 6460, through its wholly-owned subsidiary, Australian Graphite Pty Limited, for a period of 21 years commencing on 3 June 2016.

“Kookaburra Gully is Australia’s highest grade flake graphite deposit and in the world’s Top 10 deposits based on grade,” Lincoln Minerals chairman Yubo Jin said in the company’s announcement to the Australian Securities Exchange.

“The grant of ML 6460 is the key pivot point and milestone to ensure delivery of Lincoln’s transformation now from project explorer and developer to an emerging graphite producer, in an industry at the forefront of the growing global green energy market.

“It is also the de-risking step-change awaited by our potential project financiers and off-take customers to now elevate mine construction financing and operating negotiations to a level where commercial transaction outcomes can be achieved.

“Now that the Mineral Lease has been granted, Kookaburra Gully’s Program for Environment Protection and Rehabilitation (PEPR) can be finalised.

“A geotechnical and resource diamond drilling program, soil engineering test pits and establishment of a groundwater and surface water monitoring network were completed at the proposed mine site early in May this year and further engineering studies are in progress.

“Once the PEPR is approved, Lincoln will be in a position to commit to and commence project development at Kookaburra Gully.”

The Kookaburra Gully flake graphite deposit extends to at least 125m depth, remains open at depth and along strike.

The deposit hosts total Indicated and Inferred Mineral Resources of:

2.20 million tonnes at 15.1 per cent Total Graphitic Carbon (TGC).

It also abuts the Lincoln-owned Koppio graphite mine, which as a second potential source for the Kookaburra Gully mine, adds an Inferred Mineral Resource of 1.85 million tonnes at a grade of 9.8 per cent TGC into the overall project’s mining potential.

Lincoln Minerals explained it is targeting an output of up to 40,000 tonnes per annum of high-grade graphite concentrate from Kookaburra Gully for an initial mine life of at least seven years.