Lamboo Resources ups the ante with further high graphite find in South Korea
Lamboo Resources (ASX:LMB) has encountered high grade surface rock chip sample assays
of up to 27.10% graphitic carbon (Cg) from the Taehwa Flake Graphite Project in
South Korea.
Rock chip sampling was undertaken to check and confirm the
tenor of previously identified graphite mineralization.
A total of 16
rock samples were submitted to Activation Laboratories Ltd in Canada, for assay.
Eight samples were also submitted for petrographic and SEM (scanning electron
microscope) analysis.
Other significant rock chip assays recorded from
the graphitic gneiss unit at the Taehwa graphite project included 20.10% Cg,
7.32% Cg, 5.47% Cg and 3.60% Cg.
The high grade nature of the assays has
upped the prospectivity and stakes of the Taehwa flake graphite project. In
South Korea, Lamboo's main deposits are Geumam, Taehwa &
Samcheok.
The Taehwa flake graphite deposit is situated just 80
kilometres east-northeast of Seoul in the northern part of South Korea, about 10
kilometres southeast of Chuncheon City.
South Korea - graphite growth potential
South Korea was the largest global producer of graphite during the 1950-1992
producing about 77,000tpa of flake and amorphous graphite annually.
A
well-developed downstream graphite processing industry exists in South Korea.
Demand for graphite is expected to grow in North Asia at a higher rate than any
other region over the next 5 years.
There is an opportunity to substitute
flake graphite into some synthetic graphite markets because of its cost
competitiveness. South Korea is the world’s second largest importer of synthetic
graphite, estimated to be 52,000t in 2011 and growing at a rate of 27%
pa.
A proposed drilling program will attempt to extend the existing
resources.
Lamboo Resources managing director, Richard Trevillion and
technical director Craig Rugless would be highly encouraged by the results to
date at Taehwa, where there is an Exploration Target at Taehwa of 1-3Mt at 5-10%
Cg for a potential 105,000-210,000 contained tonnes of medium-jumbo flake
graphite.
Graphite flakes observed at Taehwa ranged in size from
200-1500μm, averaging 800μm in length, classifying Taehwa as a jumbo flake
deposit.
The location of the Taehwa deposit is in a sparsely populated
mountainous region and is in an ideal location for a mining development. The
near surface, flat-lying nature of graphite mineralization is conducive to open
pit mining methods.
Analysis
Lamboo Resources has returned results that are once again significant in the context of developing a flake graphite project into production on the doorstep of the world’s fastest growing end market - South Korea.
Lamboo has only been re-listed on the ASX with a graphite exploration and development model for less than 12 months. Yet, the results from South Korea and its Australian Mcintosh project could realistically see the company into production because of the proximity to a processing facility in 2014/15.
Graphite is ranked a highly critical strategic mineral and is on the Royal Geological Society ‘Risk List.
Lamboo's current market valuation of circa $6.7m considerably undervalues the company on a 12 month view.
