PERTH (miningweekly.com) – ASX-listed explorer Lincoln Minerals has declared a maiden Joint Ore Reserves Committee-compliant resource of 2.25-million tons, grading 15% graphitic carbon at its Kookaburra Gully project, in South Australia.

The project was now estimated to host some 338 000 t of contained graphite.

“Kookaburra Gully is emerging as a world-class flake graphite deposit capable of delivering near-term production at low cost, and there is significant further potential as we continue to explore major consistent electromagnetic anomalies immediately to the south of this maiden graphite resource,” said Lincoln MD John Parker on Tuesday.

Parker noted that less than 20% of the Kookaburra Gully project area had been drill tested to date, with further drilling expected to take place in mid-2013.

An exploration target of between 14.2-million tons and 42.6-million tons had previously been estimated for the Kookaburra Gully project.

“The maiden mineral resource at Kookaburra Gully reinforces Lincoln’s confidence in being able to quickly progress the company’s graphite resources on southern Eyre Peninsula into a high-quality, long-life graphite mining and processing operation.”

He added that drilling at the project, and defining over two-million tons of mineralisation, at 15% graphite in this timeframe, had been a fantastic result for the company.

Meanwhile, Lincoln has completed preliminary metallurgical studies and a scoping study for the Kookaburra Gully project, which indicated that the project would be globally competitive.

A pilot-scale operation had been planned for the end of 2013, subject to finance and approvals, with full mining, production and processing planned for 2014.

“The delineation of a world-class flake graphite resource at Kookaburra Gully underpins a mining operation of a minimum of 200 000 t/y for at least ten years. This means sustained revenues and returns for the company,” Parker said.