Australia-based exploration company Sayona Mining announced that it has exercised the option to acquire the Western Iron tenement (E89/4511) at the East Kimberley project in WA for $200,000.
Under the agreement, Western Iron Ore Pty Ltd is entitled to receive a 1% gross production royalty and retains a Back-in Right to the nickel, copper and iron mineralisation by the payment of $100,000 within 12 months.
Sayona recently completed a drilling program at Corkwood comprising 33 reverse circulation (RC) drill holes totalling 2,949 metres covering six prospect areas.
The company said that every hole has intersected visual flake graphite mineralisation, with significant zones of over 50 metre downhole widths in several holes, including an intercept of 64 metres.
“Additionally, some holes have intercepted multiple horizons of graphite mineralisation,” Sayona said in a statement to the ASX.
“The drilling has identified consistent, broadly tabular bodies of graphite mineralisation and the thickness of the mineralisation is better than anticipated from surface observation.”
The Corkwood area had never been explored for its graphite potential prior to this drilling program. Sayona said the program has identified graphite mineralisation over 7 kilometres within the 25 kilometre strike extent of the Corkwood geochemical and geophysical anomaly.
Sayona has dispatched samples for analysis and expects to receive the results in late January.