Castle fires up graphite drill run in Ghana

Castle Minerals’ (ASX:CDT) 4,800m RC drill run has officially launched at the company’s Kambale graphite project in Ghana.

Castle is to test recently identified new conductivity zones thought to host graphite mineralisation, and extensions of known mineralised deposits. 

The 46-hole campaign will include 500m of diamond core drilling to go off for metallurgical testing. 

(Source: Castle) A map locating new EM targets at the Kambale project

Castle wants a JORC compliant resource 

One objective for the Kambale drilling program is to update JORC Inferred Resources which currently sit at 14.4 million tonnes at 7.2% graphitic carbon. 

That estimate, however, was created a decade ago and is not compliant with the JORC Code 2012.

Castle notes there is currently insufficient information to re-estimate the Kambale project. 

The company adds it is possible following a re-estimation, the resource may materially reduce.

Metallurgical tests for concentrate 

Castle believes it is well placed to expand the Kambale project as evidence suggests mineralised zones are larger than previously thought. 

The new target areas were discovered in a recent electromagnetic survey.

The 500m core sample to be used for testing will allow Castle to analyse and characterise graphite concentrate product. 

The diamond drill sample will target unoxidised geological material. 

Forecast uptick in Graphite demand of interest 

Castle notes the graphite market is forecast to experience escalating demand. 

This uptick in demand is believed to coincide with a supply deficit for graphite concentrates, due in part to the upscale of EV battery manufacturing. 

The graphite market is known for a level of opacity and reliable real-time data on pricing is difficult to acquire. 

Castle notes many factors influence the end price of a graphite product, including flake size, grade and purity, and the shape of final products. 

EV batteries require spherical graphite, yielded in an intensive downstream process.

Ghanaian farm out agreement canned 

Castle Minerals also notes a farm-out agreement of two Ghanaian licences to local company Iguana Resources Limited has been terminated before execution.

Castle had been looking for a partner to develop its Degbiwu licence, hosting two gold prospects. 

Castle subsidiary Carlie Mining retains 100% ownership. 

Castle Minerals is not spared from market chaos today