Lithium Energy (ASX:LEL) has completed Phase 1 of its resource drilling program at the high-grade Burke Graphite Project in Queensland, focusing on previously untested areas between the Burke and newly acquired Mt Dromedary deposits.
The Phase 1 program comprised seven RC holes totaling 744m and two diamond holes totaling 151m.
Graphitic schist was encountered in all holes, with vertical thicknesses ranging from 8m to 74m. Samples from the initial seven RC holes have been sent for assay, with results expected in January.
Phase 2 drilling is scheduled to commence in early January 2026 and will include 23 RC holes (approximately 2,370m) and four diamond holes (approximately 240m), continuing to target the gap between the Burke and Mt Dromedary deposits.
Lithium Energy holds a combined high-grade graphite inventory of 4.42 million tonnes across three Queensland deposits, including Burke (9.1 Mt at 14.4% TGC), Mt Dromedary (12.7 Mt at 14.5% TGC), and Corella (13.5 Mt at 9.5% TGC).
The Burke and Mt Dromedary Deposits' +14% TGC grades are higher than most global peers, with potential for further resource expansion.
The timing of Lithium Energy's development aligns with China’s recent tightening of export controls on graphite and battery anode materials, which could disrupt global supply chains.
The company is evaluating a vertically integrated BAM business in Queensland, producing high-purity graphite flake concentrate for lithium-ion batteries, with potential to supply spherical purified graphite and coated SPG for the growing global battery market.