The drilling program aims to expand the oxide resource within the Coosa project area and will include infill drilling between the main Coosa indicated resource and inferred resources along the Northern Strat section.

Additional holes are planned as step-outs by the company to the south and southwest of the Coosa resource.

The program comprises a total of 31 holes including four that will deepen existing sonic holes drilled in 2014.

Alabama Graphite president and CEO Ron Roda: "The purpose of this program is to expand the oxide portion of our resource.

"The drill results will be used to update our NI 43-101 resource estimate. This updated resource – along with the flowsheet analysis and CapEx and OpEx studies – will be the basis for an inaugural Preliminary Economic Assessment (PEA).

"The PEA will focus exclusively on the soft, oxide resource which we feel is a unique characteristic that sets us apart from other graphite resources in North America. We expect completion and delivery of the PEA in the second half of, 2015."

Meanwhile, the company commenced initial drill program at the former Fixico Mine located on the Coosa property.