The company’s partner Paradigm Metals encountered graphitic carbon mineralization at eight shallow drill holes at Pedra Preta.
The final drill hole, CAN-PP-DDH-08-15, was drilled as a twin hole of CAN-PP-DDH-01-15 to provide material for metallurgical test work;
The company will submit samples from the hole to SGS Geosol in Belo Horizonte for metallurgical and industrial testing for identifying flake size and distribution.
Apart from the test work, Paradigm aims to undertake geophysical surveys, additional surface exploration and a detailed review of the domestic end user market for confirming demand for flake graphite and finding potential off-take and industry partners.
The Canindé graphite project includes 15,614ha of exploration licenses accessible on paved highways from the Ceará State Capital, Fortaleza.
Paradigm has signed an option agreement with Lara Exploration to earn an initial 51% stake in the project by investing $2m on exploration, paying $400,000 to Lara and completing 3,000m of drilling within three years.
After earning the initial interest, the company may earn a further 19% stake by investing an additional $2,500,000 in exploration, paying $200,000 to Lara and completing a prefeasibility study within 48 months and a feasibility study within 60 months.
The final 10% stake may be earned by paying Lara $100,000 and putting the project into commercial production within 72 months of the option date.
