The reported MLS graphite surface results are very very good. That is, compared to peers excellent initial results from the samples so the question is whether those samples transcend to the ore body itself which is what drilling is all about. In addition, and from recollection the initial MLS results from grabs/channel showed little weathering and could, note I use could, be reflective of a near surface deposit.
As you implied, the project next to us has identified a 'measured' and 'indicated' resource - for others refer to JORC code if need more information - the key there is that it is these two categories that are further evaluated in modelling to get you to 'proven' and 'probable' reserves after evaluating the economics of them which underpin mining - so in effect having a project right next door that looks good as well is a positive here IMO but nearology is one thing, having the same grades/resource is what drilling can only determine here.
Obviously the drill bit here will need to do the talking but not a bad start here through the initial samples hence my interest in MLS, so fingers crossed on the drill bit. No point speculating on viability issues until the drill bit does its work so that you can then start thinking about what is there especially the grade and the depth and the extent of the waste to ore recovery ratio which then impacts your cut off grades. All IMO
Anyone interested in the graphite should have a look at the website of the nearby payer, Focus Graphite. There is a lot of very very good information there and here I just linked what graphite is and its importance:
http://www.focusgraphite.com/technology/
The thing of importance too me is that EV vehicles requires cost effective inputs across a host of commodities - lack of cobalt/copper/lithium/graphite etc etc will impact cost and then takeup. It is not just a question of cheap lithium and all is good as some like tothink, and to that end graphite is important. TBelow are some links to battery composition - some here might be interested in the graphite required in such batteries (for pure EV vehicles and hybrid vehicles):
https://electrek.co/2016/11/01/breakdown-raw-materials-tesla-batteries-possible-bottleneck/
Pictorially, why the interest in graphite, noting the sneed for increased production- can't recall where I came across this picture either but clearly shows why there is a focus on certain minerals by ASX listed entities, including graphite:
Finally, this mine was recently commissioned in Oz but I think has run into some technical difficulties of late and may have closed again. Cut off grades etc at the bottom of this link for anyone interested:
https://en.wikipedia.org/wiki/Uley_graphite_project
The Lac Knife deposit is stated to have 15% graphitic carbon content and is one of the world's highest grade flake deposit btw so hence, fingers crossed, of what might, note I use the word might, transpire with MLS:
http://www.focusgraphite.com/lac-knife/
Finally a key to grade is look at cut off grades in a JORC to get to a measured and indicated resource (but that is only a very indicative method as ultimately you need to run technical and economic parameters to see whether mining is viable as need to move that resource to the proven and probable reserve category in the subsequent bankable study). Some recent JORCs use a Total Graphic Carbon (TGC or reported as GC) cut-off grades of less than 5% in their assessments in establishing JORC, but obviously they need further studies to show viability and quantity of ore and strip ratios is a key as well.
www.graphexmining.com.au/wp-content/uploads/2017/02/0077.pdf
Cut of grade also dependent on depth/stripping ratio as I said above as well through research. For example in this companies feasibility study back in 2014 (noting prices have increased since then implying cut off gradecould be subsequently reduced) it treated economic low grade from 2% to 9% (but as I said that would be coming down given where prices have headed.
http://www.syrahresources.com.au/feasibility-study
This one in Africa is proposing a cut off grade of 8%:
https://finfeed.com/small-caps/juniors/mustang-swells-graphite-resource-317/
But this other proposed African project has a cut off grade of 3%
https://www.mining-technology.com/projects/nachu-graphite-project/
In other word's cut off grades are dependent of width and depth of resource as well as the likely waste to ore ratio impact which transcends to cost and viability. Drilling here will determine that but going to our nearlogy website, there is positives here (i.e.e prospect) but ultimately the drill bit will decide.
For disclosue, I am learning graphite like everyone else here so the above is totally IMO IMO IMO IMO IMO
I tried to find cut off grades for existing producers with little luck by the way but found this article of interest:
https://investingnews.com/daily/res...roducing-countries-china-india-brazil-canada/
In terms of the current producing graphite mine in North America it would appear to me their cut off grade is not very high btw, but obviously it is a mine in production so has recovered the majority of its capex etc:
https://investingnews.com/company-profiles/eagle-graphite-natural-flake-production-canada/
All IMO IMO IMO IMO
