Flinders Resources’ share price ended Wednesday up 16.36 percent. The company has expanded flake graphite mineral resources at its Sweden-based Woxna graphite project by nearly three times.
Flinders Resources‘ (TSXV:FDR) share price ended Wednesday up 16.36 percent, at $0.32, on news that the company has expanded the mineral resource for its Sweden-based Woxna graphite project by nearly three times.
Specifically, measured and indicated resources at Woxna now sit at 7.7 million tonnes at 9.3 percent Cg. That’s up from the previous 2.8 million tonnes at 10.7 percent Cg.
In terms of how those numbers break down, Flinders states that the Gropabo mining lease holds an indicated resource of 1.5 million tonnes at 8.8 percent Cg, while the Mattsmyra mining lease has an indicated resource of 3.4 million tonnes at 8.4 percent Cg. Finally, the Kringelgruvan mining lease hosts a measured resource of 1 million tonnes grading 10.7 percent Cg and an indicated resource of 1.8 million tonnes grading 9.3 percent Cg.
In addition, Gropabo has an inferred resource of 0.7 million tonnes grading 8.7 percent Cg, while Mattsmyra’s comes to 1.2 million tonnes grading 8.4 percent Cg. In total that comes to an inferred resource of 1.9 million tonnes grading 8.5 percent Cg.
Part of the reason for the overall increase is that the Gropabo and Mattsmyra mining leases, which like Kringelgruvan are wholly owned by Flinders, were not included in the previous Woxna mineral resource. Respectively, Gropabo and Mattsmyra lie 18 and 22 kilometers from the Woxna mine and processing plant.
For Blair Way, president and CEO of Flinders, that proximity is an important consideration. Commenting in Wednesday’s release, he said, “[e]xpanding the resource base so close to our fully operational processing plant at Woxna, will provide more flexibility and confidence when planning for future expansions from the current 13,000t/yr graphite production capacity.” He added, “[t]his is a significant milestone for our business in Sweden.”
Also significant is the fact that mineralization at Mattsmyra remains open along strike and at depth, with geophysical data suggesting “potential for significant expansion.” Mineralization at Gropabo also remains open along strike and at depth.
In terms of what’s next for Flinders, Way recently explained to Resource Investing News that one of the company’s current goals is to expand its customer base in Europe. The company restarted production at the past-producing Woxna mine just last year, and currently is the only TSXV-listed company producing graphite. As Flinders grows its influence, the increased resource will no doubt be a boon.
As mentioned, Flinders’ share price took a big leap upward on Wednesday’s news. Year-to-date it’s up an impressive 40.11 percent.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Flinders Resources is a client of the Investing News Network. This article is not paid-for content.