Lola now has a measured and indicated resource of 12.2 million tonnes grading 5.55 percent graphitic carbon for 676,900 tonnes of in-situ graphitic carbon.
The new resource increases the project’s in-situ graphitic carbon at a 3-percent cut-off grade by 54 percent compared to the maiden estimate, reported in December 2017.
It also boosts Lola’s measured and indicated resource by 201 percent, again compared to last year’s estimate and at a 3-percent cut-off grade. It now stands at 12.2 million tonnes grading 5.55 percent graphitic carbon for 676,900 tonnes of in-situ graphitic carbon.
Meanwhile, the property’s inferred resource clocks in at 2.06 million tonnes grading 6.07 percent graphitic carbon for 125,200 tonnes of in-situ graphitic carbon; that’s also at a cut-off grade of 3 percent.
According to the company, the sizeable rise in the asset’s measured and indicated resource came after several boreholes were completed to upgrade the first inferred resource.
Overall, Monday’s new resource is based on 12,086 meters drilled across 395 boreholes completed up to April 4 of this year. That’s higher than the original estimate, which was based on just 170 boreholes completed across 4,936 meters up to September 30 of last year.
SRG says that since the new resource’s April 4 cut-off date it has finished a further 162 diamond drill holes at Lola for around 5,686 meters, bringing the total amount of drilling completed up to 17,954 meters. Drilling will continue into the second half of this year, with 3,000 more meters planned.
Speaking last December, when the original estimate for Lola was released, SRG President and CEO Marc-Antoine Audet commented, “[t]he Met-Chem/DRA resource estimate demonstrates the exceptional potential of the Lola project and marks yet another significant milestone for the Company.”
The company also said at the time that it would “review the scope of the ongoing preliminary economic assessment (PEA) launched in September.” In March, SRG said that once 2018 drilling is complete at Lola it will have gathered enough data to complete the PEA.
Aside from Lola, SRG owns the Gogota nickel–cobalt project, where it is also hard at work. The company released a maiden resource estimate for the project earlier this month. Like Lola, Gogota is located in the Republic of Guinea.
As of 4:15 p.m. EST on Tuesday (June 19), SRG’s share price was at C$1.17, down 13.33 percent. Year-to-date it’s down 38.95 percent, but over the last 12 months SRG has gained 182.93 percent.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.