LE Minerals has received further assay results from its Burke-Mt Dromedary drilling program, confirming thick, high-grade graphite mineralisation between deposits and supporting an expanded resource estimate. The company is advancing a $20 million sale of these assets to M Battery Materials, which plans an ASX IPO.
- In-fill drilling confirms continuous high-grade graphite mineralisation
- Significant thick graphite intercepts up to 88m at over 17% TGC
- Exploration Target of 2.8–7.4 million tonnes of contained graphite identified
- Sale agreement with M Battery Materials for $20 million progressing
- Combined Burke and Mt Dromedary resources hold over 3.1 million tonnes graphite
Strong Assay Results Validate Graphite Continuity Between Deposits
LE Minerals Limited (ASX:LEL) has bolstered its position in the high-grade graphite sector with assay results from an extensive in-fill drilling program at its Burke and Mt Dromedary Graphite Projects in Queensland. The latest data, covering 22 additional Reverse Circulation (RC) holes and one diamond hole, confirm thick and consistent graphite mineralisation bridging the gap between the two deposits.
Noteworthy intercepts include an 88-metre interval grading 17.3% Total Graphitic Carbon (TGC) from 8 metres in hole 24RCDH23, and several other substantial zones exceeding 20 metres at grades above 16% TGC. These results affirm the potential to delineate a combined, upgraded JORC Mineral Resource across the tenements, enhancing the project's scale and confidence.
Resource Expansion Supported by Exploration Target
The drilling program, completed in June 2026, comprised 47 RC holes totaling 5,449 metres and five diamond holes for 428 metres, with a northern extension to investigate thick graphitic schist intervals previously identified. LE Minerals has now received assay results from 29 RC holes and one diamond hole, with further assays pending.
Based on these findings, the company has defined an Exploration Target ranging from 23.2 to 46.5 million tonnes at 12–16% TGC, representing 2.8 to 7.4 million tonnes of contained graphite. This target is separate from the existing high-grade inventory of 3.14 million tonnes of contained graphite across Burke and Mt Dromedary.
Substantial Graphite Inventory and Strategic Location
LE Minerals' graphite portfolio in the Cloncurry region boasts a world-class, high-grade inventory including:
- Mt Dromedary: 12.7 million tonnes at 14.5% TGC (1.83 million tonnes contained graphite)
- Burke: 9.1 million tonnes at 14.4% TGC (1.31 million tonnes contained graphite)
- Corella: 13.5 million tonnes at 9.5% TGC (1.28 million tonnes contained graphite)
The projects benefit from proximity to established transport infrastructure, including road access, airports at Cloncurry and Mount Isa, and a port at Townsville, facilitating potential future development.
$20 Million Sale Agreement Advances with Battery Materials Specialist
In a significant strategic move, LE Minerals entered into a share sale and purchase agreement with M Battery Materials Limited (MBM) for the graphite projects, valued at $20 million, comprising $5 million cash and $15 million in MBM shares. MBM is preparing a $15 million Initial Public Offering (IPO) to list on the ASX as a specialist battery materials company focused on critical minerals for the energy transition.
MBM's portfolio includes the Yambungan Graphite Project, located just 8 kilometres from LE Minerals' Burke/Mt Dromedary assets. The transaction includes plans for an in-specie distribution of MBM shares to LE Minerals shareholders, subject to ASX escrow conditions and shareholder approval.
The deal positions both companies to capitalize on growing demand for battery-grade graphite, with LE Minerals focusing on its lithium projects, including recent expansions in Utah.
Bottom Line?
The latest drilling results reinforce the high-grade graphite potential at Burke-Mt Dromedary, while the $20 million sale to MBM signals a strategic pivot for LE Minerals amid evolving battery materials demand.
Questions in the middle?
- How will the pending assay results influence the final upgraded JORC Mineral Resource estimate?
- What impact will ASX escrow conditions have on the timing and value of the in-specie distribution of MBM shares?
- How might MBM leverage the proximity of its Yambungan project to accelerate development and market positioning?