LE Minerals Hits 88m at 17.3% Graphite Extending Burke Into Dromedary Zone
LE Minerals confirms high-grade graphite runs between Burke and Mt Dromedary
LE Minerals has reported assay results from a further 22 RC holes and 1 diamond hole confirming the continuation of graphite mineralisation between its existing Burke and Mt Dromedary Deposits in Queensland. The in-fill drilling program, completed in June 2026, comprised 47 RC holes (5,449m) and 5 diamond holes (428m), with results now received from a total of 29 RC holes and 1 diamond hole; assay results from 18 RC holes and 4 diamond holes remain pending.
These results feed directly into a combined upgraded and expanded JORC Mineral Resource estimate across the Burke/Mt Dromedary tenements. The drilling targeted the area between the two deposits to delineate continuity and upgrade confidence in the resource inventory, with the program expanded to the north to investigate thick graphitic schist intervals encountered in earlier completed holes.
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The standout intercepts driving the resource story
The latest batch of assay results continues to confirm the high-grade nature of the Burke/Mt Dromedary deposit system. Multiple intercepts exceed 30m thickness at above 15% TGC (Total Graphitic Carbon), with downhole graphitic schist thicknesses extending up to 100m.
| Hole ID | Intercept (m) | From (m) | TGC % | Notability |
|---|---|---|---|---|
| 24RCDH23 | 88m | 8m | 17.3% | Highly significant |
| 25RCDH34 | 65m | 75m | 16.3% | Highly significant |
| 24RCDH28 | 51m | 89m | 18.2% | Highly significant |
| 24RCDH18 | 43m | 44m | 16.1% | Highly significant |
| 24DDH03 | 43m | 54m | 16.6% | Highly significant (diamond) |
| 24RCDH17 | 39m | 51m | 17.8% | Highly significant |
| 24RCDH19 | 35m | 57m | 16.0% | Plus 25m @ 17.4% from 20m |
| 24RCDH21 | 21m | 1m | 19.8% | Near-surface, high-grade |
| 24RCDH14 | 22m | 6m | 19.4% | Near-surface, high-grade |
Key features of the intercepts include:
- Near-surface mineralisation: Multiple intercepts commence from shallow depths (1m, 6m, 7m, 10m), supporting potential low strip ratios in future mine planning.
- Thick, high-grade zones: Downhole graphitic schist thicknesses up to 65m confirm the substantial scale of the mineralised system.
- Consistent grades: TGC grades consistently exceed 14%, with many intercepts delivering above 16%.
The program was expanded to the north to test thick graphitic schist intervals (up to 100m downhole width) encountered in earlier holes, confirming the deposit’s extension potential.
Why high-grade graphite matters for investors
TGC (Total Graphitic Carbon) is the key grade measure for graphite deposits, representing the proportion of pure carbon in graphitic form within the rock. Natural flake graphite is classified as a critical mineral for the global energy transition, serving as the primary anode material in lithium-ion batteries for electric vehicles and energy storage systems.
Higher-grade deposits generally support better project economics. Processing costs per tonne of graphite concentrate are reduced when feed grades are high, as less ore needs to be mined and processed to produce a given quantity of product. Burke and Mt Dromedary’s average grades (consistently above 14% TGC) are significantly higher than most global peers, positioning the project favourably in a market where graphite purity and flake size are critical product specifications.
Thicker, higher-grade, near-surface intercepts strengthen the case for a larger, more confident resource estimate. The continuity of mineralisation between Burke and Mt Dromedary de-risks the project by confirming that the graphitic schist horizon extends across the combined tenure area, supporting the potential for a single, integrated mining operation.
A world-class inventory plus meaningful upside
The Graphite Projects currently hold a combined JORC resource inventory of 4.42Mt contained graphite across three deposits:
- Mt Dromedary: 12.7Mt @ 14.5% TGC for 1.83Mt contained graphite (Indicated and Inferred)
- Burke: 9.1Mt @ 14.4% TGC for 1.31Mt contained graphite (Indicated and Inferred)
- Corella: 13.5Mt @ 9.5% TGC for 1.28Mt contained graphite (Inferred)
An Exploration Target has been determined for the in-fill area between Burke and Mt Dromedary, based on drill results from the 2025/2026 program: 23.2–46.5Mt @ 12–16% TGC for 2.8–7.4Mt contained graphite.
The Exploration Target’s potential quantity and grade is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource, and it is uncertain if further exploration will result in the estimation of a Mineral Resource. This Exploration Target of 2.8–7.4Mt contained graphite is separate from the existing 3.14Mt inventory at Burke/Mt Dromedary.
The projects are located in the Cloncurry region, North Queensland, with access to sealed road, rail and Townsville port infrastructure, supporting future logistics and export pathways.
The $20 million sale and spin-out backdrop
On 26 May 2026, LE Minerals entered a share sale and purchase agreement (SPA) with M Battery Materials Limited (MBM) for the sale of the Graphite Projects. The transaction structure is as follows:
- Total consideration: $20 million, comprising $5 million cash and $15 million in MBM shares (Consideration Shares).
- MBM plans to raise a minimum $15 million under an IPO and seek ASX admission (proposed code: MBM).
MBM is led by Matt Latimore (founder of M Resources), proposed to be Non-Executive Chairman, and Gerhard Redelinghuys (former founder and Managing Director/CEO of Bowen Coking Coal, ASX:BCB), proposed to be Managing Director. MBM’s Yambungan Graphite Project sits approximately 8km from the Burke/Mt Dromedary tenements.
LE Minerals will seek shareholder approval to distribute the Consideration Shares in-specie to shareholders, subject to ASX escrow conditions and after MBM’s IPO Prospectus lodgment. The stronger the drilling results and resource estimate, the more it underpins the value of the assets being transferred to shareholders via the spin-out structure.
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What comes next
Pending milestones for the Burke/Mt Dromedary projects include:
- Assay results from the remaining 18 RC holes and 4 diamond holes are pending completion.
- A combined upgraded and expanded JORC Indicated and Inferred Mineral Resource estimate for Burke/Mt Dromedary will be delineated from the 2025/2026 drilling program.
- Diamond core from the program will support future metallurgical and battery anode material (BAM) testwork, plus geotechnical data for pit-wall and mine planning studies.
- Progression of the MBM sale transaction and proposed IPO/spin-out, subject to shareholder approvals and regulatory processes.
According to the company, these results confirm the continuation of graphite mineralisation between the Burke and Mt Dromedary Deposits.
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