The Masugsbyn regional project covers 52km2 and hosts at least three known high-grade graphite deposits across 5 claim areas, including: Nybrannan, Suinavaara and Valivuoma.

The projects were partially historically held by Talga Group (ASX:TLG, mcap: A$558M) and contained a total exploration target of 7.8 – 16.1 Mt @ 15-30% Cg.

The Nybrannan project was mined down to a depth of 3m in the early 1900’s over an area of 25m x 7m and reportedly produced grades of up to 40% Cg. Trenching yielded grades of up to 14m @ 33.3% Cg.

The Suinavaara deposit includes a drill intercept of 19.26m @ 26.4% Cg from 50.68m downhole within a 900m EM anomaly.

Valivuoma drilling intercepted graphite bearing schist within an identified electrical conductor however no assays are available.

The area is well serviced with infrastructure and is near LKAB’s Kiruna operations, as well as Talga’s approved mining and refining operations.

The average depth of all holes drilled, ranged from 150M to 550M. This is relatively shallow in comparison to other on shore CBM gas fields globally. Coal seams identified are between 1M and 4M with cumulative coal measures of up to 25M.

Initially, 20 exploration core holes were drilled. This culminated in significant gas shows in both downhole logging and laboratory canister desorption. Of the 7 permeability pilot test wells drilled using a simple barefoot completion method, all wells spontaneously flowed gas to the wellhead.

Through further exploration and the continued successful use of an aeromagnetic survey, the focus will be to expand the gas field and to quantify the resource. As further exploration is carried out on ER 38, this will test deeper formations and probable higher gas pressures than encountered in ER56 on drilling of more permeability test wells.