Lithium Energy Drills to Unite High-Grade Burke and Mt Dromedary Graphite Resources
Lithium Energy Limited has launched an extensive infill drilling campaign to merge its adjacent Burke and Mt Dromedary graphite deposits into a single high-grade resource, aiming to strengthen its position amid tightening Chinese export controls on graphite materials.
- Infill drilling program underway at Burke Graphite Project in Queensland
- Objective to consolidate Burke and Mt Dromedary deposits into combined JORC resource
- Combined inventory totals 4.42 million tonnes of high-grade natural graphite
- Average grades exceed 14% Total Graphitic Carbon, outperforming global peers
- Chinese export restrictions on graphite battery anode materials increase strategic importance
Strategic Drilling Initiative
Lithium Energy Limited (ASX – LEL) has commenced a significant infill drilling program at its Burke Graphite Project in Queensland, targeting the consolidation of two adjacent high-grade graphite deposits; Burke and Mt Dromedary; into a unified JORC-compliant mineral resource. This move aims to enhance resource confidence and support detailed metallurgical and geotechnical studies essential for future mine planning.
The program involves approximately 3,900 metres of drilling, combining 30 reverse circulation holes and 6 diamond core holes, focusing on the area bridging the two deposits. This approach reflects Lithium Energy’s commitment to optimizing resource delineation and unlocking the full potential of its Queensland graphite assets.
World-Class Graphite Inventory
Lithium Energy currently holds a combined graphite inventory of 4.42 million tonnes across three deposits, with the Burke and Mt Dromedary deposits alone accounting for 3.14 million tonnes at an impressive average grade exceeding 14% Total Graphitic Carbon (TGC). These grades are notably higher than many global graphite projects, positioning the company favorably in the competitive landscape.
The Corella deposit adds further scale with 13.5 million tonnes at 9.5% TGC, underscoring the company’s substantial resource base. The ongoing drilling program may also reveal opportunities for resource expansion, as mineralisation remains open along strike and between the two key deposits.
Geopolitical Shifts Elevate Project Importance
Recent tightening of Chinese export controls on graphite and battery anode materials (BAM) has sent ripples through global supply chains, given China’s dominant role in supplying these critical battery components. The new regulations, effective from November 2025, have intensified the urgency for alternative, stable sources of high-quality graphite-based BAM.
Lithium Energy’s development strategy for the Burke Graphite Project directly addresses this market gap. By advancing a vertically integrated BAM manufacturing business in Queensland, the company aims to produce spherical purified graphite (SPG) and coated spherical purified graphite (CSPG) – essential materials for lithium-ion battery anodes – from its high-grade graphite feedstock.
Looking Ahead
The infill drilling results will be pivotal in refining resource estimates and underpinning the feasibility of Lithium Energy’s integrated graphite-to-BAM supply chain. As the company progresses, investors will be watching closely for assay outcomes and further updates on the BAM facility development, which could position Lithium Energy as a key alternative supplier in a market facing increasing geopolitical risks.
Bottom Line?
Lithium Energy’s drilling campaign marks a critical step toward consolidating high-grade graphite resources and capitalizing on shifting global supply dynamics.
Questions in the middle?
- What will the updated combined resource estimate reveal about the scale and grade continuity between Burke and Mt Dromedary?
- How soon can Lithium Energy advance its proposed battery anode material manufacturing facility to market?
- What impact will China’s export controls have on global graphite prices and Lithium Energy’s competitive positioning?
