Abasca Resources has unveiled the inaugural mineral resource estimate (MRE) for its Loki Flake graphite deposit at its Key Lake South (KLS) project near regional infrastructure which services Cameco's Key Lake operation. The project is located on a 23,977-ha exploration project located in the Athabasca Basin region in northern Saskatchewan, approximately 15 km south of the former Key Lake mine and current Key Lake mill.
The graphite MRE denotes a major milestone for the project and positions Abasca to play a significant role in contributing to North America's secure supply chain of graphite.
The MRE has the following highlights: Total inferred resource: 11.31 Mt of Graphite at an average grade of 7.65 % Cg, contained graphite: 0.86 Mt, and a cut-off grade: 2.78 % Cg.
The MRE, with an effective date of April 10, 2025, was completed by Understood Mineral Resources in accordance with NI-43-101 guidelines and is primarily based on the results from the 2024 summer drill program, which included 20 holes totaling 5,499 metres, as well as re-sampled holes from 2016 drill cores.
The 2024 drill program was designed to support an inferred resource and provide a foundation to further expand and develop the project in subsequent campaigns, including the company's current 2025 winter drill program. The Loki deposit remains open at depth and along strike.
Graphite's demand has been increasing in recent years from the electric vehicle and energy storage industries in addition to the continued needs arising from graphite's traditional industrial applications. In 2024, North America's average import price was over US$1,200/ton. Graphite is one of the 31 critical minerals designated by Canada's federal government and it is one of the six minerals in the Canadian essential supply chain.
Dawn Zhou, president and CEO of Abasca Resources, said: "The independent mineral resource estimate of the Loki deposit is very encouraging for Abasca to carry out further drilling for resource expansion and upgrading. Achieving this important milestone has greatly de-risked the Loki deposit for development and creation of shareholder value.”
The Loki deposit is hosted in the metapelitic rocks of the Wollaston Domain along a northwest-trending fault zone with graphite mineralization extending from the overburden-basement contact down-dip toward the southwest.
Brian McEwan, vice-president of exploration, stated, "This initial resource estimate provides Abasca a great foundation to continue advancing the Loki Flake graphite deposit. The independent resource estimate model confirms our own internal estimate and highlights the strong continuity of the mineralization intersected in each hole. We are looking forward to the continued delineation of the deposit and moving the project into the next stages."
For more information on the Loki Flake graphite deposit and an overview of the Key Lake South project, please visit the company's website at https://www.Abasca.ca.
May 2, 2025
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