Abasca completes drilling work at Key Lake South
Executive Summary
- Abasca Resources completed geohydrological, geotechnical and diamond drilling at the Loki flake graphite deposit (235 m of sonic holes and 868 m of diamond holes) as part of its 2025 summer program.
- The company announced a non‑brokered private placement of up to $2.5 million for the issuance of 15,625,000 flow‑through common shares at C$0.16 per share, with optional finder’s warrants and a four‑month hold period.
- Proceeds from the financing will fund further infill drilling, environmental baseline studies, metallurgical testing and other exploration activities to upgrade the mineral resource estimate.
Key Details
- Drilling Program:
- Six sonic drill holes – total depth = 235 m.
- Four diamond drill holes – total depth = 868 m, targeting the Loki flake graphite deposit.
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Data will support open‑pit design, tailings planning, EIA and future resource modelling.
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Resource Context:
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Current inferred resource for Loki: 11.31 Mt at 7.65 % Cg (graphite).
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Financing Terms:
- Up to $2.5 M gross proceeds.
- 15,625,000 common shares to be issued as flow‑through (FT) shares at C$0.16 per FT share.
- Optional finder’s cash fees up to 6 % of gross proceeds and finder’s warrants for up to 6 % of the number of FT shares issued.
- Finder’s warrant exercise price: C$0.20 per common share; term: two years.
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Hold period on all securities: four months and one day from closing date.
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Use of Proceeds:
- Exploration activities at Key Lake South (KLS), specifically summer infill drilling on the Loki deposit.
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Environmental baseline study continuation, metallurgical testing, and other tasks to support a resource upgrade and development planning.
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Regulatory/Compliance:
- Private placement subject to exchange approval.
- Technical information reviewed and approved by Brian McEwan, P.Geo., VP Exploration (NI 43‑101 qualified person).
Notable Quotes
“Abasca is delighted with the progress of the environmental baseline study and geotechnical data collection… The Loki deposit continues to provide consistent results… These intersections of strong graphite mineralization confirm our model and provide confidence in continuing to develop this critical mineral resource.” – Dawn Zhou, President & CEO
“These intersections of strong graphite mineralization confirm our model and provide confidence in continuing to develop this critical mineral resource.” – Brian McEwan, Vice‑President Exploration