Abasca expands Loki graphite resource in Saskatchewan

Abasca Resources (TSXV: ABA) has significantly expanded and upgraded the resource classification at its Loki flake graphite deposit in northern Saskatchewan. This development supports the company's preparation for a preliminary economic assessment (PEA).

The updated resource estimate includes 6.99 million tonnes of indicated resources grading 8.27% graphitic carbon, equating to 580,000 tonnes of contained graphite. Additionally, there are 15.83 million tonnes of inferred resources grading 6.93% graphitic carbon, totaling 1.1 million tonnes of graphite. This is an improvement from the initial resource estimate in April last year, which reported 11.3 million tonnes of inferred resources grading 7.65% graphitic carbon for 860,000 tonnes of graphite.

Brian McEwan, Vice-President of Exploration and Development, stated that the increased tonnage and upgraded resource category provide a stronger foundation for the ongoing PEA. Abasca Resources remains on schedule with its development plans.

Abasca's shares have increased by 2¢ Canadian this year, reaching 9.5¢ on Tuesday morning in Toronto, with a market valuation of C$13.5 million. The shares have fluctuated within a 52-week range of 4¢ to 12¢.

While the Loki project is smaller compared to other North American graphite projects, such as Nouveau Monde Graphite’s Matawinie project in Quebec and Graphite One’s Graphite Creek project in Alaska, its high-grade graphite, proximity to infrastructure, and growing indicated resources could make it a competitive player. Abasca is targeting the completion of a PEA within months and plans a prefeasibility study by late 2026.

The Loki project is envisioned as an open-pit operation located near Highway 914, approximately 570 km north of Saskatoon and 15 km south of Cameco’s Key Lake mill. The company is also exploring the nearby Thor graphite zone, which could represent an additional mineralized trend.

Recent drilling at the Thor zone reported significant graphite intersections, including 74.75 metres grading 5.13% graphitic carbon in drill hole KLS-26-112 and 114 metres at 3.91% in KLS-26-115. These results are not yet included in the updated resource estimate but indicate further exploration potential.

McEwan emphasized the importance of the Thor zone's potential, stating that demonstrating mineralization continuity provides confidence for continued exploration while prioritizing the Loki deposit's development.