Abasca expands Loki graphite resource in Saskatchewan

Abasca Resources (TSXV: ABA) has nearly doubled the resource while upgrading the category at its Loki flake graphite deposit in northern Saskatchewan as it prepares a preliminary economic assessment (PEA).

The update outlines 6.99 million indicated tonnes grading 8.27% graphitic carbon for 580,000 tonnes contained metal and 15.83 million inferred tonnes grading 6.93% graphitic carbon for 1.1 million tonnes graphite, the company said Tuesday. That compares with the initial resource in April last year of 11.3 million inferred tonnes grading 7.65% graphitic carbon for 860,000 tonnes of the battery metal.

“We have increased the tonnage at the Loki deposit and converted the majority of our initial inferred resource to indicated, providing the ongoing PEA a substantially stronger foundation,” Vice-President of Exploration and Development Brian McEwan said in a release. “Our fast-track roadmap to production remains firmly on schedule.”

Shares in Abasca Resources have gained 2¢ this year to 9.5¢ Tuesday morning in Toronto, valuing the company at $13.5 million. They’ve traded in a 52-week range of 4¢ to 12¢.

Modest size

Loki remains modest in size compared with more advanced North American graphite projects such as Nouveau Monde Graphite’s (NYSE: NMG, TSX: NOU) Matawinie project in Quebec, which hosts 130.3 million tonnes in measured and indicated resources, and Graphite One’s (TSXV: GPH; OTCQX: GPHOF) Graphite Creek project in Alaska, which contains 71.2 million tonnes of proven and probable reserves.

But Loki’s relatively high grade, proximity to existing infrastructure and growing indicated resource could help distinguish it as Abasca targets completing a PEA within months. The company is pursuing an aggressive development schedule with a prefeasibility study in late 2026, while environmental baseline work and other technical studies continue in parallel.

The company envisions the project as an open pit near Highway 914, about 570 km north of Saskatoon and 15 km south of Cameco’s (TSX: CCO; NYSE: CCJ) Key Lake mill.

Thor drilling

The company also reported drilling at the nearby Thor graphite zone, which lies parallel to the Loki deposit and could represent a second mineralized trend.

Highlights included 74.75 metres grading 5.13% graphitic carbon from 117 metres depth in drill hole KLS-26-112, 89 metres at 4.28% from 99 metres in hole KLS-26-113, 101.8 metres at 4.31% from 66.7 metres in hole KLS-26-114 and 114 metres at 3.91% from 139 metres in KLS-26-115.

The results are not included in the updated resource estimate but point to additional exploration potential, the company said.

“Demonstrating the up-dip continuity of the mineralization we see in KLS-25-072 provides us confidence to continue our exploration along-strike while we prioritize work on fast-tracking the Loki deposit,” McEwan said. “The prospects of the Thor zone represent another opportunity for Abasca.”