Lithium Energy has released an exploration target totaling 2.8-7.4 million tonnes of contained graphite for an area between its Burke and Mount Dromedary deposits.

Lithium Energy is nearing completion of an in-fill resource development drilling program in the area, with a total of 44 RC holes and five diamond holes drilled.

The company plans to complete a further four RC holes in June.

The exploration target announced today is separate from the existing high-grade graphite inventory of 3.14Mt delineated from the Burke and Mount Dromedary tenements.

The company intends to delineate a combined upgraded and expanded JORC mineral resource for the Burke/Mount Dromedary deposits after the completion of the current in-fill resource development drilling program.

Lithium Energy announced yesterday that it is selling its Burke, Mount Dromedary and Corella graphite projects to the newly established M Battery Materials for $20 million.

The Matt Latimore and Gerhard Redelinghuys-led battery materials play will pay $5 million cash and $15 million in shares under the deal.