Metallica Minerals has started drilling at the Leo Grande graphite-gold prospect near Clermont, with plans for a five-hole program of about 300m.

Executive chairman Theo Psaros said the company’s strategy was to have a project that would not take attention away from its primary focus on advancing its Cape Flattery silica sand project, but could follow on in later years.

“Graphite is a crucial element in the electrification of Australia, and it is a major component in battery manufacture and, like silica sand, it is denoted as a critical mineral by the Queensland Government,” he said.

“This initial drilling program will determine if there is the potential to define a significant graphite deposit on our existing tenement.”

The Clermont project is held as a joint venture between two major silica sand players in Queensland – Metallica and Diatreme Resources, through subsidiaries.

The project area covers numerous prospects including the Rosevale project and the historical Peak Downs copper mine.

In October, Metallica elected to earn an additional 24 per cent in the Clermont project, taking its stake to 75 per cent, by spending an additional $1 million under the terms of the JV agreement.

Metallica said a data review of drill logs for 54 reverse circulation holes and one diamond hole drilled at the Leo Grande prospect in 1989 and 1990 highlighted the presence of graphite in all of the holes drilled.

The amount of graphite in each hole was never quantified with the logs referring only to low, moderate, strong to very strong graphite content, with the graphite associated with a black mylonite or a quartz-mica schist.