Metals Australia (ASX:MLS) said diamond drilling results from its Lac Carheil flake-graphite project in Canada defined a new graphite extension zone to the southeast of the existing mineral resource, according to a Friday Australian bourse filing.

Drilling revealed significant intersections of high-grade graphite present within the newly discovered zone, including 27 meters at 15.9% grade of graphite from 33 meters, as well as 80.5 meters at 15.5% grade of graphite from 137.5 meters.

The firm awaits results from the laboratory, which it will use to update the resource model and define a new mineral resource estimate for the project, which is expected to be published in the third quarter.

Its shares rose 6% in recent trading on Friday.