Hi Ed, one of the problems we have with Seathwaite graphite is that all the high-quality graphite was worked out long ago, so it's hard to say whether it had any sort of cleavage that could be exploited when making pencils. The bits that you can find today, like the one on my desk, tend to be quite amorphous and intermixed with the host rock which does interfere with the marking properties. Ian Tyler wrote a good book about the Seathwaite mines which discussed the uses of graphite, but I don't recall any specifics about exactly how pencils were made from it other than the method you describe.
Certainly, the Seathwaite graphite was reckoned to be the world's best, being far purer than that found on the continent at the time and I don't know of any sources found in modern times that are comparable.
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