Recent Development – February 3, 2012
RECENT INTERVIEW WITH PRESIDENT AND CEO OF STANDARD GRAPHITE, CHRIS BOGART
Industrial Alliance Securities (IAS) recently conducted an interview with the President and CEO of Standard Graphite, Chris Bogart to get a better idea of what lies ahead for SGH this year. On January 27, 2012, the shareholders voted in favor of a name change to Standard Graphite Corporation from Orocan Resources (TSX-V: OR). Here are the highlights from the interview:
IAS: Could you provide a brief description of each property you feel will contribute the most to SGH’s success?
SGH: WE are fortunate to have a large portfolio of projects in well-known graphite districts. The most notable property would have to be the Black Donald Mine. The historical drilling shows very encouraging intercepts. It had reported historic ore grades of up to 80% Cg.
IAS: What details could you provide us on your 2012 Exploration Program and how will you go about selecting your targets?
SGH: We are excited to review the data from our EM survey once completed and rank our targets accordingly. The next step is a combination of ground EM, mapping and trenching. We will then re-rank our projects based on all results to prioritize drill targets.
IAS: What is the timeline scheduled for this upcoming exploration program?
SGH: We will complete all the EM by the end of March, then start on the ground work with the drill testing to begin this summer.
IAS: Any thoughts on the graphite market? Any catalysts we should be aware of?
SGH: China produces around 73% of the world’s graphite. Its dominance as a producer coupled with measures introducd by the Chinese governments are creating supply concerns for the rest of the world. Supply issues are exacerbated by the lack of exploration and new mine development over decades. As for any catalysts, the next big one will be a transaction within Northern Graphite or Focus Metals in relation to an end-user agreement/ project financing by a strategic planner.
Ontario Property Locations
Source: Company Presentation
Black Donald Property – 100% Interest covering 9,000ha
§ Surrounding the past producing Black Donald Mine;
§ The last 10 years of mine life, the average reported grade was 25-30% Cg;
§ Historic drilling intercepts include:
§ Hole #8: Grade of 5.80% (Cg) over 10.7ft
§ Hole #10: Grade of 3.77% (Cg)¦nbsp; over 55.2ft
§ Hole #9: Grade of 3.33% (Cg)¦nbsp; over 17.5ft
Little Bryan Property – 100% Interest covering 3,250ha
§ Infrastructure in-place
§ Systematic channel sampling yielded the historic reported:
§ Trench #6: Grade of 4.93% (Cg) over 10m
§ Trench #5: Grade of 4.74% (Cg) over 11m
§ Trench #4: Grade of 3.72% (Cg) over 22m
Price Range for +80 mesh, 94-97% C graphite (US$/tonne)
Source: Industrial Minerals Magazine