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AGORACOM Small Cap TV “Best Of The Best” Stock Picks Of The Week Ended – October 10, 2014

Posted by AGORACOM-JC at 4:35 PM on Friday, October 10th, 2014

AGORACOM Founder, George Tsiolis and Chief Market Commentator, Allan Barry Go Via Satellite to discuss and debate Allan’s Best picks this week. Companies Included on this week’s show are:

WHY IS JULY 11, 2013 SO IMPORTANT?

Allan and George have already put their viewers well ahead of the game by starting their weekly broadcasts on July 11, 2013 on the thesis that great small-cap companies were so oversold they could not be ignored. One look at the TSX Venture Index proves they hit the nail on the head … but that doesn’t come close to telling the whole story with most of their picks far outperforming an index bloated with zombie companies.

Find out which companies Allan and George like this week by watching the video below!

Want to catch up on previous shows?

Weekly “Best Of The Best” Summarizing The Best Picks From Our Daily Shows. Posted Every Friday Afternoon Watch Here

THIS WEEK’S SHOW SPONSORED BY THE FOLLOWING GREAT SMALL CAP COMPANY:


Focus Graphite Reports Lac Knife Pilot Flotation Plant Tests Yield Large Flake Graphite Concentrate (+ 80 mesh) Grading 98.3% Carbon

Posted by AGORACOM-JC at 9:11 AM on Wednesday, August 21st, 2013

OTTAWA, ONTARIO–(Aug. 21, 2013) - Focus Graphite Inc. (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) (“Focus” or the “Company”) is very pleased to report pilot plant test results from its flagship Lac Knife high grade flake graphite project located in the Grenville Geological Province of northeastern Québec. This work was performed as part of the ongoing Lac Knife concentrator flowsheet design process. The graphite concentrates generated from the pilot flotation plant will be subjected to further purification tests as part of ongoing metallurgical studies.

Highlights:

  • The average grade of the coarse size fraction (+ 80 mesh) was 98.3% Total Carbon* (“Ct”) compared with 97.4% Ct in the Phase 2 Locked Cycle Tests** (“LCTs”)
  • The average grade of the medium size fraction, less than 80 mesh and greater than 150 mesh in size, was 98.2% Ct compared with 97.4% Ct in the Phase 2 LCTs
  • The average grade of the size fraction greater than 200 mesh was 98.0% Ct compared with 97.2% Ct in the Phase 2 LCTs
  • The average carbon content of the pilot plant campaign was 96.6% Ct compared to 96.4% Ct reported in the Company’s July 9, 2013 press release on the final results of the Phase II LCTs. It is important to note that these results were achieved despite the fact that the less than 200 mesh fraction was not subjected to another cleaning circuit in the pilot plant run as was done in the LCTs, meaning the carbon content of the overall sample would likely have been even higher.
  • These results indicate that all three concentrate size fractions may be easier and more cost effective to beneficiate into technology grade graphite due to the high grade carbon content obtained from the pilot plant testing. Higher concentrate grades translates into reduced levels of impurities that have to be removed in the thermal or hydrometallurgical purification processes.
*All carbon analyses were performed by SGS Canada Inc. (“SGS”) and are reported as total carbon (“Ct”). The analytical methods that were used to determine the metallurgical results included total carbon analysis by Leco on the final concentrates. The lower grade tailings products were analyzed by the graphitic carbon (“Cgr”) method to discount the organic carbon and carbonate carbon in the samples.

The fact that the medium and large graphite flakes could be upgraded to purity levels ranging between 98% Ct and 98.3% Ct by flotation suggests that the impurities are attached to the surface of the graphite flakes in the flotation concentrate and have the potential to be upgraded even further, to purity levels required by battery grade graphite manufacturers. The objective of the pilot plant testing was to produce the highest quality large flake graphite concentrate.

The pilot plant metallurgical testing was completed by SGS on a 23.3 tonne composite of drill core samples collected from the massive, semi-massive and low grade mineralization zones of the Lac Knife graphite deposit. The average total carbon (Ct*) head grade of the bulk sample was lower than the deposit average grade at 11.8% Ct in order to be able to increase the amount of mineralized material available for pilot plant testing at that time. Even with the lower head grade the metallurgical results were excellent confirming the robustness of the concentrator flowsheet design.

Overall, the graphite concentrate recovery decreased slightly from 92.5% in the Phase 2 LCTs to 91.0% in the pilot plant tests, while the amount of large flake graphite concentrate greater than 80 mesh recovered in the pilot plant test was 33.5% by weight compared with 42.5% in the LCTs. The decrease in large graphite flake recovery is attributable to the decision to employ aggressive polishing techniques that successfully improved the quality and increased the carbon content of the large flake graphite concentrate during the pilot plant tests. The assumption that the aggressive polishing conditions led to a breakage and/or folding of the graphite flakes is supported by the fact that the medium sized flake concentrate recovery with a size range of less than 80 mesh and greater than 150 mesh, increased to 29.8% from 21.2% in the LCTs.

** A locked cycle test (LCT) is a repetitive batch flotation test conducted to assess flow sheet design. It is the preferred method for arriving at a metallurgical projection from laboratory testing. In a LCT the intermediate products are incorporated in the following cycles, thus simulating a continuous flotation circuit on a laboratory scale.

Focus President and CEO Gary Economo said: “The pilot plant test results confirm once more the overall quality of our flake graphite resource at Lac Knife; a level of excellence that helps to further de-risk the project. More importantly, the results indicate that all of Lac Knife’s future production holds the potential for purification to premium-priced technology-grade graphite.

“Lac Knife,” he added, “provides the foundation for our mine-to-market to value-added technology business strategy. We anticipate no impediments to the successful execution of our mining and related corporate objectives.”

Dr. Joseph Doninger, Director of Manufacturing and Technology for Focus Graphite, stated: “The +98% Ct purity level and high recoveries achieved on the greater than 200 mesh flake size of graphite during the pilot plant tests confirm the robustness of the Lac Knife concentrator flowsheet design developed by SGS Inc. in the Phase I & II LCTs conducted in 2012 and 2013.”

About SGS Metallurgical Services (Lakefield)

SGS Canada Inc. (“SGS”) is recognized as a world leader in the development of concentrator flowsheet design and pilot plant testing programs. SGS’ Metallurgical Services division was founded over half a century ago. Its metallurgists, hydro-metallurgists and chemical engineers are experienced in all the major physical and chemical separation processes utilized in the recovery of metals and minerals contained in resource properties around the world.

The information pertaining to the metallurgical test program completed by SGS that is presented in this news release has been reviewed and approved by Mr. Oliver Peters, M.Sc., P.Eng, MBA, SGS Canada Inc. Consulting Metallurgist. Mr. Peters has extensive experience in the development of metallurgical processes and has managed the majority of the graphite testing programs conducted at SGS in recent years.

This news release has been reviewed by Mr. Jeff Hussey, P.Geo (Québec), VP-Project Development for Focus Graphite and a Qualified Person under NI 43-101 guidelines.

About Focus Graphite

Focus Graphite Inc. is an emerging mid-tier junior mining development company, a technology solutions supplier and a business innovator. Focus is the owner of the Lac Knife graphite deposit located in the Côte-Nord region of northeastern Québec. The Lac Knife project hosts a NI 43-101 compliant Indicated Mineral Resource Estimate of 4.9 million tonnes grading 15.8% graphitic carbon (Cgr) as crystalline graphite with an additional Inferred Mineral Resource Estimate of 3.0 Mt grading 15.6% Cgr of crystalline graphite. Focus’ goal is to assume an industry leadership position by becoming a low-cost producer of technology-grade graphite. On October 29th, 2012 the Company released the results of a Preliminary Economic Assessment (“PEA”) of the Lac Knife Project which demonstrated that the project has an excellent potential to become a graphite producer. As a technology-oriented enterprise with a view to building long-term, sustainable shareholder value, Focus also invests in the development of graphene applications and patents through Grafoid Inc.

Forward Looking Statements – Disclaimer

This news release may contain forward looking statements, being statements which are not historical facts, and discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company’s expectations are in our documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com Focus Graphite disclaims any intention or obligation to revise or update such statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

Focus Graphite Reports Final Locked Cycle Test Results From Lac Knife

Posted by AGORACOM-JC at 4:45 PM on Tuesday, July 9th, 2013

Focus Graphite Reports Final Locked Cycle Test Results From Lac Knife: Global Concentrate Grade of 96.4% C; 92.5% Flake Recovery and 35% to 58% Yield of Large High-Purity Flakes (+ 80 mesh)

Focus Graphite Inc. (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) (“Focus” or the “Corporation”) is pleased to report that the final Phase II Locked Cycle Test* (LCT) metallurgical results performed at SGS Canada Inc., in Lakefield, Ontario, continue to confirm an average concentrate grade of 96.4% C and a high average flake graphite recovery of 92.5% for its Lac Knife high-grade graphite deposit located near Fermont, Québec.

SGS Canada Inc. (“SGS”) has completed all six (6) Phase II locked cycle tests (LCTs) on composite core samples comprised of low-grade, semi-massive, and massive graphite mineralization with a head grade ranging between 6.0% C and 25.0% C.

Highlights of these test results are as follows:

The carbon content of graphite concentrates produced from the six (6) composites averaged 96.4% C, including the finest graphite flake concentrate (-200 mesh) produced. This is a 4.4% increase over Phase I LCTs completed in mid-2012.

The average graphite flake recovery for the overall deposit following the final Phase II LCT’s increased to 92.5% which confirms the previous four (4) tests and increases the recovery by 0.3% from the previous results.

The proportion of large flakes (+80 mesh) recovered from the low grade, semi massive, and massive types of mineralization (total: six (6) graphite concentrate samples) ranges between 35% and 58%;

The Phase II LCT program produced consistent results for all of the composite samples that were tested representing the mineralization types, which confirms the suitability of the proposed concentrator flow sheet to process these different types of mineralization within the Lac Knife deposit, namely the low-grade, semi-massive, and massive graphite mineralization;

A series of comminution tests generally characterized the seven (7) composite samples (six (6) mineralization and one (1) waste host rock) that represent the deposit, to require a low consumption of energy per tonne processed (kWhr/t). Further testing will establish this more precisely which will be favourable for the crushing and grinding circuit design and operational costs per tonne;

Detailed chemical analysis of the final concentrates did not identify any impurities that are normally considered deleterious.

In addition, a LCT was completed on a composite sample of the deposit’s host rock grading 1% C. The concentrate grade obtained was also very good at 96%C with a flake graphite recovery of 94.5%. These results suggest that mining dilution would not impact the recovery nor the final concentrate grade and quality in a negative way;

* A locked cycle test is a repetitive batch flotation test conducted to assess concentrator flow sheet design. It is the preferred method for arriving at a metallurgical projection from laboratory testing. The final cycles of the test are designed to simulate a continuous, stable flotation circuit.

“These metallurgical test results were incorporated into the flow sheet design for the pilot plant tests that were completed in early May. The final pilot plant results are now pending and we hope to communicate this soon.” said Dr. Joseph Doninger, Director of Manufacturing and Technology for Focus Graphite.

The purpose of the pilot plant is to confirm the results obtained following the LCT test program and also to produce marketing samples of graphite flake for end user evaluations and generate graphite raw materials for second transformation testing. Pilot plant test results are pending.

Focus President and CEO Gary Economo said: “These latest results continue to confirm that Lac Knife is an exceptional flake graphite deposit. These increased recovery levels are resulting in a very high carbon content for all of the concentrates produced, even for the finest (-200 mesh) graphite flake concentrate which could provide a low cost raw material that can potentially be upgraded further to meet the specification limits of high purity carbon that the lithium-ion battery manufacturers require. This will further our discussions with potential end users for off-take agreements. It supports our focus on the lithium-ion battery market for high technology transportation and energy applications which is an objective of the Quebec Government. This will also allow us to use the much higher-priced large graphite flakes for other high-technology applications.”

All carbon analyses were performed by SGS and are reported as total carbon (C). The analytical methods that were used to determine the metallurgical results on the final concentrates included double loss on ignition analysis (double LOI) and total carbon analysis by Leco. The lower grade tailings products were analyzed by the graphitic carbon method to discount the organic carbon and carbonate carbon in the samples.

About SGS Metallurgical Services (Lakefield)

SGS Canada Inc. (“SGS”) is recognized as a world leader in the development of flow sheets and pilot plant testing programs. SGS’ Metallurgical Services division was founded over half a century ago. Its metallurgists, hydro-metallurgists and chemical engineers are experienced in all the major physical and chemical separation processes utilized in the recovery of metals and minerals contained in resource properties around the world.

About Focus Graphite

Focus Graphite Inc. is an emerging mid-tier junior mining development company, a technology solutions supplier and a business innovator. Focus is the owner of the Lac Knife graphite deposit located in the Côte-Nord region of northeastern Québec. The Lac Knife project hosts a NI 43-101 compliant Measured and Indicated mineral resource of 4.972 Mt grading 15.7% carbon as crystalline graphite with an additional Inferred mineral resource of 3.000 Mt grading 15.6% crystalline graphite. Focus’ goal is to assume an industry leadership position by becoming a low-cost producer of technology-grade graphite. On October 29th, 2012 the Company released the results of a Preliminary Economic Analysis (“PEA”) of the Lac Knife project which demonstrates that the project has an excellent potential to become a producer of graphite. As a technology-oriented enterprise with a view to building long-term, sustainable shareholder value, Focus invests in the development of graphene applications and patents through Grafoid Inc.

The information pertaining to the metallurgical test program completed by SGS that is presented in this news release has been reviewed and approved by Mr. Oliver Peters, M.Sc., P.Eng, MBA, SGS Canada Inc. Consulting Metallurgist. Mr. Peters has extensive experience in the development of metallurgical processes and has managed the majority of the graphite testing programs conducted at SGS in recent years.

This news release has been reviewed and approved by Mr. Jeff Hussey, P.Geo. (Québec), he is the VP Project Development for Focus Graphite and a Qualified Person under National Instrument 43-101 guidelines.

Forward Looking Statements – Disclaimer

This news release may contain forward looking statements, being statements which are not historical facts, and discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company’s expectations are in our documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com. Focus Graphite disclaims any intention or obligation to revise or update such statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

FOR FURTHER INFORMATION PLEASE CONTACT:

Contact Information:
Focus Graphite Inc.
Mr. Gary Economo
President and Chief Executive Officer
613-691-1091, ext. 101
geconomo@focusgraphite.com
www.focusgraphite.com

Flake Graphite Prices Have Bottomed: Simon Moores

Posted by AGORACOM-JC at 1:56 PM on Thursday, May 30th, 2013

The Metals Report: Simon, the Chinese government says it is no longer willing to sacrifice the environment to mine and export commodities. You recently visited several graphite mining operations in China. Is this for real or just paying lip service?

Simon Moores: When you visit these mines and see how dated and wasteful some of their mining practices are, the environmental issues are apparent. But while this stance is partially to benefit the environment, it’s also about China wanting to retain raw materials and use them to manufacture higher-value products. China does have some leading graphite producers that are now investing in not only improving their products as well as their mining practices. This is something non-Chinese companies will have to keep track of.

TMR: If China is “going green,” what are the ripple effects that graphite investors in the West will feel?

SM: China’s “going green” is twofold. Green from the mining side means becoming more efficient with graphite mining and using less hazardous materials for processing the material. This will result in less material being available for export. Buyers outside of China have no choice but to eventually find supplies elsewhere.

From the market side, going green undoubtedly means expanding the electric vehicle market. The growth for batteries, especially lithium-ion batteries, could be explosive. This could transform demand for key raw materials, especially flake graphite.

TMR: What were the biggest takeaways from your visit to China?

SM: The biggest one was China’s willingness to control the industry. Its amorphous graphite industry has been consolidated. In Hunan province, the government consolidated close to 230 small-time mines into one company that now controls 50–60% of the production in that area. Another takeaway is that flake graphite is on China’s radar. Although it was the amorphous graphite mines that were consolidated, flake graphite, which is the bigger business, was being discussed.

Black Dragon graphite mine China

The Black Dragon graphite Mine in China. Photo credit: Laura Syrett
TMR: Some people have speculated that the consolidation strategy in flake graphite could ultimately lead China to flood the market with graphite, much like it did in the mid-’90s, forcing some graphite miners out of business. You disagree. Tell us why.

SM: Today is a completely different situation from the mid-’90s. A generation ago, China was on its way up. It was getting its primary industries underway, growing as quickly as possible, taking in as much revenue as possible. Back then, China could mine cheaply, export cheaply, undercut everybody and get quick money. There was no competition. Now, China needs to move its economy to the next level, to the value-added level. It wants to compete with South Korea, Japan, Europe and the U.S. Cheap exports are not the way to do that.

Its challenge is to appease the mining companies through things like tax breaks on higher-value products to push these companies to develop value-added products such as battery-grade graphite and even the batteries themselves. The car industry is a perfect example. Ten years ago, China didn’t have one; now I expect to see Chinese cars on European and North American roads in the next three years.

TMR: China also has a source of flake graphite in North Korea. What is going on there?

SM: China has exported flake graphite from North Korea for the last decade from a mine that once was a joint venture between North and South Korea. It exported about 1,000 tonnes in 2012. The graphite goes to China, where it is blended with other products. This is a captive source for China that has historically been used internally.

TMR: Why is this Korean source being talked about more now?

SM: I am not sure. Our research indicates that China is not getting as much flake graphite from North Korea as previously thought. The problem is that bad information gets around really quickly, especially when it is free. Everyone thought North Korea was sending 30,000 tonnes per year (tpa) of flake graphite to China. We think it was actually less than 1,000 tonnes in 2012. North Korea was considered the fourth-largest producer in the world. If the data are wrong, that could indicate there is a lot less flake graphite in the market than people realized.

The same problem exists with India. The Indian production figures that are freely available for flake graphite indicated production of 140,000 tpa when, according to our research, in the last 12 months it was actually 35,000 tpa. If that is the case, the rest of world production could be well overestimated.

TMR: The price of flake graphite has been dropping since May 2012, mostly owing to softer demand from steel refractories and lubricant markets.How is this affecting the economics of flake graphite projects?

SM: Obviously, lower prices would have a negative effect on projects whose economics were done 12–18 months ago using the very high prices we saw then. Prices have come down about 50% on average from the 2011-2012 peak. On that basis, some companies are already reevaluating.

“Graphite buyers need supply security; the price volatility of the past five years has not been good for business.”

TMR: Does that invalidate their preliminary economic assessments and other economic studies?

SM: “Invalidate” is probably too strong a word, but the more responsible graphite juniors are revaluating their economics based on lower prices. Typically, these companies use price averages for their analyses. Predicting the future price of graphite price is always guesswork. Whether they take a 12-, 18- or 24-month average, it will be an average, and there will always be problems with that.

But understandably, miners have to use a price and this is where we come in, as the only independents pricing natural graphite.

natural graphite price trends

Source: Industrial Minerals Data

TMR: What is the current price of flake graphite?

SM: Using our most commonly quoted grade, the +80 mesh, 94–97% carbon, the price is now $1,400/tonne. It has dropped about 50% since the highs of 2011 and 2012.

TMR: What price do you predict through 2015?

SM: I think the industry has seen the bottom of graphite prices and should expect a rise from here or in Q3/13. Flake graphite prices have settled higher than expected. They remain 60% higher than pre-recession levels in 2008-2009. Other commodities, especially fluorspar, have crashed and hit all-time lows. Graphite has not done that.

TMR: What is the path forward for companies developing graphite projects?

SM: It depends on the company, whether it is coming from an industry perspective or, like most of the juniors, from a stock market perspective. From an industry perspective, the hope is to move away from dependency on China. Graphite buyers need supply security; the price volatility of the past five years has not been good for business. For a company producing refractories, raw materials are by far the biggest input cost, and price volatility does not allow for long-term business planning. For long-term supply security, companies are looking away from China.

TMR: Does that make graphite a go-long play?

SM: Yes, because the fundamentals will not change any time soon.

TMR: The other great debate in this sector is whether graphene is worth talking about as part of an economic thesis.

SM: I do not think graphene will ever be a volume business for any graphite producers. The value for graphite companies going into graphene, which only a handful are doing, is the research and development (R&D) and new technology that will allow them to produce graphene from natural graphite. This technology will be a game changer for materials science, and the graphite industry will be pretty irrelevant in terms of global impact.

Some companies are experimenting with carbon sciences, merging carbon materials into their applications. Companies will never make money from selling large volumes of graphite to make graphene.

TMR: Realistically, how far away are we from producing graphene from mined graphite?

SM: A few companies are pioneering that technology. Grafoid Inc. has an R&D agreement with Focus Graphite Inc. (FMS:TSX.V) to investigate and develop a graphene-based composite for electrochemical energy storage for the automotive and/or portable electronics sectors. They have just launched the world’s first trademarked graphene product—MesoGraf. But this material is still in the R&D phase.

The value of these companies is their research into the best methods to produce graphene and finding applications for it. No one really knows how to use it—the graphene pioneers have to build an industry and convince people to use it. Everyone now knows the theory, but the reality—the real world application—is something that will take time.

“There have not been any new mines opened in a generation. When you have this kind of growth potential, matched with underinvestment on the supply side, it doesn’t take a genius to work out that something has to change.”

I went to a graphene event last month, and it struck me that people are not worried about how to produce it, they are more focused on developing the market, on getting end-users to try to make products that include graphene.

TMR: What will be the next graphite project to reach production?

SM: If the press releases are anything to go by, I would say Ontario Graphite Ltd. (private). But it is hard for us to analyze because it is a private company that does not put out much information. We look less at the tonnages in the ground and more at the flake distribution of the deposit. Ultimately, these companies will need to sell material. Flake fines, or smaller-flake graphite, is the hardest to sell, while large flake the easiest.

TMR: Suppose, just for the sake of argument, that Ontario Graphite did add the 20,000 tonnes it says it will to the market. With TIMCAL (a member of Imerys [NK:PA]) already operating at a roughly similar production rate, could both operations continue at a profit?

SM: No, I do not think those two mines could both operate at that rate for very long—not in today’s market conditions. The good news is that the production rate at TIMCAL’s Lac des Iles mine has always been falling, while costs have been rising for a while now. TIMCAL has been looking at other options and other mines, at other graphite juniors. You can pretty much assume that Lac des Iles is on its last legs, which is good news for graphite juniors.

TMR: What does that news from TIMCAL mean for a company like Northern Graphite Corporation (NGC:TSX.V; NGPHF:OTCQX), which also has an advanced-stage graphite project in Ontario?

SM: It is great news for companies like Northern Graphite. The TIMCAL mine is a generation old. Northern Graphite has been around for ages under a different name prior, but I think that will pay off because of the amount of information the company has on that deposit. I think everything it’s been working toward will pay off.

TMR: As a graphite deposit, what does Bissett Creek have going for it?

SM: The large flake size is the key attraction. The grade is very low, but that’s not much of a problem with graphite mining if you can economically extract it. Northern Graphite has a much higher distribution of large-flake material, which is what the industry wants.

TMR: What are the next steps for Northern Graphite?

SM: The next step is to redo the economics. The company released more drill information and increased its confirmed resource data. From there, it is a matter of riding out the storm until the market cycle comes around again. When that happens, it will be one of the strongest junior graphite companies.

TMR: In our last interview you talked about Energizer Resources Inc. (EGZ:TSX.V; ENZR:OTCBB) and its Green Giant project in Madagascar. Can you give us an update?

SM: Energizer Resources is doing something very similar to Northern Graphite. It has its asset, its project and a lot of information gathered already. Energizer has to get the word out and go to the market to get funding. I think management is focusing on that, because there is only so much drilling and reporting public companies can do. In other news, Energizer is planning on making an agreement with the nearby Sakoa Coal Field project that would allow Energizer to purchase “over-the-fence” power and share infrastructure, reducing its operating costs.

Logistics is a major factor, particularly in somewhere like Madagascar. If the company can team up with a much larger operation, then it will be a compelling project.

TMR: Can you share a couple of other graphite stories that have compelling narratives?

SM: Talga Resources Ltd. (ASX: TLG) has been working on a JORC-confirmed (Joint Ore Resources Committee) graphite resource in Sweden. In terms of volume, it is smaller than deposits in Canada or Africa, but in terms of quality it is up there. I would look out for it.

Syrah Resources Ltd. (ASX: SYR) is the leading graphite junior in Australia. It also is developing the Balama graphite project in Mozambique. Syrah had a great 12 months when everybody else struggled.

Zenyatta Ventures Ltd. (ZEN: TSX.V) has made a lot of headlines in recent months and enjoyed a high share price when everyone else has suffered. The company has a unique project with very high carbon purities. Zenyatta has been coy about allowing others to test this so far. The data it has released is very impressive on the carbon purities front, but because it’s so unique, the question is whether or not it can be used in the same markets as flake or synthetic graphite. Only time will tell.

TMR: What thoughts would you leave investors with for the rest of 2013?

SM: Look at the long-term basics in the graphite industry. Look at where graphite is used. Traditional volume markets include refractories, which is the steel industry. High-tech uses include electric vehicle batteries and portable electronics. Very few raw materials have this balance.

Look at the supply situation. China continues to dominate, and there have not been any new mines opened in a generation. When you have this kind of growth potential, matched with underinvestment on the supply side, it should not take a genius to work out that something has to change.

TMR: Simon, thank you for your time and your insights

Simon Moores is manager of Industrial Minerals Data, a business that sets prices for natural graphite and fluorspar industries from offices in London and Shanghai. He has been reporting on, researching and analyzing the non-metallic minerals sector since 2006, when he joined London-based publishing and research house Industrial Minerals. He has specialist knowledge in critical and strategic minerals including graphite, lithium, rare earths and titanium. He led the research and publication of the market study, “The Natural Graphite Report 2012: data, analysis and forecast for the next five years.” He has chaired conferences and given keynote presentations around the world. He has also been interviewed by international press including London’s Times regarding Chinese control on world graphite production, and The New York Times with regard to rare earths after breaking the story that China blocked exports to Japan in 2009.
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DISCLOSURE:

1) Brian Sylvester conducted this interview for The Metals Report and provides services to The Metals Report as an independent contractor. He or his family own shares of the following companies mentioned in this interview: None.

2) The following companies mentioned in the interview are sponsors of The Metals Report: Energizer Resources Inc. and Northern Graphite Corporation. Streetwise Reports does not accept stock in exchange for its services or as sponsorship payment.

3) Simon Moores: I or my family own shares of the following companies mentioned in this interview: None. I personally or my family am paid by the following companies mentioned in this interview: None. My company has a financial relationship with the following companies mentioned in this interview: None. I was not paid by Streetwise Reports for participating in this interview. Comments and opinions expressed are my own comments and opinions. I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview.

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Focus Graphite Reports Commissioning and Start Up of Lac Knife Project Pilot Plant

Posted by AGORACOM-JC at 8:52 AM on Wednesday, April 17th, 2013

OTTAWA, ONTARIO–(April 17, 2013) - Focus Graphite Inc. (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) (“Focus” or the “Company”) is pleased to report the commissioning of its pilot plant and the start-up of circuit testing for the production of high-grade graphite concentrates from the Company’s wholly-owned Lac Knife, Québec graphite project.

The principal objectives of the pilot plant testwork are to confirm the results from Phase II bench scale Locked Cycle Tests (LCT)*; to assess the technical viability and operational performance of the processing plant design; to generate tailings for environmental testing, and; to produce a range of graphite raw materials for customer assessments and for further upgrading.

The Lac Knife project pilot plant was designed and built and is being operated by SGS Canada Inc. (“SGS”) in Lakefield, Ontario. The testing is expected to last 4-6 weeks.

Dr. Joseph Doninger, Focus Graphite’s Director of Manufacturing and Technology said the pilot plant tests are a critical component of the Lac Knife project development program.

“The testwork will provide us with the information we need to refine and optimize the design our mineral processing flow sheet and adjust individual circuits. They’ll also generate data needed for scale up of relevant processing equipment and to identify those critical controls required to maintain consistency of graphite concentrate recovery and purity.

“At the end of the day,” Dr. Doninger said, “the pilot plant campaign will provide us with the knowledge and the ability to adjust our processes to produce high purity graphite concentrates to fit individual customers’ needs and technical requirements.”

On March 4, 2013, the Company published its preliminary Phase II LCT* results which confirmed the high purity of the concentrates generated from four composite core samples comprised of low-grade and semi-massive graphite with a head grade ranging between 6.0% C and 20.7% C.

The highlights of those tests conducted by SGS confirmed:

  • The average amount of graphite flake recovered from the core samples in the Phase II LCT increased to 92.2% compared with a recovery of 84.7% graphite flake in the Phase I LCT;
  • The proportion of large flakes (+80 mesh) in the graphite concentrates ranged between 35% and 58%;
  • The carbon content of graphite concentrates produced from the four (4) composites averaged 96.6 %C, including the fine flake fraction (-200 mesh), a 4.6% increase over Phase I LCT completed in mid-2012.

Final results for Phase II LCT including for the two composite drill core samples of massive graphite mineralisation are pending.

* A locked cycle test is a repetitive batch flotation test conducted to assess flow sheet design. It is the preferred method for arriving at a metallurgical projection from laboratory testing. The final cycles of the test are designed to simulate a continuous, stable flotation circuit.

Lac Knife Pilot Plant Testing Program

The pilot plant was designed, built and is being operated by SGS Canada Inc. (“SGS”) in Lakefield, Ontario. The flow-sheet design for the pilot plant is based on the results of Phase II bench top LCT at SGS and on the findings of experimental test work conducted at Metchib Metallurgical Laboratories of Chibougamau, Québec. The pilot plant is designed to operate in continuous mode at a feed rate of 200 kg per hour and it includes grinding mills, mechanical flotation cells, magnetic separator, flotation columns, classification devices, dewatering and other ancillary equipment such as power generation, electrical components, internal piping, a water distribution system and flotation reagent distribution. The grinding and floatation components of the circuit have been configured specifically to minimize flake wear and breakage and ensure maximize flake size preservation.

Two bulk graphite composites were provided to SGS by the Company to use as feed material for the pilot plant. The first is a bulk 21.6t sample of weathered semi-massive grade graphite mineralisation collected from surface that will be used for mechanical and metallurgical commissioning of the pilot plant circuit. The second bulk composite sample was assembled from drill core and consists of a 23.3t blend of core samples from the massive, semi-massive and low-grade mineralisation zones from the deposit. Both composites were crushed and homogenized by SGS prior to the pilot plant campaign to ensure consistent feed. Once the pilot plant circuit is dialed-in using the surface bulk sample, the composite core sample will be introduced into the circuit. The results from the processing of the bulk drill core sample will be used to establish the processing plant flow-sheet design. Graphite flake samples produced from the pilot plant will be submitted to potential customers for quality evaluations and purification trials designed to generate final saleable products.

Testing at SGS is expected to last 4-6 weeks.

About Focus Graphite

Focus Graphite Inc. is an emerging mid-tier junior mining development company, a technology solutions supplier and a business innovator. Focus is the owner of the Lac Knife graphite deposit located in the Côte-Nord region of northeastern Québec. The Lac Knife project hosts a NI 43-101 compliant Measured and Indicated mineral resource of 4.972 Mt grading 15.7% carbon as crystalline graphite with an additional Inferred mineral resource of 3.000 Mt grading 15.6% crystalline graphite. Focus’ goal is to assume an industry leadership position by becoming a low-cost producer of technology-grade graphite. On October 29th, 2012 the Company released the results of a Preliminary Economic Analysis (“PEA”) of the Lac Knife project which demonstrates the project has excellent potential to become a producer of graphite. As a technology-oriented enterprise with a view to building long-term, sustainable shareholder value, Focus invests in the development of graphene applications and patents through Grafoid Inc.

About SGS Canada’s Metallurgical Services (Lakefield)

SGS Canada Inc. (“SGS”) is recognized as a world leader in the development of flow sheets and pilot plant programs. SGS’ Metallurgical Services division was founded over half a century ago. Its metallurgists, hydrometallurgists and chemical engineers are experienced in all the major physical and chemical separation processes utilized in the recovery of metals and minerals contained in resource properties around the world.

The technical information presented in this press release has been reviewed by Marc-André Bernier, M.Sc., P.Geo. (Québec and Ontario), Focus Director and a Qualified Person under NI 43-101.

Forward Looking Statements – Disclaimer

This news release may contain forward looking statements, being statements which are not historical facts, and discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company’s expectations are in our documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com Focus Graphite disclaims any intention or obligation to revise or update such statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

 

Mr. Gary Economo
President and Chief Executive Officer
613-691-1091, ext. 101
geconomo@focusgraphite.com
www.focusgraphite.com

Grafoid Inc. and the University of Waterloo Announce a JV Agreement to Develop High Performance Graphene Electrochemical Energy Systems

Posted by AGORACOM-JC at 10:28 AM on Tuesday, April 16th, 2013

OTTAWA, ONTARIO–(April 16, 2013) - Focus Graphite Inc. (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) on behalf of Grafoid Inc. (“Grafoid”) is pleased to announce the signing of a two-year R&D agreement between Grafoid Inc. and the University of Waterloo to investigate and develop a graphene-based composite for electrochemical energy storage for the automotive and/or portable electronics sectors.

Gary Economo, President and CEO of Focus Graphite Inc. and Grafoid Inc., said the objective of the agreement is to research and develop patentable applications using Grafoid’s unique investment which derives graphene from raw, graphite ore to target specialty high value graphene derivatives ranging from sulfur graphene to nanoporous graphene foam.

Some of the new graphene materials will contribute positively as a powerful next generation composite for fuel cell/electrochemical supercapacitor applications, he said.

Those applications include but are not limited to: electrodes, nanocatalyst support, electrolyte membranes and bipolar plates, transparent electrodes and other potential applications which create high-efficiency solutions in electrochemical energy systems and portable electronics.

“Today’s announcement marks Grafoid’s fifth publicly declared graphene development project with a major academic or corporate institution, and the third related directly to a next generation green technology or renewable energy development project,” Mr. Economo said.

It follows R&D partnering projects announced with Rutgers University’s AMIPP, CVD Equipment Corporation, with Hydro-Quebec’s research institute, IREQ, and with British Columbia-based CapTherm Systems, an advanced thermal management technologies developer and producer.

Mr. Economo said Grafoid’s investment in highly conductive graphene, combined with the University’s advanced catalyst technologies could advance the science “by opening the door to a realistic, cost-competitive option to other energy solutions.”

“Given our growth agenda for 2013, we expect to be in a position to announce a number of additional application development projects throughout the course of 2013,” Mr. Economo added.

Dr. Aiping Yu, Assistant Professor, Department of Chemical Engineering at the University of Waterloo will be the lead investigator of the project. Dr. Gordon Chiu, Research Scientist, Department of Chemical Engineering at the University of Waterloo will be working on the project.

Dr. Chiu said that research and discovery on graphene sulfur and nanoporous graphene is well documented and is a cornerstone for a wide range of applications

“The technology for tailoring graphene for energy storage systems must be developed. This will lead to unique intellectual property assets.

“Our group’s approach for targeting graphene derivatives that powerfully impact next generation energy storage systems adds significant value to commercial applications while providing invaluable knowledge and insight about the engineering of graphene and certain graphene metamaterials,” Dr. Chiu said.

Dr. Yu said that graphene without proper porosity and polarity remain “a constant roadblock for entry into next generation energy storage applications.

“My group will focus on solving the specific tailoring and design of graphene to enable entry into these energy storage areas” she said. ”

“Grafoid’s decision to invest in reducing or removing such a roadblock is a brilliant approach of enhancing graphene for impacting fuel cells, electrochemical supercapacitors and/or other portable energy storage systems,” Dr. Yu added.

Background

Alternative Energy & Graphene:

The quest for alternative energy sources is one of the most important and exciting challenges facing science and technology in the 21st century. Environmentally-friendly, efficient and sustainable energy generation and usage have become large efforts for advancing human societal needs. Graphene is a pure form of carbon with powerful characteristics which can bring about success in portable, stationary and transportation applications in high energy demanding areas in which electrochemical energy storage and conversion devices such as batteries, fuel cells and electrochemical supercapacitors are the necessary devices.

Electrochemical Supercapacitors:

Supercapacitors, a zero-emission energy storage system, have a number of high-impact characteristics, such as fast charging, long charge-discharge cycles and broad operating temperature ranges, currently used or heavily researched in hybrid or electrical vehicles, electronics, aircrafts, and smart grids for energy storage. The US Department of Energy has assigned the same importance to supercapacitors and batteries. There is much research looking at combining electrochemical supercapacitors with battery systems or fuel cells.

Fuel Cells:

A fuel cell is a zero-emission source of power, and the only byproduct of a fuel cell is water. Some fuel cells use natural gas or hydrocarbons as fuel, but even those produce far less emissions than conventional sources. As a result, fuel cells eliminate or at least vastly reduce the pollution and greenhouse gas emissions caused by burning fossil fuels, and since they are also quiet in operation, they also reduce noise pollution. Fuel cells are more efficient than combustion engines as they generate electricity electrochemically. Since they can produce electricity onsite, the waste heat produced can also be used for heating purposes. Small fuel cells are already replacing batteries in portable products.

Toyota is planning to launch fuel cell cars in 2015, and has licensed its fuel cell vehicle technology to Germany’s BMW AG. BMW will use the technology to build a prototype vehicle by 2015, with plans for a market release around 2020.

By 2020, market penetration could rise as high as 1.2 million fuel cell vehicles, which would represent 7.6% of the total U.S. automotive market. Other fuel cell end users are fork lift and mining industries which continuously add profits to this growing industry.

Proton or polymer exchange membranes (PEM) have become the dominant fuel cell technology in the automotive market.

The U.S. Department of Energy has set fuel cell performance standards for 2015. As of today, no technologies under development have been able to meet the DOE’s targets for performance and cost.

About Focus Graphite Inc.

Focus Graphite Inc. is an emerging mid-tier junior mining development company, a technology solutions supplier and a business innovator. Focus is the owner of the Lac Knife graphite deposit located in the Côte-Nord region of northeastern Québec. Focus’ goal is to assume an industry leadership position by becoming a low-cost producer of technology-grade graphite. As a technology-oriented enterprise with a view to building long-term, sustainable shareholder value, Focus Graphite is also investing in the development of graphene applications and patents through Grafoid Inc.

About Grafoid Inc.

Grafoid, Inc. is a privately held Canadian corporation investing in graphene applications and economically scalable production processes for pristine bilayer and trilayer graphene and its graphene derivatives from raw, unprocessed, graphite ore.

Focus Graphite, Inc. (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) holds a principal interest in Grafoid on behalf of its shareholders.

About the University of Waterloo

In just half a century, the University of Waterloo, located at the heart of Canada’s technology hub, has become one of Canada’s leading comprehensive universities with 35,000 full- and part-time students in undergraduate and graduate programs. Waterloo, as home to the world’s largest post-secondary co-operative education program, embraces its connections to the world and encourages enterprising partnerships in learning, research and discovery. In the next decade, the university is committed to building a better future for Canada and the world by championing innovation and collaboration to create solutions relevant to the needs of today and tomorrow. For more information about Waterloo, please visit www.uwaterloo.ca.

Contact Information

 

Gary Economo
President and CEO
Focus Graphite Inc.
613-691-1091 ext. 101
geconomo@focusgraphite.com
www.focusgraphite.com

Grafoid Inc. and CapTherm Systems Inc. Joint Venture to Develop Next-Generation Graphene Cooling Systems for EV and LED Applications

Posted by AGORACOM-JC at 12:23 PM on Tuesday, April 9th, 2013

OTTAWA, ONTARIO–(April 9, 2013) - Focus Graphite Inc. (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) on behalf of Grafoid Inc., announced today Grafoid’s joint venture development agreement with Coquitlam, British Columbia-based CapTherm Systems Inc. to develop and commercialize next generation, multiphase thermal management systems for electric vehicle (EV) battery and light emitting diode (LED) technologies.

CapTherm Systems Inc – Progressive Thermal Management is a thermal management/cooling company specializing in personal computer, server, LED, and electric vehicle cooling systems. It develops and commercializes proprietary, next-generation high-power electronics cooling technologies.

Its multiphase cooling technologies represent the core of its products that harness the power of latent heat from vaporization.

Under the terms of the agreement, Grafoid Inc., a company invested in the production of high-energy graphene and the development of graphene industrial applications will supply both materials and its science for adapting graphene to CapTherm’s existing EV and LED cooling systems.

“This alliance represents a milestone for both companies in their pursuit of cutting edge, energy-saving, green technology graphene applications,” said George Economo, Grafoid’s business development manager.

“Integrating graphene’s superior thermal conductivity to CapTherm’s existing EV and LED cooling applications goes to the core of Grafoid’s IP development strengths,” he said.

CapTherm Systems CEO & Technical Director Timo Minx said next generation cooling technologies require next generation materials.

“Graphene and its properties as a superconductor will enable CapTherm to position itself well for future thermal challenges,” Mr. Minx said.

“Making our products even more competitive by taking advantage of graphene’s lateral and vertical heat spreading capabilities is a logical step in advancing our science to meet those future challenges,” Mr. Minx added.

He said graphene is a novel 21st century material that has the potential to revolutionize a multitude of markets.

About Grafoid Inc.

Grafoid, Inc., is a privately owned graphene investment and graphene business development company establishing international standards for the production of economically scalable graphene.

Focus Graphite Inc. holds a major interest in Grafoid on behalf of its shareholders.

About CapTherm Systems Inc.

CapTherm specializes in the development and commercialization of proprietary next-generation high-power electronics cooling technologies. Solid state multiphase technology represents the core of CapTherm’s products and harnesses the raw power of latent heat of vaporization. The CT Fusion line of products is the only commercially available electronics cooling product in the market that takes advantage of a phase change (from liquid to vapor) in combination with a thermal pump to create a pumped cooling loop with no moving parts requiring no additional electric power offering increased reliability and performance over contemporary cooling systems. Our technology enables the creation of a broad range of industry applications that require smaller but higher performance, higher reliability and more energy efficient products – all at a lower cost.

About Focus Graphite Inc.

Focus Graphite Inc. is an emerging mid-tier junior mining development company, a technology solutions supplier and a business innovator. Focus is the owner of the Lac Knife graphite deposit located in the Côte-Nord region of northeastern Québec. Focus’ goal is to assume an industry leadership position by becoming a low-cost producer of technology-grade graphite. As a technology-oriented enterprise with a view to building long-term, sustainable shareholder value, Focus Graphite is also investing in the development of graphene applications and patents through Grafoid Inc.

Forward-Looking Statements – Disclaimer

This news release may contain forward-looking statements, being statements which are not historical facts, and discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company’s expectations are in our documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com Focus Graphite disclaims any intention or obligation to revise or update such statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

 

Focus Graphite Inc.
Mr. Gary Economo
President and Chief Executive Officer
613-691-1091, ext. 101
geconomo@focusgraphite.com
www.focusgraphite.com

CapTherm Systems Inc.
Mr. Philipp Fuhrmann
Chief Operating Officer
778-284-7691 ext 102
philipp@captherm.com
www.captherm.com

Focus Graphite Releases Infill and Deposit Margin Drilling Results at Lac Knife Deposit : 42.8 m grading 20.43% Cgr in Hole LK-12-128

Posted by AGORACOM-JC at 11:25 AM on Tuesday, April 9th, 2013

OTTAWA, ONTARIO–(April 9, 2013) - Focus Graphite Inc. (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) (“Focus” or the “Company”) is pleased to report the results of the summer 2012 infill and deposit margin drilling program on the Company’s 100%-owned Lac Knife graphite Property (the “Property”), located in the Grenville Geological Province of northeastern Québec. Fifty-six (56) large diameter (PQ-sized) core holes (total: 5,638 m) were drilled with the aim to upgrade the current Inferred mineral resources in the southeastern part of the Lac Knife deposit to the Indicated category; to map the limits of the deposit; and to provide sufficient mineralised feed material for phase II lock cycle metallurgical testing and for the pilot plant testing program currently scheduled to commence this month.

Hole LK-12-128 drilled on Line 500 S targeted the western zone of the deposit and returned one of the best graphitic carbon (Cgr) intersections of the program (Table 1):

Hole LK-12-128: 42.8 m grading 20.43% Cgr (from 60.7 to 103.5 m), including 11.8 m grading 36.08% Cgr (from 79.7 to 91.5 m)

Most of the drill holes intercepted significant graphite intersections* along the strike length of West, Central and East zones of the deposit as evidenced by the following Holes:

Hole LK-12-135 drilled on section 675 S: 60.5 m grading 17.88% Cgr (from 61.0 to 121.5 m), including 13 m grading 32.33% Cgr (from 70 to 83 m) and 11.8 m grading 26.39% Cgr (from 106.7 to 118.5 m)
Hole LK-12-147 drilled on section 375 S: 42.8 m grading 17.59% Cgr (from 12.4 to 55.2 m), including 5.4 m grading 39.56% Cgr (from 15.4 to 20.8 m)
* Significant intercepts are defined as Cgr > 5% over a minimum of 6 m; maximum internal dilution of 6 m; maximum external dilution of 0 m.

All 40 significant intercepts are summarized in Table 1. Sectional views of the drilling on lines 375 S, 500 S and 675 S are available on the Company’s website at www.focusgraphite.com).

Focus Graphite President and CEO Gary Economo states: “We are extremely pleased with the results of our infill resource drilling program at Lac Knife which continue to deliver high graphite grades over significant thicknesses in both the West and Central zones of the deposit. The 2012 drilling was primary designed to improve our current understanding of the limits, geometry, and continuity in thickness and grade of the graphite mineralisation, key elements required to upgrade our current mineral resource estimate and map additional resources. Our summer 2013 exploration program at Lac Knife will include additional resource drilling to consolidate the size and limits of the deposit”.

Table 1: Summary of significant graphitic carbon drill core intersections (Cgr > 5% and minimum intersection of 6 m) from the 2012 infill and deposit margin drilling program at the Lac Knife property.

Hole Azimuth Dip Total
Length
(m)
From
(m)
To
(m)
Core
Length**
(m)
Cgr***
(%)
S
(%)
LK-12-116 N078 -45 56 35.7 48.8 13.1 10.11 3.62
LK-12-117 N075 -50 135 64.5 79.5 15.0 7.08 3.18
LK-12-119 N081 -47 147 49.5 72.8 23.3 13.10 7.42
112.8 129.9 17.1 13.43 7.03
LK-12-120 N080 -47 138 54.7 68.2 13.5 12.60 5.30
114.5 126.7 12.2 10.45 5.47
LK-12-121 N081 -47 146 71.6 88.5 17.0 12.52 4.32
LK-12-123B N073 -47 171 23.3 41.8 18.5 15.84 5.18
LK-12-124 N089 -47 141 33.4 48.8 15.4 21.69 5.90
100.5 117.7 17.2 13.12 6.12
LK-12-125 N080 -47 159 6.9 18.0 11.2 17.93 5.22
24.2 31.4 7.2 15.62 4.22
84.0 102.5 18.5 12.63 7.81
LK-12-126 N078 -47 146 66.0 85.5 19.5 9.09 7.52
LK-12-127 N062 -69 131 16.6 33.1 16.5 19.08 4.98
90.2 112.3 22.1 12.19 6.29
LK-12-128 N075 -52 125 60.7 103.5 42.8 20.43 5.25
LK-12-129 N051 -47 111 75.0 93.0 18.0 20.97 6.72
LK-12-130 N059 -45 156 31.5 43.4 11.9 20.48 6.17
61.5 72.0 10.5 21.19 6.92
117.2 153.2 36.1 12.98 5.39
LK-12-131 N099 -48 215 22.6 92.3 69.7 15.81 5.44
112.0 130.8 18.8 12.04 4.45
147.6 214.5 66.9 17.89 9.46
LK-12-131-B N099 -48 59 17.8 58.5 40.7 12.37 4.03
LK-12-132 N073 -46 116 60.7 74.1 13.4 16.25 5.12
80.2 108.3 28.1 20.20 7.12
LK-12-133 N090 -65 101 32.5 58.3 25.8 13.73 4.56
68.2 92.0 23.8 18.19 5.96
LK-12-134 N065 -46 118 36.3 87.0 50.7 18.53 5.13
LK-12-135 N087 -53 125 61.0 121.5 60.5 17.88 5.40
LK-12-141 N076 -45 77 38.7 73.8 35.1 13.98 3.61
LK-12-142 N080 -45 75 0.0 13.5 13.5 10.62 2.88
26.0 41.2 15.2 20.28 4.13
LK-12-143 N079 -47 120 11.0 25.0 14.0 17.09 3.80
84.8 92.1 7.3 17.05 6.50
LK-12-144 N080 -45 96 27.6 92.2 64.6 17.70 7.96
LK-12-145 N104 -49 90 59.4 74.0 14.6 18.16 6.50
LK-12-146 N077 -45 81 44.3 61.9 17.6 16.84 8.20
LK-12-147 N085 -45 60 12.4 55.2 42.8 17.59 8.50
LK-12-149 N084 -55 108 67.1 78.9 11.8 14.11 3.86
LK-12-150 N078 -45 89 46.5 59.2 12.7 18.94 3.43
LK-12-153 N074 -45 78 19.0 40.2 21.2 13.17 3.07
52.1 72.0 19.9 17.05 8.05
LK-12-154 N077 -45 59 21.1 28.6 7.5 17.26 7.88
LK-12-156 N077 -45 90 9.8 18.2 8.4 19.85 3.96
56.0 70.2 14.2 19.51 7.80
LK-12-157 N077 -45 81 26.3 36.5 10.2 11.22 3.16
54.8 67.4 12.6 19.73 7.14
LK-12-158 N075 -45 41 17.5 34.0 16.5 17.79 7.38
LK-12-159 N036 -45 44 23.6 39.9 16.3 16.38 8.40
LK-12-160 N259 -50 110 10.5 109.5 99.0 26.21 6.81
LK-12-161 N098 -64 131 37.6 60.9 23.3 15.86 5.88
80.9 88.9 8.0 12.69 7.47
LK-12-162 N076 -45 92 7.5 49.0 41.5 14.23 5.20
63.7 72.0 8.3 8.07 3.91
LK-12-163 N081 -50 156 7.6 24.8 17.2 18.49 6.45
49.5 63.8 14.3 13.48 4.81
82.8 115.5 32.7 11.09 4.86
123.3 140.6 17.3 11.89 9.05
LK-12-164 N059 -45 182 2.0 21.6 19.6 9.50 2.98
74.5 88.5 14.0 16.06 6.79
114.9 124.5 9.6 15.96 8.54
164.4 181.5 17.1 10.85 4.08
LK-12-165 N077 -45 131 29.5 55.5 26.0 9.46 3.43
108.0 122.6 14.6 5.74 3.06
** Significant Cgr intersections are expressed as core length because the host rocks are highly metamorphosed and locally migmatized and folded. However, the mineralization envelope interpreted from the historical data cross-cuts the drill holes at a high angle.
*** All core sample carbon analyses performed by COREM and delivered as graphitic carbon (Cgr), internal analytical code LSA-M-B10, LECO high frequency combustion method with infrared measurement.

The mineralization at Lac Knife is hosted in biotite-quartz-feldspar paragneiss and schist of the Nault Formation, in association with iron formations of the Wabush Formation. These are equivalent to the lower Proterozoic Labrador Trough rocks affected by the late Proterozoic Grenvillian orogeny. Metamorphism associated with the Grenvillian orogeny has resulted in the formation of economic grade concentrations of graphite dominated by value-enhanced large flakes.

The Lac Knife property comprises 57 map-designated claims covering 2,986.31 ha located in Esmanville Township (NTS map sheet 23B/11), 27 km south-southwest of the iron-mining town of Fermont, in the Côte-Nord administrative district of Québec. Focus acquired a 100% interest in the property in October 2010. Maps showing the location of the Lac Knife property as well as drill holes locations are available on the company’s website at www.focusgraphite.com.

2012 Infill and Deposit Margin Drill Program, Methodology and QA/QC

The summer 2012 infill and deposit margin drilling program at Lac Knife comprised 56 large diameter (PQ-sized, 4-inch) core holes for a total of 5,628 m. The drilling program was designed to map the limits of the Lac Knife graphite deposit and provide sufficient additional data and control on mineralisation to be useful for in a new resource estimate. The drilling was also designed to provide enough mineralised material for phase II metallurgical testing (see Focus’ press release dated March 4th) and for subsequent pilot plant trials.

The 2012 drilling campaign was managed by IOS Services Geoscientifiques (“IOS”) of Chicoutimi, Québec. The infill and deposit margin drilling program started on July 1st and ended on September 17th 2012. The drilling was performed by G4 Drilling of Val-d’Or, Québec under the supervision of IOS.

The 56 holes were spread over the western, central and eastern zones of the deposit (see drill holes location map available on the Company’s website at www.focusgraphite.com).

Two slabs of about 1/4 of the 4 inch diameter PQ core were sawed parallel on each side of the central axis of the core. One of the slabs was earmarked for geochemical analysis while the other slab was kept as a witness sample. Center parts of the core were used as graphite-bearing material for the phase II metallurgical testing and for the subsequent pilot plant testing program.

A total of 2,076 sub-sample slabs of the PQ drill core were collected from all 56 holes and shipped to IOS for sample preparation (crushing and grinding). Once prepared, the samples were sent to the Consortium de Recherche Appliquée en Traitement et Transformation des Substances Minérales (“COREM”), an ISO/IEC 17025:2005 certified facility in Québec-City, for graphitic carbon (Cgr) analysis using LECO high frequency combustion method with infrared measurement (internal analytical code LSA-M-B10 for graphitic carbon; ISO 9686:2004). For the measurement of graphitic carbon, the sample is pre-treated with nitric acid, placed in a LECO capsule and introduced in the furnace (1,380ºC) in an oxygen atmosphere. Carbon is oxidized to CO2. After the removal of moisture, gas (CO2) is measured by an infrared detector and a computerized system calculates the concentration of graphitic carbon (Cgr). Total sulphur was also analyzed by LECO (code LSA-M-B41) (Table 1). For sulphur determinations, the sample is placed in a LECO capsule and introduced in the furnace (1,380ºC) until sulphur is oxidized to SO2. After the removal of moisture, gas (SO2) is measured by an infrared detector and a computerized system calculates the concentration of total sulphur (%).

Under the QA/QC program, about 10% of the samples were analyzed by COREM for total (code LSA-M-B45), organic (code LSA-M-B58), inorganic (code LSA-M-B11) and graphitic (code LSA-M-B10) carbon as well as for total sulphur (a total of 191 core samples). Duplicates of the same 191 samples were also sent to ACTLABS Laboratories of Ancaster, Ontario (ISO/IEC 17025:2005 with CAN-P-1579) for graphitic carbon (code 5D – C Graphitic) and total sulphur (code 4F – S Combustion infrared detection) determinations and for 35 multi-element analysis using ICP methods (code 1E2 – Aqua Regia). IOS introduced 181 standards, 173 duplicates and 159 blank samples into the batch of core sample as part of the QA/QC program.

Summer 2013 Drilling Program

Focus is currently working on the design of a two-phase follow-up drilling program on the Lac Knife property for the summer of 2013. Phase I of this program will include additional infill drilling within the limits of the deposit defined by the NI 43-101 compliant mineral resource estimate (see Lac Knife PEA Technical Report available on Focus’ website or at www.sedar.com). Phase II will consist of an exploration drilling program in order to test geophysical anomalies identified during last fall’s ground magnetic and horizontal loop electromagnetic (HLEM) survey done by G.L. Géoservice Inc. and interpreted by Geophysique Camille St-Hilaire Inc., both located in Rouyn-Noranda.

About Focus Graphite

Focus Graphite Inc. is an emerging mid-tier junior mining development company, a technology solutions supplier and a business innovator. Focus is the owner of the Lac Knife graphite deposit located in the Côte-Nord region of northeastern Québec. The Lac Knife project hosts a NI 43-101 compliant Measured and Indicated mineral resource of 4.972 Mt grading 15.7% carbon as crystalline graphite with an additional Inferred mineral resource of 3.000 Mt grading 15.6% crystalline graphite. Focus’ goal is to assume an industry leadership position by becoming a low-cost producer of technology-grade graphite. On October 29th, 2012 the Company released the results of a Preliminary Economic Analysis (“PEA”) of the Lac Knife project which demonstrates that the project has an excellent potential to become a producer of graphite. As a technology-oriented enterprise with a view to building long-term, sustainable shareholder value, Focus invests in the development of graphene applications and patents through Grafoid Inc.

The technical information presented in this press release has been reviewed by Benoit Lafrance, Ph.D., géo (Québec), Focus Vice-President of Exploration and a Qualified Person under NI 43-101.

Forward Looking Statements – Disclaimer

This news release may contain forward looking statements, being statements which are not historical facts, and discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company’s expectations are in our documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com Focus Graphite disclaims any intention or obligation to revise or update such statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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Focus Graphite Reports Preliminary Phase II Locked Cycle Tests from Lac Knife Yield High Purity 96.6% C Flake Graphite

Posted by AGORACOM-JC at 10:15 AM on Monday, March 4th, 2013

OTTAWA, ONTARIO–(March 4, 2013) - Focus Graphite Inc. (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) (“Focus” or the “Corporation”) is pleased to report preliminary Phase II Locked Cycle Test* (LCT) results for its Lac Knife, Québec high-grade graphite deposit.

SGS Canada Inc. (“SGS”) has completed Phase II LCTs on four (4) composite core samples comprised of low-grade and semi-massive graphite with a head grade ranging between 6.0% C and 20.7% C. Highlights are as follows:

  • The average amount of graphite flake recovered from the core samples in the Phase II LCTs increased to 92.2% compared with a recovery of 84.7% graphite flake in the Phase I LCTs
  • The proportion of large flakes (+80 mesh) in the graphite concentrates ranged between 35% and 58%
  • The carbon content of graphite concentrates produced from the four (4) composites averaged 96.6 %C, including the fine flake fraction (-200 mesh), a 4.6% increase over Phase I LCTs completed in mid 2012

* A locked cycle test is a repetitive batch flotation test conducted to assess flow sheet design. It is the preferred method for arriving at a metallurgical projection from laboratory testing. The final cycles of the test are designed to simulate a continuous, stable flotation circuit.

All carbon analyses were performed by SGS and are reported as total carbon (C). The analytical methods that were used to determine the metallurgical results included double loss on ignition analysis (double LOI) and total carbon analysis by Leco on the final concentrates. The lower grade tailings products were analyzed by the graphitic carbon method to discount the organic carbon and carbonate carbon in the samples.

Final Phase II LCT results including for the two (2) composite core samples comprising of massive graphite are pending.

The findings from the Phase I and Phase II metallurgical testing program have been incorporated into the design of the flow sheet for the pilot plant scheduled for start-up in late March or early April,” said Dr. Joseph Doninger, Director of Manufacturing and Technology for Focus Graphite.

The purpose of the pilot plant is to confirm the results from Phase II LCTs, produce graphite flake samples for customer evaluations and generate graphite raw materials for further upgrading.

Focus President and CEO Gary Economo said “These latest results continue to confirm Lac Knife’s status as an exceptional flake graphite project.

“The very high carbon content of our fine (-200 mesh ) graphite flake could provide a low cost raw material that could be upgraded to the high purity carbon levels that lithium-ion battery manufacturers require.

It supports our technology focus on the lithium-ion battery market for transportation and energy applications,Mr. Economo said. “It allows us to assign the much higher-priced large flake to other high-technology projects.

Ultimately, it ends a misconception in the marketplace that only large flake graphite is suitable for battery-grade materials.”

These results will also allow Focus to advance its discussions with potential customers, Mr. Economo said.

About SGS Metallurgical Services (Lakefield)

SGS Canada Inc. (“SGS”) is recognized as a world leader in the development of flow sheets and pilot plant programs. SGS’ Metallurgical Services division was founded over half a century ago. Its metallurgists, hydrometallurgists and chemical engineers are experienced in all the major physical and chemical separation processes utilized in the recovery of metals and minerals contained in resource properties around the world.

About Focus Graphite

Focus Graphite Inc. is an emerging mid-tier junior mining development company, a technology solutions supplier and a business innovator. Focus is the owner of the Lac Knife graphite deposit located in the Côte-Nord region of northeastern Québec. The Lac Knife project hosts a NI 43-101 compliant Measured and Indicated mineral resource of 4.972 Mt grading 15.7% carbon as crystalline graphite with an additional Inferred mineral resource of 3.000 Mt grading 15.6% crystalline graphite. Focus’ goal is to assume an industry leadership position by becoming a low-cost producer of technology-grade graphite. On October 29th, 2012 the Company released the results of a Preliminary Economic Analysis (“PEA”) of the Lac Knife project which demonstrates that the project has robust economics* and excellent potential to become a profitable producer of graphite. As a technology-oriented enterprise with a view to building long-term, sustainable shareholder value, Focus invests in the development of graphene applications and patents through Grafoid Inc.

* Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The information pertaining to the metallurgical test program completed by SGS that is presented in this news release has been reviewed and approved by Mr. Oliver Peters, M.Sc., P.Eng, MBA, SGS Canada Inc. Consulting Metallurgist.

This news release has been reviewed by Mr. Marc-Andre Bernier, M.Sc., P.Geo. (Ontario and Québec), Focus Graphite Director and Technical Advisor and a Qualified Person under NI 43-101.

Forward Looking Statements – Disclaimer

This news release may contain forward looking statements, being statements which are not historical facts, and discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company’s expectations are in our documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com. Focus Graphite disclaims any intention or obligation to revise or update such statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

 

Focus Graphite Inc.
Mr. Gary Economo
President and Chief Executive Officer
613-691-1091, ext. 101
geconomo@focusgraphite.com
www.focusgraphite.com

Focus Graphite and SOQUEM Confirm the High Content of Critical Rare Earth Elements at Kwyjibo with 2.95% TREO and 1.44% Cu Over 10 m at Surface

Posted by AGORACOM-JC at 12:01 PM on Wednesday, February 6th, 2013

OTTAWA, ONTARIO–(Feb. 6, 2013) - Focus Graphite Inc. (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) (“Focus” or the “Corporation“) and partner SOQUEM Inc. (“SOQUEM”) are pleased to provide an update of their 2012 exploration program at the Kwyjibo polymetallic Iron-Rare Earth Elements-Copper-(Gold) (Fe-REE-Cu-(Au)) Property (“Kwyjibo” or the “Property”), located in the Côte-Nord administrative district of Québec. The 2012 exploration program at Kwyjibo comprised of surface showing and trench re-sampling, core drilling and ground geophysical surveying.
Highlights of the Josette showing and trench re-sampling program include:

  • Josette showing: 2.95% TREO, 37.35% REOc* and 1.44 % Cu over 10 m, including a high-grade sub-zone of: 4.59% TREO, 35.58 % REOc*, and 2.62 % Cu over 2m.
  • Trench TR-95-30: 4.13% TREO, 36.08% REOc* and 0.23 % Cu over 2 m.
  • Trench TR-95-29: 3.58% TREO, 39.90% REOc*and 0.17% Cu over 1.5 m.
*The ratio of critical rare earth elements (“REOc”) is defined by The U.S. Department of Energy (“DOE”) as the sum of Nd+Eu+Tb+Dy+Y oxides divided by total rare earth oxides (TREO) : REOc = ((Nd2O3+Eu2O3+Tb2O3+Dy2O3+Y2O3)/TREO)*100. The REOc ratio is the expression of the importance of those REEs sought by the industry without considering the technological challenge to recover the REE and all the costs related to a mine development.

The new 2012 analytical results highlight the increasing total rare earth content of the mineralization related to the assaying of heavy rare earth elements in comparison to the 1995 analytical results. In 1995, only La, Ce and Sm were analyzed out of the suite of 17 rare earth elements at the Josette showing and in trenches TR-95-30 and TR-95-29.

In 2012, 10 new channel samples were collected at the Josette showing, two new channel samples were collected from trench TR-95-30 and one chip sample was taken from trench TR-95-29. The 13 samples were analyzed for the complete range of rare earth elements (Table 1). The 2012 results confirm the high heavy rare-earth elements (“HREE”) content of the mineralization at Kwyjibo as well as the high ratio of critical rare earth elements (REOc) which ranges from 32.34% to 41.14%.

A map of the Kwyjibo property showing the location of Josette showing, trench TR-95-30 and trench TR-95-29 is available on the Company’s website at www.focusgraphite.com.

Table 1. Results of the re-sampling program at the Josette showing and at Trenches TR-95-30 and TR-95-29:

Sample Length TREO HREO REOc Nd2O3 Eu2O3 Tb2O3 Dy2O3 Y2O3 Fe2O3 P2O5 Cu F Mo Au
m % % % % % % % % % % % % ppm g/t
Josette showing
181151 1 3,55 33,37 41,14 0,518 0,013 0,019 0,117 0,794 69,30 4,50 0,66 1,43 283 0,02
181152 1 4,55 27,42 37,54 0,722 0,024 0,021 0,124 0,819 52,40 3,51 3,40 4,49 791 0,18
181153 1 4,64 22,43 33,63 0,729 0,019 0,016 0,099 0,695 43,30 2,95 1,84 7,33 2820 0,14
181154 1 2,79 29,81 39,56 0,440 0,008 0,012 0,077 0,569 65,60 3,55 1,22 2,04 227 0,08
181155 1 3,48 29,77 39,29 0,538 0,014 0,016 0,098 0,703 51,50 2,92 1,44 6,79 775 0,10
181156 1 1,99 32,13 40,65 0,296 0,005 0,009 0,059 0,440 69,50 3,24 1,19 2,43 136 0,08
181157 1 1,97 19,28 32,34 0,342 0,004 0,006 0,038 0,246 78,50 2,52 0,48 1,14 28 0,03
181158 1 1,99 26,45 36,83 0,312 0,008 0,008 0,050 0,353 53,00 1,99 1,67 5,10 217 0,15
181159 1 2,68 24,90 35,59 0,426 0,009 0,011 0,065 0,443 50,80 2,55 1,78 5,20 363 0,08
181160 1 1,86 26,58 36,97 0,301 0,006 0,008 0,049 0,325 70,90 2,46 0,76 1,75 23 0,07
Composite 10 2,95 27,21 37,35 0,462 0,011 0,013 0,077 0,539 60,48 3,02 1,44 3,77 566 0,09
Composite 2* 2 4,59 24,93 35,58 0,725 0,021 0,019 0,112 0,757 47,85 3,23 2,62 5,91 1805 0,16
TR-95-30
181163 1 5,49 21,34 34,06 0,956 0,016 0,019 0,114 0,765 58,30 4,31 0,18 1,44 151 n.a.
181164 1 2,78 26,92 38,11 0,472 0,009 0,012 0,074 0,491 66,60 4,27 0,28 0,96 40 n.a.
Composite 2 4,13 24,13 36,08 0,714 0,013 0,016 0,094 0,628 62,45 4,29 0,23 1,20 96 n.a.
TR-95-29
181166 1,5 3,58 29,30 39,90 0,611 0,012 0,017 0,105 0,683 66,80 4,86 0,17 0,79 16 n.a.
n.a. = not analyzed
(*) Composite of 2 meters from samples 181152 and 181153
TREO : Total rare earth oxides = La2O3+Ce2O3+Pr2O3+Nd2O3+Sm2O3+Eu2O3+Gd2O3+Tb2O3+Dy2O3+Ho2O3+Er2O3+Tm2O3+Lu2O3+Y2O3
HREO : Relative content (%) of heavy rare earth oxides = ((Tb2O3+Dy2O3+Ho2O3+Er2O3+Tm2O3+Lu2O3+Y2O3)/TREO)*100
REOc : Ratio of critical rare earth elements = ((Nd2O3+Eu2O3+Tb2O3+Dy2O3+Y2O3)/TREO)*100

The results of the rare earth elements assay program are expressed as total rare earth oxides (TREO), including yttrium oxide and ratio of critical rare earth elements (REOc*). Values of TREO (REE2O3) presented are the sum of all rare earth oxides of the lanthanide series and yttrium oxide; strictly not a rare earth element, yttrium is included in the total amount of REE because of the chemical behaviour and uses that are similar to the lanthanides.

The Josette showing was re-sampled in a composite of ten (10) one-meter long channels, cut parallel to the 1995 channels. For trench TR-95-30, a new two-meter long channel was cut parallel to the trench blasted in 1995 while for trench TR-95-29, chips samples were taken over 1.5 meters intervals. The total length of the 2012 sampling channels in both trenches (TR-95-29 & TR-95-30) is less than in 1995 by 5.4 m due to destruction of portions of the original outcrops caused by the blasting done in 1995, and also because of the subsequent infilling of the trenches by blocks of rocks and dirt and the strong weathering of the outcrop in trench TR-95-29.

Quality assurance / Quality control

The channels were cut with a rock saw perpendicular to the main foliation of the iron-rich rock (magnetitite). All the channels are one meter long by 2.5 cm wide and vary in depth from 10 to 15 cm. For each channel, the rock samples were broken into pieces and then placed into a plastic bag. In the case of Trench TR-95-29, chips samples of 5 to 10 cm long, by 5 to 10 cm wide and 1 to 5 cm thick were collected from the weathered outcrop over 1.5 m intervals and then placed into a plastic bag. A numbered tag from the ALS laboratory was inserted into the bag prior to the sealing of the bag with a tie-wrap. The sample bags were carried to the camp by helicopter then loaded onto a float plane to Sept-Îles and sent by a carrier to ALS Laboratories (“ALS”) in Val-d’Or (a certified laboratory; ISO 9001:2008 and ISO/IEC 17025:2005 for standards).

The samples were analyzed for all rare earth elements, most traces and major elements. Due to the limited number of channel samples analyzed, no standard or blank were introduced except the one used by the laboratory. Rare earths and trace elements were analyzed using lithium borate fusion of the sample prior to acid dissolution and analyzed by ICP-MS (Induced-Couples Plasma Mass Spectrometry). This method is best suitable for minerals resistant to acid digestion, like some REE-bearing silicates. For REE high grades samples, a re-analysis of the pulp was performed using high sample to volume ratios in addition to Class A volumetric glassware. ALS laboratory used certified high grade rare earth reference materials as part of their standard protocol. Major elements were analyzed using a lithium borate fusion of the sample prior to acid dissolution and analyzed by ICP-AES (Induced-Couples Plasma Atomic Emission Spectrometry). REE, traces and major elements were analyzed at ALS laboratories in Vancouver. For sulphide-bearing samples, copper, lead, silver, zinc and sulphur were digested in aqua regia, then analyzed by AAS technique (Atomic Absorption Spectrometry). Gold was analyzed by fire assay and AAS with a 50g nominal sample weight. Base metals and precious metals were analyzed at ALS in Val-d’Or.

2012 core drilling program

Thirty-one (31) holes (4,207 m) were drilled at Kwyjibo in 2012 with the aim of validating grades, thicknesses and continuity of the REE-Fe-Cu mineralization in the northeastern portion of the Josette horizon, where the best drilling intersections were obtained in 2011 from hole 10885-11-57 with 2.40% TREO over 48.8m and hole 10885-11-60 with 3.61% TREO over 33.1m (see Focus Metals press release dated March 13th 2012).

A map of the Kwyjibo property showing the location of the 31 drill holes is available on the Company’s website at www.focusgraphite.com.

A total of 1,333 samples (1,249 half NQ drill core samples; 23 duplicates; 29 standard samples and 32 blank samples) were sent to ALS in Val-d’Or and Vancouver, for total rare earth elements, base metals, major elements and trace element analysis. The results from the 2012 core drilling program are pending.

Surface and borehole TDEM geophysical surveys

A ground time-domain electromagnetic (“TDEM”) geophysical survey and a borehole Pulse-EM survey were completed by Abitibi Geophysic Inc. from Val-d’Or (Québec) in early October. A total of 75 km of lines were surveyed on five different loops that covered all significant VTEM anomalies from the 2006 survey and all known occurrences of the iron formation on the Kwyjibo Property.

Thirty (30) drill holes (5.492 m), were surveyed with borehole Pulse-EM on three loops. Eight (8) holes from the 1994 to 2011 core drilling programs were also surveyed for a total of 1,219 m for the most northeastern Grabuge – Gabriel showings loop. A total of 2,089 m from 11 drill holes (1994 to 2012) were surveyed on loop that straddled the Fluorine and Josette showings grids. Finally, 2,184 m from 11 holes (1995 to 2012) were surveyed in the loop that covers most of the Josette horizon and the Josette grid.

The new ground and borehole geophysical data are currently being processed and interpreted by MB Geosolution of Québec City. High-priority geophysical targets from the 2012 surveys will be followed-up though drilling in 2013.

Metallurgical tests and mineralogical study

A first round of metallurgical tests is planned at Kwyjibo this year. The testing will be performed on two representative samples of the mineralized iron formation (magnetitite) and the mineralized breccia in the aim to produce concentrates for critical rare earths, copper and iron. The first sample will be comprised of 80kg composite of mineralised rock from Josette showing. The second sample will consist of a 230kg composite from quarter-drill core samples from seven holes drilled below trenches TR-95-29 and TR-95-30. The contract to carry out the metallurgical testing has been awarded to COREM of Québec-City. In conjunction with the metallurgical testing, a mineralogical study will be undertaken in order to characterize the distribution of the REEs in the different REE-bearing minerals. Results from both studies are expected in the third quarter of 2013.

Property Location

The Kwyjibo polymetallic Iron-Rare Earth Elements-Copper-(Gold) (Fe-REE-Cu-(Au)) property, totalling 118 mining titles and covering 6,278 ha, is located 125 km northeast of Sept-Îles, in the Côte-Nord administrative district of Québec. The property is also located 25 km east of the Québec North Shore and Labrador railway line and is accessible by air from Sept-Îles.

Terms of the Agreement

On August 3, 2010, the Company announced the signing of an option agreement with SOQUEM Inc., a wholly-owned subsidiary of the Société générale de financement du Québec (“SGF”) (in April 2011, the SGF merged with Investissement Québec), to acquire a 50% interest in the Kwyjibo property.

Under the terms of the agreement, Focus could acquire a 50% interest in the Kwyjibo property, by spending up to $3 million in exploration work on the property over a period of 5 years of which $1 million had to be spent during the first 2 years. SOQUEM is the operator for the exploration work carried out on the property to date and Focus has the option to become the operator, by paying $50,000 in cash or issuing a block of common shares valued at $50,000. As of the year ended September 30, 2012 Focus had spent $3,244,173 on the Kwyjibo project (net of tax credits and mining duties) and has accordingly earned its 50% interest in the property.

About Focus Graphite

Focus Graphite Inc. is an emerging mid-tier junior mining development company, a technology solutions supplier and a business innovator. Focus is the owner of the Lac Knife graphite deposit located in the Côte-Nord region of northeastern Québec. The Lac Knife project hosts a NI 43-101 compliant Measured and Indicated mineral resource of 4.972 Mt grading 15.7% carbon as crystalline graphite with an additional Inferred mineral resource of 3.000 Mt grading 15.6% crystalline graphite. Focus’ goal is to assume an industry leadership position by becoming a low-cost producer of technology-grade graphite. On October 29th, 2012 the Company released the results of a Preliminary Economic Analysis (“PEA”) of the Lac Knife project which demonstrates that the project has robust economics and excellent potential to become a profitable producer of graphite. As a technology-oriented enterprise with a view to building long-term, sustainable shareholder value, Focus Graphite is also investing in the development of graphene applications and patents through Grafoid Inc.

About SOQUEM Inc.

SOQUEM Inc. is a wholly-owned subsidiary of Ressources Québec. Ressources Québec is a new Investissement Québec’s subsidiary, specializes in the mining and hydrocarbon industries; it will consolidate and spur government investment in projects carried out by mining companies and the hydrocarbon sector.

The technical information presented in this press release has been reviewed by Benoit Lafrance, Ph.D., Géo (Québec), Focus Vice-President of Exploration and a Qualified Person under National Instrument 43-101.

Forward Looking Statements – Disclaimer

This news release may contain forward looking statements, being statements which are not historical facts, and discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company’s expectations are in our documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com Focus Graphite disclaims any intention or obligation to revise or update such statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information