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Northern Graphite Announces Positive Bankable Feasibility Study

Posted by AGORACOM-JC at 9:36 AM on Tuesday, July 10th, 2012

Study indicates robust operating margins and attractive economics

OTTAWA, ONTARIO–(July 9, 2012) – Northern Graphite Corporation (TSX VENTURE:NGC)(OTCQX:NGPHF) is pleased to announce the results of its bankable feasibility study (“FS”) for its 100% owned Bissett Creek graphite deposit. The FS was prepared by GMining Services Inc. and included contributions from SGS Canada Inc. (Lakefield-metallurgy and Geostat-resource modelling), Knight Piesold Ltd. (environmental, permitting, tailings management and road infrastructure) and Met-Chem Canada Inc. (process engineering). A conference call will be held at 9:00 am Eastern Standard Time, on July 10, 2012 to discuss the FS results (see details below). A National Instrument 43-101 technical report relating to the FS will be filed on SEDAR within 45 days of this news release.

Gregory Bowes, Chief Executive Officer, commented that: “The FS confirms the technical and financial viability of constructing and operating an open pit mine and a 2,300tpd processing plant on the Bissett Creek property and establishes Northern Graphite as an industry leader with a large flake, high purity, scalable deposit that is located close to infrastructure and has very competitive operating costs”. He added that “This is a conservative and realistic study that indicates the project has attractive economics and that there are a number of immediate, low risk opportunities to further enhance project returns.”
Table 1
Summary of Feasibility Study Results ($CDN- 1Q 2012)
Probable reserves (tonnes)         18,977,000t
Grade (graphitic carbon)         1.89     %
Waste to ore ratio         0.50
Processing rate         2,300tpd                 (92% availability)
Mine life         23 years
Mill recovery         94.7     %             (years 3 to 23)
Average annual production (tonnes of graphite concentrate @ 94.5% C)         18,600t                 (first five years)
Capital cost ($ millions)     $     102.9M                 (including $9.4M contingency)
Mine Cash Operating costs ($ per tonne of concentrate)     $     851/t                 (first five years)
Mine Cash Operating Costs ($ per tonne of concentrate)     $     968/t                 (mine life)
Mining costs ($ per tonne of ore)     $     5.79/t                 (mine life)
Processing costs ($ per tonne of ore)     $     9.60/t                 (mine life)
General and administrative costs ($ per tonne of ore)     $     2.94/t                 (mine life)
CDN/US dollar exchange rate         1.00

Graphite prices (US$ per tonne)     $     2,800             $     2,600         $     2,300         $     2,100
Pre tax Net Present Value @8% (CDN$ millions)     $     182.8             $     151.0         $     103.5         $     71.7
Pre tax IRR (%)         25.9     %             23.1     %         18.7     %         15.6     %
After tax Net Present Value @8% (CDN$ millions)     $     125.0             $     103.2         $     69.9         $     46.9
After tax IRR (%)         22.4     %             20.0     %         16.4     %         13.7     %

Prices of US$2,100 and US$2,600 per tonne of concentrate represent the 24 and 12 month weighted average price for the various sizes and grades of flake graphite that will be produced from the Bissett Creek deposit, based on prices quoted by Industrial Minerals Magazine. Prices of US$2,300/t and US$2,800/t represent the 24 and 12 month weighted average prices with the inclusion of a conservative 10% premium over +80 mesh large flake graphite prices for the +50 mesh (XL) and +32 mesh (XXL) flake components that will make up approximately 50% of Bissett Creek production. The Company believes that it will realize premiums in excess of 20% over the price of standard large flake graphite based on historical pricing for XL and XXL flake graphite.

Project Description

The proposed development of the Bissett Creek graphite deposit includes the construction of an open pit mine, a 2,300tpd flotation processing plant based on 92% availability, a natural gas fueled power generating plant and associated infrastructure. The processing plant will consist of conventional crushing, grinding and flotation circuits followed by concentrate drying and screening. The Company plans to build a natural gas pipeline to the site from the main Trans Canada line which is approximately 15 kms away. The natural gas will fuel five 1.0 MW-generators to produce electrical power and waste heat from the generators will be used to dry the concentrate. This will result in low overall energy costs. Infrastructure includes upgrading the last 5 kms of access road, site preparation, and building a non-acid generating tailings facility and a very small sulphide tailings facility. The processing plant will include sulphide flotation at the end of the circuit to remove enough sulphides to make approximately 97% of the tailings benign. After year 12 of operation, the sulphide tailings will be moved to the bottom of a mined out pit for permanent storage under water. Sulphide tailings and non-sulphide tailings will subsequently continue to be deposited in a mined out pit for the balance of the mine life which will result in a low final closure costs.

Resources and Reserves

Probable mining reserves for the Bissett Creek deposit were established based on indicated resources estimated as at September, 2011 by François Thibert, M.Sc. P. Geo. from SGS Canada Inc. (Geostat), an independent qualified person under NI 43-101, using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves, Definitions and Guidelines (see Table 2).
Table 2
Bissett Creek Flake Graphite Deposit
2011 Updated Mineral Resources (Diluted), September 2011
Indicated     Inferred
%Cg
Cut-off     Tonnage*
(metric tons)     Cg(%)
by LECO     In Situ
Graphite**
(metric tons)     Tonnage*
(metric tons)     Cg(%)
by LECO     In Situ
Graphite**
(metric tons)
0.986     25,983,000     1.81     470,300     55,038,000     1.57     864,100
1.227     24,588,000     1.85     454,900     50,472,000     1.62     817,600
1.50     19,954,000     1.99     397,100     33,672,000     1.81     609,500
1.75     16,031,000     2.34     375,100     21,417,000     2.21     473,300
2.0     11,921,000     2.50     298,000     14,584,000     2.37     345,600
Relative density 2.63t/m3, 10% dilution, 90% mine recovery, *rounded to nearest 1k, **rounded to nearest .1k
Mineral resources that are not mineral reserves do not have demonstrated economic viability

G Mining established a breakeven cut-off grade (“COG”) and ran optimized Whittle pits on the indicated resources based on a number of parameters including those outlined in Table 1. The final mine plan resulted in a probable reserve of 19.0 million tonnes of ore grading 1.89% graphitic carbon (“Cg”) based on a cut-off grade of 1.2% Cg. In order to increase head grades in the initial years of production while maintaining a reasonable stripping ratio, ore between 1.2% Cg and 1.6% Cg will be partially stockpiled and added to the mill feed at a later date. The mine plan was also designed to supply blasted rock and glacial till for tailings dam construction during pre-production and to allow for tailings disposal in mined out areas by year 13 for sulphide tailings and year 16 for non-sulphide tailings. A mining recovery factor of 90% and a dilution factor of 7.8% at a grade of 0.5% Cg were applied.

Metallurgy

SGS-Lakefield has completed the full suite of metallurgical tests on the Bissett Creek deposit including lab and bench scale work, a bulk sample/pilot plant test, and variability testing to ensure recoveries and flake size distribution are consistent across the deposit. A similar program was also carried out in the 1980s as part of a previous feasibility study (non NI 43-101 compliant) with consistent results.

The FS is largely based on pilot plant results from the processing of slightly weathered material that does not respond as well to flotation as unweathered rock. The locked cycle tests, which were performed on fresh drill core, were better in terms of recoveries, concentrate grades and flake size distribution which represents potential upside in the project.

The FS assumes recoveries of 92.7% in the first year of operation, 93.7% in year two and 94.7% over the balance of the project. Recoveries in the eight locked-cycle test averaged 97.2% and ranged from 95.2% to 99.1%.

The FS assumes an average concentrate grade of 94.5% compared to 94.9% in the locked-cycle tests. However, the locked cycle tests generated average grades of 98.1%, 97.0% and 95.1% for the important +32 (XXL), +50 (XL) and +80 (L) mesh size fractions respectively.

Based on pilot plant results, the FS assumes that production will consist of 18% +32 mesh at 95.1% C, 31% +50 mesh at 95.1% C, 28.2% +80 mesh at 94.5% C, 5% +100 mesh at 97.3% C, 7% +150 mesh at 98% C and 11% -150 mesh at 92.7% carbon.

Production

Over the first five full years of operation a total of 4.2 million tonnes of ore will be processed at an average head grade of 2.22% Cg to produce an average of 18,600 tonnes of graphite concentrate at 94.5% C per year. Over the 23 years of operations contemplated in the FS, the mine will produce an average of approximately 15,900 tonnes of graphite concentrate (94.5% C) per year which includes processing of the low grade stockpile.

Operating Costs

Over the first five years, cash mine operating costs will average CDN$851 per tonne of concentrate. Over the life of the project operating costs are estimated at $968 per tonne of concentrate. These estimates are based on operating costs per tonne of ore of $9.60 for processing, $2.94 for general and administrative costs and $5.79 for mining.

Capital Costs

The capital cost to construct the processing plant, power plant and all associated mine infrastructure is estimated at $93.5 million before contingency. The total capital cost, including a $9.4 million contingency, is $102.9 million (Table 3). In some instances the Company chose options that increased the capital cost but reduced operating costs and improved the overall project economics. In addition, the Company is required to post a financial assurance with the Province of Ontario to guarantee its obligations with respect to the Mine Closure Plan (“MCP”). The amount and timing of the financial assurance is currently being negotiated.
Table 3
Capital Costs ($CDN millions)

Power plant and pipeline     $     11.7
Infrastructure     $     9.3
Mobile equipment     $     1.7
Tailings and water management     $     6.7
Processing plant     $     39.9
EPCM and construction indirects     $     14.2
General services and other     $     5.8
Preproduction and commissioning     $     4.2
SUBTOTAL     $     93.5
Contingency     $     9.4
TOTAL     $     102.9

Sensitivities
Table 4
Project Sensitivities (Pre tax)
$2,800         $2,600         $2,300         $2,100
NPV*     IRR         NPV*     IRR         NPV*     IRR         NPV*     IRR
Base Case     $     182.8     25.9     %     $     151.0     23.1     %     $     103.5     18.7     %     $     71.7     15.6     %
Grade +10%     $     219.0     28.2     %     $     184.7     25.4     %     $     133.2     21.0     %     $     98.9     17.9     %
Operating costs -10%     $     198.0     27.2     %     $     166.2     24.4     %     $     118.7     20.1     %     $     86.9     17.1     %
Operating costs +10%     $     167.6     24.6     %     $     135.8     21.7     %     $     88.3     17.3     %     $     56.5     14.1     %
Capex -10%     $     193.0     28.5     %     $     161.3     25.5     %     $     113.7     20.8     %     $     82.0     17.5     %
Capex +10%     $     172.5     23.6     %     $     140.8     21.0     %     $     93.2     16.9     %     $     61.5     14.0     %
*$ millions @ 8%

Project Opportunities

It is the opinion of Northern Graphite management that a number of significant, low risk opportunities exist to improve upon the FS. A 10% increase in grade and a 10% reduction in operating costs for example, both of which management believes are achievable for the reasons outlined below, would increase the pre tax IRR by up to 20% and the NPV by up to 40%.

The final pit includes approximately 1.5 million tonnes of inferred resources grading 1.54% Cg which are treated as waste. The processing of this material would reduce the stripping ratio and mining costs and improve cash flows.
The mine plan does not consider inferred resources outside the pit where significant tonnages in excess of 2% Cg exist. Upgrading these resources to indicated and including them in a revised mine plan, instead of processing the low grade stockpile, would reduce costs, greatly extend the mine life, and further enhance the economics of the deposit. The Preliminary Economic Assessment on the Bissett Creek project states there is a relatively high probability that inferred resources can be upgraded due to the thick, flat lying and continuous nature of the mineralization in the Bissett Creek deposit. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Actual graphite production from the pilot plant was approximately 4% higher than indicated by the assayed head grade of the bulk sample while graphite production from eight locked cycle tests was approximately 12% higher than the assayed head grades. The bulk sample consisted of partially weathered near surface material which does not respond as well to flotation while the locked cycle tests were performed using fresh drill core. Therefore, the reserve grade is considered conservative and potentially understated. Further investigation of assay procedures and mineralogy is planned to explain the understatement but sufficient testing has been done for the Company to conclude that the performance of the mill will likely exceed levels used in the FS.
The FS assumed contract mining. It is highly likely the Company will buy and operate its own mining fleet. The incremental capital cost is approximately $7 million but with lease financing, and 20% down payment, the incremental financing requirement is approximately $1.4 million. Owner mining would reduce operating costs by approximately $50 per tonne of concentrate.
The Company expects to achieve 95% mill recoveries earlier than projected in the FS and ultimately to exceed the 95% level and to do better than the 92% mill utilization rate used in the FS.
The Company’s business plan is to significantly expand production in the future by incorporating inferred resources and to reduce unit costs below $800/tonne of concentrate. Inferred resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is therefore no certainty that the Company’s business plan in this regard will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
There is scope to reduce capital costs through the purchase of used equipment, lease financing of the natural gas generators, and additional permitting to provide access to lower cost tailings options.
The Company has successfully upgraded graphite concentrate from the Bissett Creek deposit for use in Lithium ion batteries and other high purity markets. Testing is ongoing and will assist the Company in defining the capital and operating costs associated with constructing an upgrading facility. No revenues or costs associated with upgrading and selling into value added markets are included in the FS. Industrial Minerals Magazine recently reported that spherical graphite used in Lithium ion batteries sells for US$6,000-8,000 per tonne.

Environmental, Permitting and Local Community

The Company expects to file its Mine Closure Plan (“MCP”) with the Ministry of Northern Development and Mines (“MNDM”) within three weeks. The MCP is a comprehensive document that describes in detail the scope of the project including the nature of mining and processing operations, buildings and infrastructure, potential effects on the environment, mitigation measures to protect the environment, a description of First Nation, government agency and local community consultation, and the Company’s plan to rehabilitate the site and return it to its natural state at the end of operations including an estimate of the cost of doing so. The Company is required to post a financial assurance to ensure that funds are available to complete the closure plan. The MNDM has 45 days to respond and the Company anticipates that acceptance and approval of the MCP will be received by the end of the third quarter of this year. Approval of the MCP will enable the Company to initiate construction and to apply for a number of other permits that relate to operations.

Qualified Persons

The FS was prepared in accordance with NI 43-101 standards by G Mining Services Inc. Louis Gignac, ing., Nicolas Ménard, ing., Antoine Champagne, ing., Ahmed Bouajila, ing., Robert Menard, ing., and Robert Marchand, ing. are the independent “qualified persons” under NI 43-101 who were responsible for preparing the FS on behalf of GMining Services Inc. The scientific and technical information in this press release has been reviewed and approved by Louis Gignac, ing., President of GMining Services Inc.

This press release has also been reviewed and approved by Don Baxter, P.Eng, President of the Company and a non-independent “Qualified Person” under NI 43-101.

Readers should refer to the NI 43-101 technical report relating to the FS for further details of the project development. The technical report will be filed on SEDAR (www.sedar.com) within 45 days of this news release in accordance with NI 43-101.

The Graphite Market

Graphite production and exports from China, which produces 70% of the world’s supply, are expected to decline and an export tax and a licensing system have been instituted. As a result, both the European Union and the United States have declared graphite a supply critical mineral and end users are actively seeking secure, alternative sources of quality supply.

Graphite demand and prices have increased substantially over the past few years due to the ongoing modernization of China and other emerging economies which has resulted in strong demand from traditional steel and automotive markets. In addition, new applications such as lithium ion batteries, vanadium redox batteries, fuel cells and nuclear power have the potential to create significant incremental demand growth. The manufacturing of Li ion batteries requires up to 30 times more graphite than lithium and their use in the growing EV/HEV market is expected to require significant increases in graphite production.

Northern Graphite Corporation

Northern Graphite Corporation is a Canadian company that has a 100% interest in the Bissett Creek graphite deposit located in eastern Ontario. Northern Graphite is well positioned to benefit from this compelling supply/demand dynamic with a high purity, large flake, scalable deposit that is located close to infrastructure. Additional information on Northern Graphite can be found under the Company’s profile on SEDAR at www.sedar.com and on the Company’s website at www.northerngraphite.com.

Conference Call

The Company has scheduled a conference call to discuss the FS at 9:00 a.m. Eastern Standard Time (EST) on Tuesday, July 10th 2012. Gregory Bowes, CEO, and Don Baxter P.Eng, President of Northern Graphite will host the call and invite analysts and investors to participate.

Time: 9:00 a.m. Eastern Standard Time

Dial in Number: 800 734 8507

This press release contains forward-looking statements, which can be identified by the use of statements that include words such as “could”, “potential”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “likely”, “will” or other similar words or phrases. These statements are only current predictions and are subject to known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from those anticipated by the forward-looking statements. The Company does not intend, and does not assume any obligation, to update forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by applicable securities laws. Readers should not place undue reliance on forward-looking 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

Gregory Bowes
CEO
(613) 241-9959

Don Baxter P.Eng
President
(705) 789-9706

Northern Graphite Signs Two Agreements for Further Spherical Graphite Testing

Posted by AGORACOM-JC at 10:33 AM on Monday, May 14th, 2012

OTTAWA, ONTARIO–(May 14, 2012) – Northern Graphite Corporation (TSX VENTURE:NGC)(OTCQX:NGPHF) is pleased to announce that it has engaged Hazen Research of Golden, Colorado and the National Research Council Canada (“NRC”) to continue testing and optimizing its process for manufacturing spherical graphite which is used to make the anodes in Lithium ion batteries.

Northern has developed a proprietary process for producing spherical graphite from the graphite concentrate that will be produced from the Company’s 100% owned Bissett Creek deposit. Northern’s spherical graphite has already been evaluated in Lithium/graphite battery test cells and the performance of these cells demonstrated that it meets or exceeds current commercial performance requirements and that Bissett Creek graphite does not contain any impurities that negatively affect cell performance.

Hazen Research has been retained to confirm laboratory results using bench scale models of commercial purification equipment that will be employed in the full scale process. It is anticipated that this program will be followed by a pilot plant test and then engineering and design work to define the capital and operating costs of a commercial facility to upgrade Bissett Creek graphite concentrate into spherical graphite.

The National Research Council of Canada has been engaged to carry out ongoing testing of Northern’s spherical graphite in Lithium/graphite batteries in order to optimize and customize its performance to meet the specifications of potential offtake and strategic partners and customers. NRC has advanced battery testing capabilities with various chemistries and is the Government of Canada’s premier organization for research and development.

Gregory Bowes, Chief Executive Officer, commented that: “Value added processing such as the manufacture of spherical graphite is a big part of Northern Graphite’s strategy to create value for shareholders.” He added that: “By developing our own process we can ensure that it is optimized for our production, we can develop our own intellectual property and we do not have to pay royalties to third parties.”

About Spherical Graphite

Spherical graphite is used to make the anodes in Li ion batteries and is manufactured from the flake concentrate produced by graphite mining operations. The upgrading process consists of micronizing the graphite flakes, rounding them to create a spherical or “potato” shape, and purifying them to increase the carbon content to 99.95%. Almost all spherical graphite is currently produced in China and purified using strong acids which results in large volumes of acidic and toxic waste. This method is not environmentally sustainable as the demand for, and production of, Li ion batteries increases. It is also inconsistent with the green energy objectives of the hybrid and all electric car industry. The high quality and purity of graphite from Bissett Creek has enabled the Company to develop a proprietary purification technology that is environmentally friendly and sustainable. The objective is to provide Li ion battery manufacturers with a stable, secure source of supply that is produced in an environmentally acceptable manner.

Don Baxter, P.Eng, President of the Company and a “Qualified Person” under 43-101, is responsible for and has reviewed and approved the technical content of this press release.

The Graphite Market

Graphite prices have increased substantially due to the ongoing modernization of China and other emerging economies which has resulted in strong demand from traditional steel and automotive markets. In addition, new applications such as lithium ion batteries, vanadium redox batteries, fuel cells and nuclear power have the potential to create significant incremental demand growth. The manufacturing of Li ion batteries requires up to 30 times more graphite than lithium and their use in the growing EV/HEV market is expected to require significant increases in graphite production. However, graphite production and exports from China, which produces 70% of the world’s supply, are expected to decline and an export tax and a licensing system have been instituted. As a result, both the European Union and the United States have declared graphite a supply critical mineral.

Northern Graphite Corporation

Northern Graphite Corporation is a Canadian company that has a 100% interest in the Bissett Creek graphite deposit located in eastern Ontario. Northern Graphite is well positioned to benefit from this compelling supply/demand dynamic with a high purity, large flake, scalable deposit that is located close to infrastructure. A bankable final Feasibility Study (“FS”) is expected to be completed before the end of the second quarter, 2012. Permitting is expected to be completed by the end of the summer following which mine construction can commence, subject to the results of the FS and financing. Additional information on Northern Graphite can be found under the Company’s profile on SEDAR at www.sedar.com and on the Company’s website at www.northerngraphite.com.

Hazen Research

Hazen Research, Inc. is an employee-owned firm, located in Golden, Colorado, that performs industrial research and development for clients in the mineral, chemical, energy, and environmental fields. Services include laboratory-scale research on new processes or the adaptation of known technology to new situations, followed by pilot plant demonstration, preliminary engineering, and cost analysis. Projects range from beaker- scale experiments and analyses to multimillion-dollar continuous pilot or demonstration plants. Hazen has developed hundreds of hydrometallurgical, pyrometallurgical, and mineral beneficiation processes for most commercial metals and industrial minerals, and for many inorganic chemicals and has been involved in over 10,000 projects.

This press release contains forward-looking statements, which can be identified by the use of statements that include words such as “could”, “potential”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “likely”, “will” or other similar words or phrases. These statements are only current predictions and are subject to known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from those anticipated by the forward-looking statements. The Company does not intend, and does not assume any obligation, to update forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by applicable securities laws. Readers should not place undue reliance on forward-looking 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

  • Northern Graphite Corporation
    Gregory Bowes
    CEO
    (613) 241-9959Northern Graphite Corporation
    Don Baxter P.Eng
    President
    (705) 789-9706
    www.northerngraphite.com

Graphite proving resilient in tough markets, constrained supply expected

Posted by AGORACOM-JC at 2:14 PM on Friday, May 4th, 2012
4th May 2012

JOHANNESBURG (miningweekly.com) – It would seem as if there is a new darling in the minerals market, as investor interest in graphite was seen rocketing over the past year.

From a total of about four listed companies making it their business to supply hungry markets with the carbon allotrope in 2011, the number of listed firms had increased to about 30, with most listings taking place since the beginning of the year.

Analyst Jeb Handwerger said that during the year, graphite had performed strongly, outpacing the generally depressed market.

“Graphite stocks have hit new highs and have recently pulled back, while gold and silver miners have hit two-year lows. This demonstrates excellent relative strength in an overall weak natural resource equity environment,” he said.

For example, AngloGold Ashanti, Africa’s biggest gold producer, fell 4.2% to R269.50 a share in April, the weakest in more than two years, while Gold Fields, the world’s fourth-biggest gold producer, dropped 5% to R100.73 a share during the same period. On Friday, silver miner Minera Atacocha, the Lima-based zinc and silver mining company, fell by 5.4%.

He expected global demand for graphite to increase exponentially from the current production of about 1.1-million tons over the next few years, possibly reaching 1.6-million tons in five years on the back of the rapid adoption of smart phones, laptops and hybrid-electric cars – all using lithium-ion batteries.

Lomiko Metals CEO Paul Gill also recently said demand for graphite was expected to rise as electric vehicles and lithium battery technology became more widespread and commonplace. Demand for graphite would also increase as new-generation nuclear reactors were being built in China, and if fuel cells and graphene patents became products.

Canadian supplier Northern Graphite CEO Greg Bowes believes people were starting to realize that it took far more graphite than lithium to make lithium-ion batteries and that graphite was, in fact, the supply critical material.

“However, graphite comprises a far larger market than lithium and it has a number of growing uses and new uses. It is not just dependent on the growth of electric vehicles to be successful,” he said.

However, Bowes believes that the story is not as rosy as some would have it.

He told Mining Weekly Online that although prices for the commodity have increased on the back of rising industrial demand, owing to the growth of developing economies and a tight supply from the world’s largest graphite supplier China, prices for the commodity remained largely flat.

“Owing to the economic slowdown in the US, Europe and China, prices had not seen significant increases in the past months. However, it has not declined and with renewed economic growth, will likely continue on an upward trend,” he said.

There is a phenomenal amount of renewed interest in graphite mining in Canada, after the industry had seen little activity for years, with numerous companies racing to be first in line to produce the sought-after flake graphite, prized for its extreme resistance to heat and high conductivity.

CONSTRAINED SUPPLY

However, there are not many new serious development-phase projects coming on-stream soon, with the last significant graphite mine built 30 year ago.

“There are not many graphite mines outside of China. Large economic deposits are rare and right now most operating mines in North America are small. We could see the need for 30 to 40 new graphite mines over the next decade,” Handwerger said.

Northern Graphite found itself among a handful of miners developing a high-quality graphite project, scheduled for production within the next year or so. The miner planned to open its Bissett Creek project, one of the first new graphite mines to open outside China since the 1990s by the end of 2013. A bankable feasibility study for the project, including a mine closeout plan was expected by June.

Ontario Graphite was also developing a graphite mine at its Kearney deposit, located in the same region as Northern Graphite’s Bisset Creek.

Another project – the only notable new project of any size, according to graphite analyst and blogger Dr Alex Cowie – that could be in production soon was the Almenara graphite project being undertaken by Magnesita, an unlisted company in Brazil.

“This could produce 40 000 t of graphite a year, increasing global production by 10%,” he said on Agoracom’s graphite blog.

Bowes pointed out that the new entrants to the market hold earlier-stage exploration projects and it would take many years to determine if they have anything, let alone get permits in place and build the mines – processes that could take years to complete.

However, he expected graphite prices to resume its rising trend when global economic recovery is achieved, leading to renewed demand for the commodity.

Edited by: Creamer Media Reporter
Source: http://www.miningweekly.com/article/graphite-proving-resilient-in-tough-markets-constrained-supply-expected-2012-05-04

Greg Bowes, CEO, Northern Graphite joins BNN to talk about his company and the Bisset graphite mine being developed

Posted by AGORACOM-JC at 12:37 PM on Friday, May 4th, 2012
Commodities : May 4, 2012 : Northern Graphite [05-04-12 11:50 AM]
Greg Bowes, CEO, Northern Graphite joins BNN to talk about his company and the Bisset graphite mine being developed in Ontario.

Northern Graphite plans to open Ontario mine next year

Posted by AGORACOM-JC at 10:57 AM on Thursday, May 3rd, 2012

If the timeline holds, Northern Graphite’s (TSXV:NGC) Bissett Creek Project will be one of the first graphite mines to open outside China since the 1990s. Bankable feasibility is scheduled for completion later this month, along with a mine closure plan. Assuming the latter is approved by the Ontario government, a year of construction will bring the project to fruition by the end of next year.

“From a mining and metallurgical point of view, the project has pretty well been de-risked,” CEO Gregory Bowes declares. “This thing had a full feasibility study done on it during the 1980s, so we’re effectively doing the second one, and all the results are consistent. So it’s low risk, technically.”

The new feas will bring firmer numbers, but a 2011 PEA projected a capex of $70 million to $80 million for an open pit producing 19,000 tonnes of graphite a year at a cash cost of $1,000 a tonne and a 40-year mine life. To put those figures in perspective, world graphite production is dropping to about one million tonnes a year while flake-graphite prices range from “at least $1,500/tonne at the lower end and $2,500/tonne for higher-end products, with higher purity and larger flake size,” according to an April 17 Industrial Minerals article by graphite authority Simon Moores.

 

At first glance, Bissett Creek’s in situ grade appears underwhelming. Using a 0.99% cutoff, the September 2011 resource estimate shows 25.98 million tonnes grading 1.81% carbon for 470,300 tonnes graphite indicated, and 55.04 million tonnes grading 1.57% C for 864,100 tonnes graphite inferred.

Bowes maintains, however, that the grade is more than compensated by “the high percentage of large flakes, the high purity, very low strip ratio, good infrastructure and the fact that our project is very scalable. We can increase production three to four times based on the resource we have now.”

He adds, “I think we’re the only graphite company that’s really completed the full suite of metallurgical testing, bulk sampling, pilot plant, all of that stuff and published the results. And I think they confirm that we have the best flake-size distribution in the industry and the highest carbon content of our graphite concentrate, so we will be producing the highest-price, premium-value product.”

Metallurgical tests released April 23 show average flake-size distribution and purity from eight locations on the deposit, including

  • 19.1% of concentrate produced +32-mesh flakes, 98.1% carbon
  • 33% of concentrate +50 mesh, 97% C
  • 23.3% of concentrate +80 mesh, 95.1% C
  • 5.2% of concentrate +100 mesh, 94% C
  • 10.5% of concentrate +200 mesh, 92.7% C

Coarse-flake sizes of +80, +50 and +32 mesh and carbon levels of 94% or better qualify for premium prices, the company states.

As feasibility progresses, the company has been working on a value-added component. Northern announced April 2 the successful manufacture of test quantities of spherical graphite, a product crucial to the battery technology that’s expected to power the future for digital devices and, especially, electric vehicles. “All lithium-ion batteries use spherical graphite, but only some graphite concentrate can be made into spherical graphite,” Bowes explains. Northern’s success led to a strategic cooperation agreement with Panacis Inc, a supplier of li-ion batteries to military, telecom, medical and renewable energy sectors.

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In February, Northern struck a cooperation agreement with Grafen Chemical Industries for graphene research. By supplying Grafen with +48-mesh and +32-mesh jumbo flake, Northern gets a 50% interest in North American patent rights to any products or processes developed by Grafen. As a graphite derivative, graphene is an R&D wonder that’s rollable, foldable, especially conductive and nearly transparent, despite being 200 times stronger than steel.

Bissett’s southeast Ontario location offers admirable infrastructure. “We are 15 kilometres from the Trans-Canada Highway, between Ottawa and North Bay, so we’re also 15 kilometres from the powerline and the natural gas pipeline,” Bowes reports. “We’re about 50 kilometres from nearby towns, so we don’t have to build a camp. We’re five hours by truck from the Port of Montreal. From there we can ship anywhere in the world. You can drive a transport truck from Toronto to the site in five hours.”

The project remains Northern’s sole interest. “Bissett Creek has enough resources that we can expand production three to four times in the future, if the demand is there. So why fiddle around with something else?”

A geologist, Bowes was Senior VP at Orezone Gold Corp (TSX:ORE), VP Corporate Development and later CFO for its predecessor, Orezone Resources, and President/CEO of San Anton Resource Corp. He’s also a director of Industrial Minerals Inc, the company that spawned Northern in the earliest days of the graphite exploration rush.

Among his colleagues is Northern President Don Baxter, who joined the company after five years as President of Ontario Graphite, which plans to reopen the Kearney Graphite Mine. Baxter worked there as Mine Superintendent and Chief Mine Engineer from 1990 to 1995. His background also includes stints with Inco and Noranda.

Technical Adviser George Hawley is a 40-year specialist in research, product development and market analysis for the industrial minerals sector.

Bowes will present a talk at OnPage Media’s May 2 Graphite Express-Conference in Toronto. “We are the leading graphite public story out there by a wide margin,” he says. “This is a supply-demand price story. The mine is very economic at current prices, and we believe the situation in China is going to get worse. So we think the outlook for prices is very positive.”

At press time, Northern Graphite had 46.4 million shares trading at $2.36 for a market cap of $109.5 million.

Disclaimer: Northern Graphite Corp is a client of OnPage Media, and the principals of OnPage Media may hold shares in Northern Graphite.

Read more articles like this at resourceclips.com.

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Source: http://business.financialpost.com/2012/05/02/northern-graphite-plans-to-open-ontario-mine-next-year/

Northern Graphite CEO Gregory Bowes on Ontario graphite property met results

Posted by AGORACOM-JC at 10:52 AM on Wednesday, April 25th, 2012

Northern Graphite Corp TSXV:NGC announced metallurgical test results from its Bissett Creek Graphite Project in eastern Ontario. Tests confirmed high recovery of large-flake, high-purity graphite consistently across the resource. The overall recovery from eight locked-cycle tests was 97%, and almost all concentrate will qualify for large-flake (+80 mesh), high-carbon (94%) pricing. Results showed 33% of the concentrate was +50 mesh, 97% C and 19% was +32 mesh, 98% C. Two of the locked cycle tests showed +32 mesh, 99% C.

Average results from eight locations on the deposit show

19.1% of concentrate +32 mesh, 98.1% carbon
33% of concentrate +50 mesh, 97% C
23.3% of concentrate +80 mesh, 95.1% C
5.2% of concentrate +100 mesh, 94% C
10.5% of concentrate +200 mesh, 92.7% C

CEO Gregory Bowes tells ResourceClips.com, “I think we’re the only graphite company that’s really completed the full suite of metallurgical testing, bulk sampling, pilot plant, all of that stuff and published the results. And I think they confirm that we have the best flake-size distribution in the industry and the highest carbon content of our graphite concentrate, so we will be producing the highest-price, premium-value product.

From a mining and metallurgical point of view, the project has pretty well been de-risked—Gregory Bowes

“We expect to complete our bankable feasibility in late May. I’m pretty sure we’ll file the mine closure plan in May as well. That is the comprehensive document describing how we’ll return the site to its natural state at the end. If that’s accepted by the government, we can start construction. It will take about one year to build the mine, so we hope to be in production before the end of 2013.”

As for infrastructure, “We are 15 kilometres from the Trans-Canada Highway, between Ottawa and North Bay, so we’re also 15 kilometres from the powerline and the natural gas pipeline. We’re about 50 kilometres from nearby towns, so we don’t have to build a camp. We’re five hours by truck from the port of Montreal. From there we can ship anywhere in the world. You can drive a transport truck from Toronto to the site in five hours. So you’re not dealing with the logistics of remote locations.

“From a mining and metallurgical point of view, the project has pretty well been de-risked,” he points out. “This thing had a full feasibility study done on it during the 1980s, so we’re effectively doing the second one, and all the results are consistent. So it’s low risk technically.”

View Company Profile

Contact:
Gregory Bowes
CEO
613.241.9959

or Don Baxter
President
705.789.9706

Disclaimer: Northern Graphite Corp is a client of OnPage Media and the principals of OnPage Media may hold shares in Northern Graphite.

by Greg Klein

Source: http://resourceclips.com/2012/04/25/northern-graphite-ceo-gregory-bowes-on-ontario-graphite-property-met-results/

Graphite: The Boom, China’s Bottleneck and the Exploration Crunch

Posted by AGORACOM-JC at 4:20 PM on Monday, April 23rd, 2012

COMMENTARY–ProspectingJournal.com–

In graphite very few can doubt the potential. When the metal first came into use its applications were widely restricted to lubricants and pencils. The impending boom of the auto industry in the 1960s then allowed it to tap into new markets, substantially widening graphite’s reach and economic value. Today, a similar pattern of technological innovation and ‘new industry’ is at work, promising an enormous appetite that is firmly rooted in graphite’s ever-expanding applications. There is much to be said about the metal’s distinct ability to remain sought after in ‘old’ industries whilst simultaneously enjoying a firm reliance amongst those of the 21st century. According to Simon Moores, graphite’s versatility is a result of its key properties. He noted, “it’s conductive; it’s a lubricant; it’s resistant to high temperatures and it’s a strong mineral”.

In graphite almost all the boxes are ticked and many within the industry are well aware of its potential. Kevin Puil, senior analyst for the Encompass Fund, exclaimed, “there is no substitute for graphite in many technologies, such as lithium-ion batteries. Between cell phones, tablets, laptops, hybrid and electric cars…the industry is growing at 25-30 percent annually.” And thus the growth of the hi-tech industry is commonly perceived as our 21st century equivalent to the 1960’s auto-industry boom. But where the potential is evident and the demand is insatiable, supply simply isn’t. The graphite industry, amongst the fastest growing, has recently seen the wind knocked off its sail because the world’s largest graphite producer is currently holding a very tight reign.

China currently accounts for about 70 percent of global graphite production and it has recently demonstrated a stance towards even greater protectionism. Jacob Securities’ Senior Mining and Metals Analyst, Luisa Moreno, stated, “China wants to better utilize its resources primarily for its own economic development…China, just as most nations, would like to be self-sufficient in key mineral resources”. Moreno then went on to exclaim, “I believe China is in a resource-preservation mode”. In reality there is little the rest of the world can do about it because in truth, nobody is going to fathom the power to bully the world’s second largest economy. China’s stance had led to several repercussions. For one, it has ensured that the price of graphite has grown considerably higher. Kevin Puil noted, “China definitely has a stranglehold on the global graphite supply…It’s 20 percent export duty, 17 percent valued added tax and export licensing system should further tighten supply and drive prices higher”. So on negative side, the graphite boom has come at a time when our primary supply has chosen to restrict its rare earth exports. On the plus side, it has prompted the rapid growth and expansion of juniors across the world.

A lot of these juniors have sprung up in Canada, companies of the likes of Northern Graphite Corp. (NGC:TSX: NGPHF:OTCQX). Northern Graphite currently holds 100 percent interest in its Bissett Creek deposit in Ontario. The deposit is conveniently located 17 kilometers from the Trans Canada Highway and boasts considerable infrastructure. This was reiterated by Kevin Puil, who noted, “its entire Bissett Creek deposit in Ontario is flake graphite…it has great infrastructure nearby, including power, gas roads and a small community”. According to Puil, flake graphite “is sought after for its applications in new technologies like lithium-ion batteries and solar panels”. As a result flake is more valuable than other types of graphite and fetches a higher price.

Last week, Northern Graphite announced it had formed a strategic partnership with Panacis, a company that makes battery systems in the telecommunications, defense and renewable energy industries. Northern’s chief executive, Gregory Bowes, stated, “Panacis has a great deal of knowledge and expertise with respect to the manufacture and testing of Lithium ion batteries and has established relationships with most manufacturers. This provides us with a very important window into the Lithium ion battery world”. Northern graphite has allowed itself to stand out, boasting flake graphite that is essential to many new industries and at the same time, tying down a partnership with a powerful buyer.

With China continuing to bottleneck short-term supply chains, juniors such as Northern have been provided with huge incentives and have spent considerable amounts in exploration and feasibility studies. They are still years away from production, but given their strong financial position, these companies look poised to capitalize. Strong demand, high prices and Chinese export restrictions are a proving a perfect formula for the success of today’s juniors.

–

Jason Staeck
ProspectingJournal.com

Source: http://www.prospectingjournal.com/graphite-the-boom-china%E2%80%99s-bottleneck-and-the-exploration-crunch042312/

Northern Graphite Reports Additional Metallurgical Test Results

Posted by AGORACOM-JC at 10:12 AM on Monday, April 23rd, 2012

Variability testing confirms large flake, high purity, high recovery throughout resource

OTTAWA, ONTARIO – Northern Graphite Corporation (TSX VENTURE:NGC)(OTCQX:NGPHF) is pleased to announce that variability testing has been completed on its Bissett Creek Project and has confirmed that the high recovery of large flake, high purity graphite is consistent across the entire resource. The overall recovery from eight Locked Cycle Tests (“LCT”) was 97% and almost all concentrate will qualify for large flake (+80 mesh), high carbon (94%) pricing. In fact, 33% of the concentrate was +50 mesh, 97% graphitic carbon (“Cg”) and 19% was +32 mesh, 98% Cg which are exceptional products that will attract premium pricing based on both flake size and carbon content. In two of the locked cycle tests the +32 mesh concentrate reached 99% Cg.

SGS Metallurgical Services (Lakefield) (“SGS”) performed the LCTs on representative drill core samples taken from a number of locations within the deposit to confirm that the recovery and flake size distribution were consistent throughout the resource. The eight LCT tests produced final concentrates which showed consistent flake size distribution and carbon content. The overall concentrate grade averaged 95% Cg with a 97% recovery. A concentrate which grades 94% Cg and has a flake size distribution of 80% greater than +80 mesh is the industry standard large flake product. Almost all Bissett Creek production meets this specification as 75% of the final concentrates were +80 mesh. Approximately 5% of the concentrate was +100 mesh, 94% Cg and 10% was +200 mesh, 93% Cg. Less than 9% was very small, -200 mesh flake grading 83% Cg. Concentrate smaller than -150 mesh and 90% Cg may not be salable unless it can be upgraded to +90% Cg which the Company believes it can achieve by recirculating the -200 mesh flake within the circuit.

Most significantly, 52% of the graphite concentrate produced was jumbo size, +50 mesh flake which averaged 97.4% Cg. Two of the tests produced +32 mesh flake at greater than 99 % Cg. No premium pricing was used in the Preliminary Economic Assessment and it will not be used in the bankable final Feasibility Study (“FS”).

Gregory Bowes, Chief Executive Officer, commented that: “We have now successfully completed the full suite of metallurgical testing, including lab and bench scale work, a bulk sample/pilot plant test and now variability testing, and believe it confirms Bissett Creek concentrates will have the best flake size distribution and the highest carbon content in the industry.” He added that: “With the FS scheduled for completion in May, 2012, Bissett Creek is one of the most advanced new graphite projects in the world.”

Concentrate Flake Size Distribution (%) and Graphitic Carbon (Cg) Grade (%)

Composite Recovery
%
+32
(%)
Cg
(%)
+50
(%)
Cg
(%)
+80
(%)
Cg
(%)
+100
(%)
Cg
(%)
+200
(%)
Cg
(%)
LG Pit #3 96.8 19.0 96.1 32.8 95.6 23.2 94.2 5.0 93.8 10.4 90.0
LG Pit #4 95.2 22.6 97.6 32.6 96.3 20.1 94.6 4.6 92.3 9.5 91.2
MG Pit #2 97.7 23.7 98.5 34.1 97.5 22.1 96.1 3.9 95.5 8.7 95.3
MG Pit #4 96.8 25.7 97.5 32.8 96.5 19.9 95.5 3.8 94.5 9.3 92.3
HG Pit #1 99.1 11.2 98.5 31.9 97.8 28.1 94.3 7.0 91.1 12.8 91.5
HG Pit #2 96.2 14.8 99.2 32.8 97.4 25.9 96.1 5.9 95.0 12.0 93.3
HG Pit #3 97.1 20.2 97.4 35.1 96.3 22.7 95.1 5.3 94.8 9.3 93.6
HG Pit #4 98.3 15.7 99.0 32.0 98.9 24.4 94.9 6.0 95.2 11.7 94.7
Average 97.1 19.1 98.1 33 97 23.3 95.1 5.2 94 10.5 92.7
Note: 8.9% of concentrate was -200 mesh at 83% Cg

Test work at SGS has been ongoing for the past year and a half and culminated in a pilot plant program in December 2011 which also demonstrated that over 50% of the recovered flake will be +50 mesh grading over 97% Cg. The overall carbon recovery in the LCT tests was 97.1% and indicate that with optimization, Pilot Plant recoveries of 90.5% to 94.5% can be increased to 95% in the full scale mill.

Don Baxter, P.Eng, President of the Company and a “Qualified Person” under 43-101, is responsible for and has reviewed and approved the technical content of this press release.

About SGS Metallurgical Services (Lakefield)

SGS Metallurgical Services is recognized as the world leader in the development of bankable flowsheets and pilot plant programs. SGS Metallurgical Services 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 orebodies around the world.

About Northern Graphite Corporation

Northern Graphite Corporation is a Canadian company that has a 100% interest in the Bissett Creek graphite project, located 17kms from the Trans Canada highway between Ottawa and North Bay, Ontario and close to infrastructure. A FS and Mine Closure Plan (“MCP”) are expected to be completed and filed in May, 2012. On acceptance of the MCP the Company will be in a position to initiate construction, subject to positive results from the FS and the availability of financing.

Graphite prices have increased substantially due to the ongoing modernization of China and other emerging economies which has resulted in strong demand from traditional steel and automotive markets. In addition, new applications such as lithium ion batteries, fuel cells and nuclear power have the potential to create significant incremental demand growth. It takes 20 to 30 times as much graphite as lithium to make a Li ion battery and their use in the growing EV/HEV market is expected to require significant increases in graphite production. However, graphite production and exports from China, which produces 70% of the world’s supply, are expected to decline and an export tax and a licensing system have been instituted. Both the European Union and the United States have declared graphite a supply critical mineral.

Northern Graphite is well positioned to benefit from this compelling supply/demand dynamic with a near term development project located in Canada. Additional information on Northern Graphite Corporation can be found under the Company’s profile on SEDAR at www.sedar.com and on the Company’s website at www.northerngraphite.com.

This press release contains forward-looking statements, which can be identified by the use of statements that include words such as “could”, “potential”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “likely”, “will” or other similar words or phrases. These statements are only current predictions and are subject to known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from those anticipated by the forward-looking statements. The Company does not intend, and does not assume any obligation, to update forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by applicable securities laws. Readers should not place undue reliance on forward-looking 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

  • Gregory Bowes, CEO
    (613) 241-9959Don Baxter P.Eng, President
    (705) 789-9706

Source: http://www.marketwire.com/press-release/northern-graphite-reports-additional-metallurgical-test-results-tsx-venture-ngc-1647222.htm

Northern Graphite Retains GMP Securities as Exclusive Financial Adviso

Posted by AGORACOM-JC at 8:45 AM on Monday, April 16th, 2012

OTTAWA, ONTARIO–(April 16, 2012) – Northern Graphite Corporation (TSX VENTURE:NGC)(OTCQX:NGPHF) (“Northern Graphite”, or the “Company”) is pleased to announce that it has retained GMP Securities L.P. (“GMP”) as its exclusive financial advisor with respect to evaluating strategic alternatives for financing the Company’s Bissett Creek graphite project. The Company expects to complete its bankable final feasibility study (“FS”) before the end of May, 2012, with permitting expected later in the summer.

Gregory Bowes, Chief Executive Officer of Northern Graphite commented that: “Completion of the bankable FS, permitting and project financing are the last steps prior to initiating construction in the fall and we are pleased to have GMP assisting us with this process.”

The Graphite Market

Graphite prices have increased substantially due to the growth of China and other emerging economies which has resulted in strong demand from traditional steel and automotive markets. In addition, new applications such as lithium ion batteries, vanadium redox batteries, fuel cells and nuclear power have the potential to create significant incremental demand growth. The manufacturing of Li ion batteries requires up to 30 times more graphite than lithium and their use in the growing EV/HEV market is expected to require significant increases in graphite production. However, graphite production and exports from China, which accounts for 70% of the world’s supply, are expected to decline and an export tax and a licensing system have been instituted. Both the European Union and the United States have declared graphite a supply critical mineral.

Northern Graphite Corporation

Northern Graphite Corporation is a Canadian company that has a 100% interest in the Bissett Creek graphite deposit located in eastern Ontario. Northern Graphite is well positioned to benefit from this compelling supply/demand dynamic with a high purity, large flake, scalable deposit that is located close to infrastructure. Additional information on Northern Graphite can be found under the Company’s profile on SEDAR at www.sedar.com and on the Company’s website at www.northerngraphite.com.

This press release contains forward-looking statements, which can be identified by the use of statements that include words such as “could”, “potential”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “likely”, “will” or other similar words or phrases. These statements are only current predictions and are subject to known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from those anticipated by the forward-looking statements. The Company does not intend, and does not assume any obligation, to update forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by applicable securities laws. Readers should not place undue reliance on forward-looking 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

 

Northern Graphite Corporation
Gregory Bowes, CEO
(613) 241-9959

Northern Graphite Corporation
Don Baxter P.Eng,
President
(705) 789-9706

Northern Graphite Announces Strategic Partnership With Panacis Inc.

Posted by AGORACOM-JC at 1:54 PM on Tuesday, April 10th, 2012

Companies to cooperate in developing and promoting Li ion battery related products

OTTAWA, ONTARIO–(April 10, 2012) – Northern Graphite Corporation (TSX VENTURE:NGC)(OTCQX:NGPHF) is pleased to announce that it has entered into a Strategic Cooperation Agreement with Panacis Inc. whereby the parties will assist in developing and promoting each other’s Canadian products and services with respect to Lithium ion batteries.

Panacis is an Ottawa, Ontario based company that is a global leader in intelligent, high performance Lithium Polymer battery based energy storage systems. It is a trusted supplier to the military, telecommunications, medical and renewable energy markets for mission critical applications where “off the shelf” commoditized solutions cannot compete. Panacis is familiar with most Li ion battery manufacturers, selects the best rechargeable battery technology for its applications and tunes its performance to meet demanding requirements. Panacis has comprehensive engineering capabilities that include battery systems engineering and integration expertise, power electronics, electromechanical design, rapid prototyping, and manufacturing and has over 20 patents/patents pending.

“Value added processing including the manufacturing of spherical graphite for the Li ion battery market is a big part of our strategy moving forward” said Gregory Bowes, Chief Executive Officer of Northern Graphite. “We have already successfully made and tested spherical graphite from the Bissett Creek deposit and want to establish ourselves as a secure, reliable supplier of a high quality, Canadian made spherical graphite that has been produced in an environmentally friendly manner. Panacis has a great deal of knowledge and expertise with respect to the manufacture and testing of Li ion batteries and has established relationships with most manufacturers. This provides us with a very important window into the Li ion battery world.”

Steve Carkner, Chief Technology Officer of Panacis commented that: “It is very important that we offer customers with sensitive and critical applications a secure, reliable Canadian made solution and it is to our advantage to encourage and promote the use of Canadian made spherical graphite in the Li ion batteries that we buy. We look forward to working with Northern Graphite to achieve this objective.”

The Graphite Market

Graphite prices have increased substantially due to the ongoing modernization of China and other emerging economies which has resulted in strong demand from traditional steel and automotive markets. In addition, new applications such as lithium ion batteries, vanadium redox batteries, fuel cells and nuclear power have the potential to create significant incremental demand growth. The manufacturing of Li ion batteries requires up to 30 times more graphite than lithium and their use in the growing EV/HEV market is expected to require significant increases in graphite production. However, graphite production and exports from China, which produces 70% of the world’s supply, are expected to decline and an export tax and a licensing system have been instituted. As a result, both the European Union and the United States have declared graphite a supply critical mineral.

Northern Graphite Corporation

Northern Graphite Corporation is a Canadian company that has a 100% interest in the Bissett Creek graphite deposit located in eastern Ontario. Northern Graphite is well positioned to benefit from this compelling supply/demand dynamic with a high purity, large flake, scalable deposit that is located close to infrastructure. A bankable Final Feasibility Study (“FS”) and permitting are expected to be completed in the first half of 2012, following which mine construction could commence, subject to the results of the FS and financing. Additional information on Northern Graphite can be found under the Company’s profile on SEDAR at www.sedar.com and on the Company’s website at www.northerngraphite.com.

Panacis Inc.

Panacis is a global developer and producer of safe, reliable and scalable battery systems for telecommunication, defense and renewable energy applications. Panacis uses smart energy management technology to provide flexible and clean power that turns energy storage into a viable and unique competitive advantage for our customers. Unlike conventional technologies, Panacis provides lighter, smarter and more efficient energy storage products with complete local and remote management capabilities. Our systems deliver a reduced total cost of ownership that is unsurpassed in the industry today. For more information, please visit www.panacis.com

This press release contains forward-looking statements, which can be identified by the use of statements that include words such as “could”, “potential”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “likely”, “will” or other similar words or phrases. These statements are only current predictions and are subject to known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from those anticipated by the forward-looking statements. The Company does not intend, and does not assume any obligation, to update forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by applicable securities laws. Readers should not place undue reliance on forward-looking 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

 

Northern Graphite Corporation
Gregory Bowes
CEO
(613) 241-9959

Northern Graphite Corporation
Don Baxter P.Eng
President
(705) 789-9706