Agoracom Blog

Alabama Graphite Announces Preparation of Technical Report for Coosa Graphite Project

Posted by AGORACOM-JC at 10:20 AM on Tuesday, September 4th, 2012

Sep 04, 2012 — September 4, 2012 – VANCOUVER, BC, Canada – Alabama Graphite Corp. (the “Company”) (cnsx:ALP) announces the filing of a technical report titled “Technical Report, Coosa Graphite Project, Coosa County, Alabama, USA, dated August 31, 2012 with an effective date of August 22, 2012 (the “Technical Report”) prepared by Dana Durgin, a qualified person under National Instrument 43-101.

The Company’s Alabama subsidiary, Alabama Graphite Company, Inc. (the “Subsidiary”), leased the mining rights to the project area pursuant to a mining lease agreement and option dated August 1, 2012. The Subsidiary is also currently negotiating a surface access agreement with the holder of surface rights over the project area.

History of Graphite in Alabama

Graphite deposits were recognized in Alabama as early as before 1860. The first successful efforts to recover the graphite were in 1899 when the Allen Graphite Company started producing graphite using a patented oil flotation process. Disruption of foreign graphite supplies in World War I stimulated a graphite boom in Alabama. By 1918 there were 30 flotation plants operating in the district with a total production of 1918 of 7.8 million pounds (3.5 million kg) of graphite. Resumption of foreign trade after the war caused many of the plants to close, but three plants remained in service until 1929. All were closed by 1930.

The onset of World War II caused the Ceylon plant in Coosa County to re-open in 1939. It also prompted a study of the Alabama Graphite Belt by the US Bureau of Mines as a source of strategically important graphite. A field lab was established in Ashland and the Bureau of Mines studied 49 graphite deposits in 11 mining areas, including extensive mapping, trenching, sampling and some drilling of virtually all of the known deposits. By the end of the war, three mills were in operation. However at the war’s end, demand decreased and by 1950 there were only two mines still in operation, and both were closed in 1953. The Alabama Graphite Belt has been idle since that time. The recent upsurge of interest in graphite has prompted a renewed interest in the area. The acquisition of the Coosa Graphite property is one of the first new developments in this area.

The Coosa Graphite Project

The Coosa Graphite Property is located in Coosa County, Alabama, 60 air miles (96km) south-southeast of Birmingham and covers approximately 10 miles (16 kilometers) of strike length of graphitic schists, which includes several bands of graphitic schist in a zone up to 6 miles (9.6km) wide. An initial sampling program has been completed with positive results. The author of the Technical Report has visited the historic mines in the field, and has seen the graphitic schist exposures in roadcuts. The author of the Technical Report has reviewed the sampling and analytical protocols and found them to be satisfactory.

The distribution of the graphitic schists and the locations of higher grade areas within the Coosa Graphite Project are generally outlined on the available geologic maps but are poorly known in detail. The author of the Technical Report has recommended an airborne electromagnetic (EM) survey to define the locations and limits of the graphite-bearing schist units. It is expected that the EM survey will focus the subsequent exploration efforts on the most favorable areas.

The Property has a well-developed network of access roads built for timber management purposes. These provide exposures of the schists in roadcuts, which would otherwise be difficult to find. Some of these have been sampled, in less than 10% of the prospective area. A preliminary sampling program consisting of 113 channel samples returned an average of 4.28% total carbon. Previous analyses at the Coosa Graphite Project indicate that 97% of the carbon is in the form of graphite.

In addition to the geophysical survey, a program of backhoe trenching is being implemented to further expose the geology in the areas where the channel sampling indicated the more well-mineralized graphitic horizons. This work is expected to define drilling targets.

The recommended budget for the planned program for the exploration and development program at the Coosa Graphite Project is US$2,518,000.

Daniel Spine, President and Chief Executive Officer, states, “Alabama Graphite is proud to be leading the way in investigating the possible reawakening of Alabama as a major supplier of North American graphite. Our dealings with state and local officials have uniformly enthusiastic. We look forward to advancing the Coosa Graphite Project in an expedited fashion.”

Dana Durgin, AIPG Certified Professional Geologist #10364 and a Qualified Person as defined by National Instrument 43-101, and the author of the Technical Report and an independent consultant to the Company, has prepared or supervised the preparation of the information that forms the basis for the scientific and technical information contained in this press release.

In addition, further to the Company’s news release of August 31, 2012, the Company advises that it issued a total of 2,696,664 common shares (and not 2,696,667 common shares) pursuant to the private placement that closed on August 31, 2012.

About Alabama Graphite:

Alabama Graphite Corp., through its wholly-owned subsidiary, Alabama Graphite Company, Inc., is a graphite exploration and development company whose flagship project “The Coosa Graphite Project” in Coosa County, Alabama is located in an area with significant historical production of crystalline flake graphite. For further details go to .


Daniel Spine, President & CEO: (404) 661-6254

Investor Relations:

Bobby Mullins: (647) 341-7465 or (416) 317-4538

[email protected]


Forward-looking information

This release contains “forward-looking information” within the meaning of applicable Canadian securities legislation, including predictions, projections and forecasts. Forward-looking information includes, but are not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as the planned exploration work allowing for a focus of subsequent exploration efforts on the most favourable areas and the definition of drilling targets.

Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “planning”, “planned”, “expects” or “looking forward”, “does not expect”, “continues”, “scheduled”, “estimates”, “forecasts”, “intends”, “potential”, “anticipates”, “does not anticipate” or “belief” or describes a “goal” or variation of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.

Forward-looking information is based on a number of material factors and assumptions, including the result of exploration activities, that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for exploration is available as scheduled and does not incur unforeseen breakdowns, that no labour shortages or delays are incurred, that plant and equipment function as specified, that no unusual geological or technical problems occur, and that laboratory and other related services are available and perform as contracted. Forward-looking information involves known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of graphite; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the Company’s publicly filed documents. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.

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