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Zenyatta finds graphite while exploring Ontario for nickel-copper

Posted by AGORACOM-JC at 3:06 PM on Tuesday, March 27th, 2012

Zentatta Ventures

 

By Greg Klein

On completing its December 2010 IPO of $9.9 million, Zenyatta Ventures (TSXV:ZEN)began 2011 with big ambitions. The company set out to explore its Albany Project in northern Ontario, which may sit on a structure related to the Mid-Continent Rift, home of a number of significant deposits around Lake Superior. Zenyatta hoped for a nickel-copper-polymetallic deposit comparable to the Norilsk Nickel mine in Siberia, Vale‘s Voisey’s Bay operation in Labrador or Rio Tinto‘s Eagle deposit in Michigan. So far, that goal has proved elusive. But what the Albany Project (aka Arc of Fire) drill results do show, says President/CEO Aubrey Eveleigh, might be equally compelling — the possibility of an exceptionally large deposit containing the exceptionally unusual occurrence of vein-type graphite.

Vein (or lump) graphite is the rarest, hence most expensive, type of natural graphite. At the other end of the scale, amorphous graphite is the type most commonly found and is widely used for steelmaking, auto parts, sports equipment and other applications. Flake graphite is essential to the emerging markets that include solar panels, fuel cells, pebble-bed nuclear reactors and the lithium-ion batteries that are becoming standard for electronic devices and electric vehicles. But little is spoken of vein graphite — likely because there’s so little to speak of.

Currently the world’s supply depends on Sri Lanka, whose mines contain exceptionally pure graphite, often grading over 90%. The product transmits heat and electricity more efficiently than other graphite types and is easier to mould. As a result, it’s in high demand for specialized uses such as the electric brushes used in motors and generators and in powder metallurgy used to manufacture parts for industries that include the automotive, aerospace, energy and medical/dental sectors.

 

So how did Zenyatta’s aspirations turn from a Voisey’s Bay to a Sri Lankan-type target? “We flew our property with an airborne survey and got a very large conductor that measures 1,400 metres by 800 metres,” explains Eveleigh. “That’s a whopping conductor. We thought it was copper-and-nickel massive sulphides. It’s covered with swamp so we had to drill blindly. But we started to get this graphite-rich breccia zone. Basically, from top to bottom we were getting all this graphite. So it’s pretty large and pretty unique because it’s a hydrothermal graphite deposit unlike what anybody is promoting in North America right now. There is one in Sri Lanka that’s similar to it, and that’s a vein-type graphite.”

Results announced January 19 from one hole show eight separate breccia zones, the first starting at 79.8 metres and the last ending at 522 metres. The following assays were released.

  • 4.6% carbon over 9.9 metres
  • 4.2% over 67.5 metres
  • 3.3% over 7.9 metres
  • 2.5% over 48.2 metres
  • 3% over 26.4 metres
  • 4.2% over 5.5 metres
  • 2.1% over 7.5 metres
  • 3% over 16 metres

A mineralogical study at Lakehead University found graphite ranging from fine (-270 mesh) to coarse (+40 mesh). The next step is bench-scale testing to better determine the deposit’s purity, flake-size distribution and recoverability. Results from SGS Canada are expected within two to four months.

“This could be exceptional; it could be very valuable; and certainly the market is bullish on graphite right now,” says Eveleigh.

Meanwhile, drilling will resume presently. “We need to determine the size of it. If we judge by the airborne conductor, it looks pretty big, but you still have to prove that. So we’re stepping out quite a ways, like 200-metre step-outs. If it’s still there, we can extrapolate in between and say this looks like a pretty big deposit. If it’s as big as the conductor suggests, it will be one of the biggest graphite deposits in the world.”

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About 4,000 metres of drilling is planned. And the company’s still looking for that big nickel-copper find in its 121,000-hectare Albany Project. “We have 28 different claim blocks,” Eveleigh points out. “We found the graphite on one block and we’re advancing that, but we’re also exploring the other 27 blocks.”

The graphite deposit has “good access and good infrastructure,” he adds. It sits four kilometres from an all-weather logging road, 30 from the Trans-Canada Highway and 70 from a rail line.

As a geologist, Eveleigh’s career began with Noranda and includes a seven-year stint as a partner in a consulting firm that worked for around 50 juniors and majors. He also held a highly successful position with Wolfden Resources and is currently president of Eveleigh Geological Consulting, which has provided expertise for companies including Rio Tinto, Goldcorp (TSX:G), Agnico-Eagle (TSX:AEM), Diavik Diamond Mines andBHP Billiton.

Zenyatta’s team includes Barry Allan, an exploration geologist turned Senior Mining Analyst for Mackie Research Capital, and Cliff Davis, who boasts over 40 years’ experience in open-pit and underground mining. Brian Davey, a member of the Moose Cree First Nation, has 28 years’ experience in issues mostly related to First Nations economic development. Some other management and advisory staff include Don Bubar, president of Avalon Rare Metals (TSX:AVL) and Roland Butler, co-founder of Altius Minerals (TSX:ALS), which holds a 10% interest in a 3% Voisey’s Bay net smelter royalty.

The company has an 80% earn-in option with Cliffs Natural Resources (CLF), which calls for $10 million of spending over four years. Zenyatta has already earned 25% by completing its airborne survey. Cliffs holds 11.8% of Zenyatta’s shares.

“Cliffs also helps with technical support, so we’re moving this along together,” Eveleigh says. “They obviously like these projects, and they’re very supportive of us.”

Insiders hold 23.5% of Zenyatta shares while another 35% is institutional. At press time Zenyatta had 39.6 million shares trading at $0.15 for a market cap of $5.9 million.

Eveleigh will make a presentation at OnPage Media’s May 2 Graphite Express-Conference at Toronto’s Sheraton Hotel. Click here  for free registration.

Read more articles like this at resourceclips.com .

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Rare Earth Metals Growth Drivers: Siddharth Rajeev

Posted by AGORACOM-JC at 1:30 PM on Tuesday, March 27th, 2012

With so many moving variables in the rare earth space, how can investors evaluate investment opportunities? Siddharth Rajeev of Fundamental Research Corp. finds his top prospects by zeroing in on a specific material and tracking its growth drivers. Rajeev argues that critical materials used in viable new technologies will see increasing demand. In this exclusive interview with The Critical Metals Report, he explains how lithium-ion battery development and the forthcoming WTO ruling effect his outlook for graphite and niobium.

COMPANIES MENTIONED: COMMERCE RESOURCES CORP. – FLINDERS RESOURCES LTD. - FOCUS METALS INC. – GREAT WESTERN MINERALS GROUP LTD. - LOMIKO METALS INC. – LYNAS CORP. – MOLYCORP INC. - QUANTUM RARE EARTH DEVELOPMENTS CORP.

The Critical Metals Report: China recently announced it is maintaining its rare earth export quotas of 31,130 metric tons (t), but the U.S., the EU and Japan filed a claim at the World Trade Organization (WTO), saying that the restrictions are illegal. What will this controversy mean for rare earth prices?

Siddharth Rajeev: One of the main reasons for the run-up in rare earth prices is the export quotas set by China, which controls 97–98% of the supply. End users started looking for alternatives to rare earths, which is resulting in lower demand. As for the WTO case regarding China’s export quotas, Chinese officials think they are in line with WTO regulations. The WTO had previously ruled against China for restricting exports of bauxite, magnesium, zinc, etc., so it is possible the WTO might go against China here as well, which would negatively impact rare earth prices. In addition, companies outside China are now nearing production, including Molycorp Inc. (MCP:NYSE), Great Western Minerals Group Ltd. (GWG:TSX.V; GWMGF:OTCQX) in South Africa and Australia’s Lynas Corp. (LYC:ASX), may alleviate supply constraints, thus driving prices down. Still more projects are expected to come online in the next two years, which would further add to supply.

TCMR: When do you expect the WTO to decide on a ruling?

SR: It’s going to be a long process, but it’s something that could potentially affect long-term rather than short-term prices.

TCMR: Because rare earth materials are so varied, you use a fair-value metric instead of target prices when you evaluate these stocks. But how do you determine the intrinsic value of a critical metal stock when there is all of this uncertainty?

SR: Every commodity is priced based on expected long-term demand and supply. To forecast commodity prices, we project long-term demand based on the potential growth of the major demand drivers. Supply is projected based on the projects that may come onstream over the next 10 years. But as you mentioned, the forecast demand for critical elements is harder than, say, forecasting demand for copper or zinc. Demand for critical elements can be a moving target. We mitigate this problem by constantly updating our models to capture this variable. For example, major lithium demand drivers are expected to be lithium-ion batteries. Precisely forecasting demand for lithium-ion batteries depends on other growth drivers, such as electric vehicle proliferation. So we constantly update our models as to reflect projected demand in related sectors. That’s how we calculate price forecasts for all the commodities in the rare earth and critical metals space.

TCMR: You recently released a report on graphite and its uses for everything from brake linings to batteries and nuclear power. Graphite prices have jumped as much as $500/t in the last year for certain grades. How high could that price go, and what’s driving that?

SR: Over the long term, we are bullish on graphite. The main reasons are the following: First, we think the main demand growth drivers of graphite could be new applications, such as lithium-ion batteries, fuel cells and nuclear power. Natural graphite might take away a significant market share from the synthetic graphite market, because high-purity, high-grade graphite is required for these technological developments. Synthetic graphite currently trades at four to six times the price of natural graphite.

Second, on the supply side, China accounts for more than 70% of production. The U.S. imports its entire graphite consumption. So, again, we are seeing a highly concentrated supply in one area. Another thing, the blue-sky potential for graphite involves a product called graphene, which is made by chemically processing graphite. Graphene is very unique because it’s highly flexible, like rubber, yet stronger than steel, and it’s a very good conductor of heat, 10 times more effective than copper. It’s a recent technology and there is a lot of research going on in the sector. All things considered, we have a bullish outlook on graphite.

TCMR: What companies outside of China are you watching in this space?

SR: We’ll be initiating coverage on Focus Metals Inc. (FMS:TSX.V) in the next month or so. Its project, which it acquired from IAMGOLD Corp. (IMG:TSX; IAG:NYSE) in 2010, is located in Quebec. I have not seen any other project with such high grades of graphite in the deposit. Focus Metals has a grade of 16%, whereas most of the graphite deposits out there are less than 3%. It has large-flake material, which is highly in demand for applications such as lithium-ion batteries. Focus Metals recently completed a resource estimate. It’s working on a scoping study now. It’s a low-capital expenditure project, less than $75 million (M). The company has an extremely strong cash position, $16M. Market cap is just over $80M.

Another story we like is Flinders Resources Ltd. (FDR:TSX.V), a brand-new company. It started trading on the Toronto Stock Exchange Venture a few weeks ago. Its project is the Kringel project. A lot of historic work has been done on the project. It has a historical resource of 7 million tons (Mt) at 9% graphite, which is a high-grade material. It has a lot of catalysts coming up over the next 12 months, one of the biggest being its plans to convert the historic resource to an NI 43-101-compliant resource. It has a fully permitted mine that can be put into production in the next 18–24 months. It has a strong cash position of $5M, and its market cap is $60M.

Another company is Lomiko Metals Inc. (LMR:TSX.V). It’s a very early-stage project. It just acquired a project in Quebec. Some historic work has been done on the property. As for near-term catalysts, it is working on an NI 43-101 technical report [released 3/27/12], and it is going to commence an exploration program on the property.

TCMR: Lomiko is historically a gold company that just diversified into the graphite space. Is that common? Are a lot of companies following suit?

SR: Because of graphite’s highly attractive fundamentals and growing investor interest, we have been seeing a lot of new companies pop up or switch their focus to graphite, which is normal in the commodities sector. We saw the same pattern a few years ago when the rare earth boom started. The same has been the case with lithium. This is common, but bear in mind that a lot of companies might not survive the boom period.

TCMR: Do you see Lomiko’s stock going up because of the diversification?

SR: Our last report on Lomiko’s graphite came out a few months ago. The stock had doubled since the initial report. It’s dropped since then. As long as the graphite market stays in its current space, where I expect it to stay for a while, and if Lomiko’s exploration program produces positive results, that should reflect in the stock price. In other words, it’s too early to tell.

TCMR: You also focus on niobium, which is used in the technology, aviation and steel industries to make metals lighter and stronger. The price for ferro-niobium has come down from more than $46/kilogram (kg) to about $43. Is that a function of more supply or less demand?

SR: Niobium demand is highly correlated with steel demand, and steel demand is highly correlated with global gross domestic product (GDP) growth. The recent slowdown in global GDP growth, especially from China, has resulted in a softening of prices for commodities that service the steel industry.

TCMR: How does that price action affect your outlook for niobium suppliers, particularly in North America?

SR: The U.S. produces very little niobium. That’s been the case for a long time. Brazil is the number-one producer of niobium, accounting for about 92% of global production. Canada comes in a far second. We cover two North American companies in the space. The first is Quantum Rare Earth Developments Corp. (QRE:TSX.V; BR3:FSE; QREDF:OTCBB). It has the Elk Creek project in Nebraska, of which it owns 100%. In March 2011, it came up with an Inferred resource of 80 Mt at 0.62% niobium oxide, which is a significant deposit. This company has quite a few catalysts expected this year. In Q112, it expects a new NI 43-101 resource report, and in Q212 it expects some results of its metallurgical testing. These two numbers should give it enough information to commence a preliminary economic assessment (PEA) later this year.

TCMR: If those reports come out positive, could that override any niobium price challenges?

SR: Definitely.

TCMR: What other companies do you follow in that space?

SR: Another company is Commerce Resources Corp. (CCE:TSX.V; D7H:FSE; CMRZF:OTCQX). It has the Tantalum niobium project in British Columbia. It recently completed a PEA of the property, but its main asset now is its rare earth project in Quebec, which has produced a lot of positive news for the last 6 to 12 months. It recently came out with a huge increase in its resource estimate, and its initial estimate was one of the largest outside of China. The newer resource has doubled the figures, so that’s a significant development. It identified middle rare earths (MREEs) and heavy rare earths (HREEs), which are more valuable than light rare earths (LREEs),close to the surface of the property.

TCMR: Are the price dynamics different for HREEs and LREEs due to respective export quotas?

SR: Yes, exactly. Prices of light and abundant rare earths dropped much more than other rare earths that are more scarcely available. So there’s been a wide fluctuation, and different commodities in the rare earth sector have reacted differently. But overall, the rare earth market has been hit significantly in the last 6 to 12 months.

TCMR: Commerce has, as you mentioned, both MREEs and HREEs. Do you expect those prices to remain high or perhaps escalate?

SR: Overall, we saw significant price increases in the rare earth market, increasing as much as five- or tenfold in some cases over the last few years. We’ve since seen sort of a correction. But even at these relatively lower prices, a lot of projects are economic. So we wouldn’t need to see an increase in prices to make these companies look favorable.

TCMR: What other factors might impact this sector, particularly in an election year, that investors should take into consideration when considering critical metals companies?

SR: Global economic growth and price levels of critical metals are not directly linked. Critical metals are more influenced by new technologies. Any commodity that can be used for viable and efficient new technologies is going to see good growth and demand. This would include commodities like lithium and graphite, which are used in lithium-ion batteries. We have a strong outlook on lithium-ion batteries for electric cars. Those are the kinds of technologies that can be viable in the long run, and all the associated technologies are likewise going to see a significant increase in demand. Critical materials that figure into these developments will be less affected by shorter-term developments like the U.S. presidential election or a slowdown in the Chinese economy because many of these new technologies have a lot of room for upside, even before demand stabilizes.

Thank you for speaking with us today.

SR: My pleasure.

Siddharth Rajeev is vice president and head of research at Fundamental Research Corp., the largest independent equity research firm in Canada. He holds a bachelor of technology in electronics engineering from the Cochin University of Science & Technology and a Masters of Business Administration in finance from the University of British Columbia. He is also a CFA charter holder. He is ranked as a four-star analyst in the energy and mining sectors by Deutsche Asset Management.

Want to read more exclusive Critical Metals Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators and learn more about critical metals companies, visit our Critical Metals Report page.

DISCLOSURE:
1) JT Long of The Critical Metals Report conducted this interview. She personally and/or her family own shares of the following companies mentioned in this interview: None.
2) The following companies mentioned in the interview are sponsors of The Critical Metals Report:Focus Metals Inc., Lomiko Metals Inc., Quantum Rare Earth Developments Corp. and Commerce Resources Corp. Streetwise Reports does not accept stock in exchange for services.
3) Siddharth Rajeev: I personally and/or my family own shares of the following companies mentioned in this interview: None. I personally and/or my family am paid by the following companies mentioned in this interview: None. I was not paid to do this interview. FRC has been paid by some companies mentioned in this article to initiate coverage.

Source: http://www.theaureport.com/pub/na/12926

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AGORACOM Client Feature (MIS: CNSX) – Past Producer, NI 43-101 Report in progress

Posted by AGORACOM-JC at 11:18 AM on Tuesday, March 27th, 2012

The Omega Gold Property is located in Larder Lake, Ontario approximately 18 miles east of Kirkland Lake, and 4 miles west of Kerr Addison a former mine that produced in excess of 10 million ounces of gold. The Omega Property and Kerr Addison both are situated on the Larder Lake Cadillac fault system. This system has produced over 40 million ounces of gold just in the Kirkland/Larder Lake area and is still a productive wealthy mining camp.

Drilling highlights

·OM-12-67:1.787 g/t gold over 16 metres (including 2 metres of 5.84 g/t gold)

·OM-12-69:2.687 g/t gold over 12 metres (including 8 metres of 3.706 g/t gold)

·OM-12-70:0.997 g/t gold over 54 metres (including 10 metres of 2.421 g/t gold: Open Pit)

To date Mistango has drilled a total of 76 holes comprising of 21,478.9 metres. Infill drilling is continuing with three drills to establish a resource to 100 metres depth in the proposed open pit area and as well as potential below this level for an expanded open pit.

OTHER PROPERTIES IN KIRKLAND LAKE

 

Kirkland West

7 km of the Kirkland Larder Lake fault zones cross this property. One past producer (Baldwin Mine)

 

Sackville Property, VMS/Gold Thunder Bay

Sackville Property, High Grade boulders found containing Zinc, Gold and Silver. Work is ongoing. 43-101 report available. We continue to search for the source of the High Grade VMS boulders. An exploration program was completed in summer 2010. An Intense Geochemical survey followed by drilling is to be completed by 2011 year end.

 

Casa Berardi, VMS/Gold Quebec

Large land holdings covering the Casa Berardi fault zone. Several low grade gold zones located to date. The potential of the property has a historical background with producing mines nearby. Due to the terrain exploration on this property will be carried out during the winter.

IR Hub / Discussion Forum

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Lomiko Releases 43-101 Technical Report On The Quatre Milles Graphite Property

Posted by AGORACOM-JC at 10:09 AM on Tuesday, March 27th, 2012

Lomiko Metals Inc. (TSX-V: LMR; OTC: LMRMF; FSE: DH8B, Europe: ISIN: CA54163Q1028, WKN: A0Q9W7) is pleased to announce that its 43-101 compliant report by Consul-Teck Exploration Services regarding the Quatre Milles Flake Graphite Property located in southwestern Quebec has been accepted by the TSX-Venture Exchange and has thus been filed with Sedar (Canadian Securities Administrators).

Lomiko recently optioned the Quatre Milles Graphite Property in Quebec to search for large flake, crystallite graphite which is sought after for use in electric cars, fuel cells, pebble-bed nuclear reactors and to create graphene, a newly discovered, chicken-wire shaped formation of carbon which is one-atom thick and has incredible properties that can make it 200 times stronger than steel, a superconductor at room temperature and heat-resistant. Research scientists world-wide are experimenting with new technology that uses graphene and at least 25 new patents have been filed.

Lomiko’s Quatre Milles Graphite Property

The Quatre Milles Property is road accessible and is located approximately 175 km northwest of Montreal and 17 km due north of the village of Sainte-Veronique, Quebec. The property consists of 28 contiguous claims totaling approximately 1,600 hectares.

The property was originally staked and explored by Graphicor Resources Inc. (“Graphicor”) in the summer of 1989 based on the results of a regional helicopter-borne EM survey. The underlying geology consists of intercalated biotite gneiss, biotite feldspar gneiss, marble, quartzite and calc-silicate lithologies of the Central Metasedimentary Belt of the Grenville Province.

Historical Highlights

-Graphicor completed reconnaissance mapping and prospecting as well as ground geophysics and a 26 hole diamond drill program totaling 1,625 metres.

-The work identified several conductive trends in the central portion of the property and at least three, relatively flat lying graphitic beds.

-Three surface samples were collected and analyzed returning results of 14.16% Cgf, 18.06% Cgf and 20.35% Cgf.

-23 of the initial 26 drill holes intersected graphite concentrations with graphite concentration in range of 4.69% in hole Q90-1 to a highlight of 8.07% Cgf over 28.60 metres in hole Q90-7.

-The highest individual assay was reported in hole Q90-10 reporting 15.48% Cgf over 0.50 metres.

A table of results from the 43-101 indicates:

 ------------------------------------------
 |HOLE NO.|FROM(M)|TO(M)|WIDTH (M)|GRADE  |
 |        |       |     |         |(% CGP)|
 |----------------------------------------|
 |Q90-1   |8.94   |10.46|1.52     |7.33   |
 |----------------------------------------|
 |Q90-2   |28.68  |30.13|1.45     |10.38  |
 |----------------------------------------|
 |Q90-3   |16.23  |17.84|1.61     |4.09   |
 |----------------------------------------|
 |Q90-4   |9.4    |14.1 |4.7      |3.95   |
 |----------------------------------------|
 |Q90-5   |2      |3.90 |1.90     |2.07   |
 |----------------------------------------|
 |Q90-5   |22.13  |23.25|1.12     |10.52  |
 |----------------------------------------|
 |Q90-6   |32.54  |41.19|8.65     |8.07   |
 |----------------------------------------|
 |Q90-6   |43.47  |44.05|0.98     |3.87   |
 |----------------------------------------|
 |Q90-7   |3.94   |32.54|28.60    |8.07   |
 |----------------------------------------|
 |Q90-8   |1.54   |2.16 |0.62     |14.89  |
 |----------------------------------------|
 |Q90-8   |5.23   |8.05 |2.82     |7.45   |
 |----------------------------------------|
 |Q90-9   |2.05   |3.10 |1.05     |8.47   |
 |----------------------------------------|
 |Q90-9   |5.76   |6.8  |1.04     |10.86  |
 |----------------------------------------|
 |Q90-10  |2.14   |5.54 |3.40     |8.02   |
 |----------------------------------------|
 |Q90-10  |7.03   |7.61 |0.58     |10.59  |
 |----------------------------------------|
 |Q90-10  |8.53   |9.03 |0.50     |15.48  |
 |----------------------------------------|
 |Q90-10  |9.27   |11.24|1.97     |12.37  |
 |----------------------------------------|
 |Q90-10  |14.16  |15.46|1.30     |4.26   |
 |----------------------------------------|
 |Q90-11  |26.82  |34.02|7.20     |4.63   |
 |----------------------------------------|
 |Q90-12  |0.94   |8.53 |7.59     |8.60   |
 |----------------------------------------|
 |Q90-12  |38.16  |43.61|5.45     |3.79   |
 |----------------------------------------|
 |Q90-13  |0.69   |10.28|9.59     |4.64   |
 |----------------------------------------|
 |Q90-13  |40.95  |43.14|2.19     |3.82   |
 |----------------------------------------|
 |Q90-14  |5.56   |7.22 |1.66     |8.12   |
 |----------------------------------------|
 |Q90-15  |2.21   |5.59 |3.38     |9.76   |
 |----------------------------------------|
 |Q90-16  |       |     |         |NSV    |
 |----------------------------------------|
 |Q90-17  |15.48  |18.63|3.15     |8.11   |
 |----------------------------------------|
 |Q90-17  |21.43  |23.67|2.24     |13.29  |
 |----------------------------------------|
 |Q90-17  |36.77  |47.97|11.20    |5.88   |
 |----------------------------------------|
 |Q90-17  |57.15  |58.21|1.06     |9.53   |
 |----------------------------------------|
 |Q90-17  |59.54  |69.82|10.28    |5.99   |
 |----------------------------------------|
 |Q90-18  |10.68  |12.90|2.22     |8.12   |
 |----------------------------------------|
 |Q90-19  |47.80  |49.25|1.45     |9.16   |
 |----------------------------------------|
 |Q90-19  |50.42  |58.49|8.07     |5.72   |
 |----------------------------------------|
 |Q90-20  |13.51  |16.98|3.47     |5.81   |
 |----------------------------------------|
 |Q90-21  |2.80   |4.98 |2.18     |5.56   |
 |----------------------------------------|
 |Q90-22  |17.37  |20.04|2.67     |2.58   |
 |----------------------------------------|
 |Q90-23  |       |     |         |NSV    |
 |----------------------------------------|
 |Q90-24  |1.78   |4.14 |2.36     |3.77   |
 |----------------------------------------|
 |Q90-24  |12.32  |13.09|0.77     |4.20   |
 |----------------------------------------|
 |Q90-24  |16.86  |18.66|1.80     |4.96   |
 |----------------------------------------|
 |Q90-25  |19.69  |21.24|1.55     |3.67   |
 |----------------------------------------|
 |Q90-25  |25.27  |26.65|1.38     |9.66   |
 |----------------------------------------|
 |Q90-26  |       |     |         |NSV    |
 ------------------------------------------

The Company cautions that it has not had the chance to verify the quality and accuracy of the historic sampling and drilling results reported in this news release which predate the introduction of NI 43-101 and cautions readers not to rely upon them. The historic figures were generated from sources believed to be reliable, however, they have not been confirmed. Although the sampling and drilling results are relevant, they have not been verified.

Graphite Market

-The price for flake graphite is $ 2000-$3000 per tonne depending on flake size and grade.

-Graphite prices have been increasing in recent months and over the last couple of years prices for large flake, high purity graphite (+80 mesh, 94-97%C) have more than doubled.

-Graphite prices have almost tripled since 2005 due to the ongoing industrialization of China, India and other emerging economies and resultant strong demand from traditional steel and automotive markets.

-Demand for graphite is expected to rise as electric vehicles and lithium battery technology are adopted, nuclear reactors are built in China, and if fuel cells and graphene patents become products.

-China, which produces about 70 per cent of the world’s graphite, is seeing production and export growth leveling, and export taxes and a licensing system have been instituted.

-Europe and the USA have both indicated graphite is of economic importance and has a supply risk (Critical Raw Materials for the EU, July 2010).

Graphite Facts

-Natural graphite comes in several forms: flake, amorphous and lump.

-Southwestern Quebec is host to some of the most favorable geological terrain for graphite exploration in Canada and is known to host graphite resources, including the nearby Lac Des Iles mine operated by Timcal.

-Graphite has many important new applications such as lithium-ion batteries, fuel cells, and nuclear and solar power that have the potential to create significant incremental demand growth.

-There is roughly 20-30 times more graphite by weight needed to produce a lithium-ion battery than there is lithium.

-Of the 1.2 million tonnes of graphite produced annually, approximately 40 per cent is of the most desirable flake type.

-High-growth, high-value graphite applications require large-flake and high-purity graphite which is the prime exploration and development target at the Quatre Milles Property.

Near-Term Strategy

Lomiko plans to mount an aggressive exploration campaign on the Quatre Milles Graphite Property commencing with a complete compilation of historic geologic work followed by surface mapping, prospecting and follow-up diamond drilling.

Jean-Sebastien Lavallee (OGQ #773), geologist, a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical content of this release.

For more information, review the website at www.lomiko.com, or contact A. Paul Gill at 604-729-5312 or by email at: [email protected].

On Behalf of the Board

“A. Paul Gill”

Chief Executive Officer

We seek safe harbor. 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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Atocha Begins Work on Montpellier Graphite Property, Quebec

Posted by AGORACOM-JC at 9:00 AM on Tuesday, March 27th, 2012

Mar 27, 2012 (ACCESSWIRE-TNW via COMTEX) — March 27, 2012 – Vancouver, British Columbia, CANADA – Atocha Resources (the Company), TSX.V – ATT reports it has engaged the services of Dany Boilard Inc. to begin work on the newly purchased 25 claim (1,475 ha) Montpellier block located in the Grenville sub-province of the Precambrian Shield in Quebec. The Grenville sub-province is considered to be highly favourable for graphite plus gold, silver, copper, nickel, PGE (platinum group element) and REE (rare earth element) mineralization.

Atocha has hired Dany Boilard Inc. to carry out detailed exploration through GIS compilation, site visits and a mass mailing to the landowners in the Montpellier property area. All property data on the MRNF E-Sigeom database will be compiled to prepare a comprehensive exploration plan for the 2012 exploration season. The location and address of the private landowners will also be determined by a mass mailing and compilation of answers to build a data base of land ownership that can be accessed for exploration, as required under articles 235 and 236 of the Quebec mining act.

The Montpellier Property is situated approximately 90km to the northwest of Montreal, Quebec in Ripon-Hartwell-Suffolk townships with good road access. Historic diamond drilling in 1965 is reported in the Ripon township portion of the property. The Suffolk township claims have reported graphite occurrences in drill core from the latter part of the 1960′s.

Shareholders and Investors are encouraged to sign on to the Company mail list in order to receive timely updates. Please visit www.atocharesources.com   or email [email protected] to add your contact details.

ABOUT ATOCHA

Atocha is a natural resources company engaged in the acquisition and exploration of mining/exploration properties, mainly for copper and precious metals. The Company has a 100% undivided interest in the McGillivray Property, located in the Kamloops Mining Division of British Columbia. The Company has an option to acquire a 100% undivided interest in the Atkinson (Detour Lake) gold project in Ontario. Atocha owns the Sol Riche and Tresor Nord/Sud REE properties in Montviel Township of Quebec, the Trove, Descouverte and Bijou gold properties in the Abitibi of Quebec and the Strike 101-114 gold claims near Dawson City, Yukon.

For further information on Atocha, please refer to www.sedar.com   .

For further information, please contact:

Marcy Kiesman, Chief Executive Officer

Telephone: 604.696.1111

Facsimile: 888.266.3983

E-mail: [email protected]

Website: www.atocharesources.com 

Forward-Looking Statement

This document may contain or refer to forward-looking information based on current expectations, including, but not limited to timing of mineral resource estimates, future exploration or project development programs and the impact on the Company of these events. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances. For a detailed list of risks and uncertainties, as it relates to Atocha Resources Inc., please refer to the Company’s Prospectus filed with SEDAR.

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More Flake Graphite Needed to Keep Pace With Surging Battery Demand

Posted by AGORACOM-JC at 7:32 AM on Tuesday, March 27th, 2012

Consumer appetite for electronic gadgets such as laptops, iPhones, cell phones, and MP3 players is fueling demand for lithium-ion batteries, which contain twenty times more graphite than lithium. In addition, mankind’s quest for cleaner vehicles – such as electric cars, which also require lithium-ion batteries – is increasing demand for graphite, a metal once seen as a staple for the steel industry.

Brent Nykoliation, Vice President of Business Development at Energizer Resources Inc.  (TSX:EGZ ,OTCBB:ENZR,FWB:YE5), said that electric vehicles, which are already being developed, hold one of the biggest and most immediate potential offtakes for graphite in the coming years. China, for example, is reportedly  preparing to stock up on enough graphite to put one million vehicles a year on the road starting in 2015. At an average of 130 pounds of graphite needed per electric car battery, the net requirement per year will be 300,000 tons of graphite.

“Now multiply that by five million cars and you see the demand potential,” Nykoliation told Graphite Investing News in an interview. “And that’s just China. Morgan Stanley predicts electric vehicles and hybrid electric vehicles to have a 25 percent penetration level globally by 2025 from just 0.1 percent today. While many would think this is an overly aggressive estimate, just taking a five percent penetration of the 850 million vehicles globally today equals more than 40 million vehicles by 2025. Industry analysts agree that the big producers making graphite are concerned because they are not prepared to meet that level of demand.”

Global demand for graphite is currently about 1.2 million tons a year, and most of that comes from the steel industry. In 2008, according to GeoMega  (TSXV:GMA ), a Montreal-based exploration company, graphite demand for lithium-ion batteries was approximately 44,000 tonnes, or about ten percent of the flake market.

“Currently batteries account for roughly five percent of global graphite demand,” Chris Berry, founder of House Mountain Partners , told Graphite Investing News in an interview. “However, demand for lithium-ion batteries for use in various applications is growing by 20 percent per year. As you need 20 times more graphite in a lithium-ion battery than you do lithium, it is clear that there is potentially strong demand for large-flake, high-purity graphite in the future.”

3,000 tons of graphite to start nuclear reactor

Energizer’s Nykoliation added that there are several new applications that are entirely reliant on graphite, such as pebble-bed nuclear reactors. A one gigawatt pebble-bed nuclear reactor needs about 3,000 tons of graphite to start and up to 1,000 tons a year to operate. “A lot is happening, and these developments are going to create a huge demand for graphite.” Energizer is fast-tracking its Green Giant  project in Madagascar, with plans to mine large-flake graphite in 2014. The Toronto-headquartered company is developing what it believes is one of the largest graphite deposits in the world.

Canaccord  (TSX:CF ) estimated in a recent research report that lithium carbonate demand from lithium-ion batteries will reach 286,000 tonnes by 2020, requiring a six-fold increase  in annual flake graphite production to cater to the production of so many batteries. Northern Graphite Corp.  (TSX:NGC ) said that only flake graphite, which can be upgraded to 99.9 percent purity, can be used to make the spherical or potato-shaped graphite used in lithium-ion batteries. “The process is expensive and wastes 70% of the feedstock flake graphite. As a result, spherical graphite currently sells for $4-6,000/tonne, or twice the price of high quality flake graphite.”

Ryan Fletcher , a director at Zimtu Capital Corp. (TSXV:ZC ,OTC Pink:ZTMUF,FWB:ZCT1), a Vancouver-based firm that invests in resource companies, told Mineweb  in a recent interview that the steel industry and other historic applications of graphite use amorphous graphite, but these new emerging technologies use flake graphite. “About 40 percent of that 1.2-Mt market is flake and 60 percent amorphous, so the flake graphite market is just over 400,000 tons per year. Some of the players in the industry anticipate that just one application alone, the lithium-ion battery, could use well over 1.6 Mt of flake graphite per year by 2020, which is more than threefold the entire current market. Even if the market doubles, that’s 800,000 tons of graphite per year by 2020. A large-scale producer puts out only about 20,000 to 40,000 tons per year, which means a lot of new mines and a lot of opportunity.”

House Mountain’s Berry said “there are dozens of companies involved in the lithium-ion battery business for both technology and storage.” LG Chem  and A123 Systems (NASDAQ:AONE ,FWB:ALC) are two companies involved in producing lithium-ion batteries.

Considering the fact that a large-scale producer’s upper end of graphite production is 40,000 tons of flake graphite per year, and that there is an estimated additional demand of one million tons by 2020, about 25 new mines are needed by that time. WithChina  controlling more than 70 percent of the globe’s graphite production and calling for rare earth-style quotas on its export, there will be a premium placed on graphite mines in countries that are seen as more stable and less prone to resource nationalism.

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Flinders financing set to fund restart of graphite mine in Sweden

Posted by AGORACOM-JC at 7:24 AM on Tuesday, March 27th, 2012

Graphite has been a hot commodity of late and one Canadian junior looks to have capitalized on market sentiment through a proposed C$15 million financing.

Posted:  Monday , 26 Mar 2012

HALIFAX, NS (MINEWEB) - –

After Flinders Resources (TSX-V: FDR) said it would raise C$15 million in a private placement on Monday morning, its shareprice leapt by more than a third in the first minutes of trading to as high as C$2.75.

It settled down soon thereafter, but was still well up by 19 percent to C$2.24 as of presstime late in the trading day. Share volume was strong over 1.5 million.

The private placement Flinders outlined was set at C$1.70 a unit with each unit comprising a share and a half-share purchase warrant @ C$2.20.

That Flinders shareprice revved well above the private placement purchase price suggested the appetite to get into Flinders stock and by extension its flagship graphite project in Sweden was hearty.

Graphite has recently caught a fair amount of attention. There were a noticeable number of graphite stories on display at the recent Prospectors and Development Association convention in Toronto, suggesting juniors are increasingly attuned to it as an investment story.

The reason for the buzz is a simple matter of price. Higher quality graphite especially, used in products as batteries and solar panels, has more than doubled in price in the past couple years.

Flinders’ chief selling point is that it owns a permitted past-producing graphite mine in Sweden, called the Kringel mine, which it could have up and running within two years, it has said. There it lists historic resources of 6.9 million tonnes @ 8.8 percent carbon.

“Importantly, with Kringel at such an advanced stage of development, the cost of re-starting operations will be relatively modest and this $15 million financing is expected to deliver to Flinders most if not all of its restart budget requirements,” said Martin McFarlane, Flinders president and CEO in a prepared statement.

The graphite deposits, Flinders has said, are enough to keep it going for over 30 years. The mine went out of production because of lacklustre graphite prices in the early 2000s.

Since then it has been on pause with infrastructure including tailings and milling facilities still in place.

One area the company looks keen to capitalize on is the battery market that requires high purity graphite – with 99.5 percent or more carbon. This high purity graphite fetches a premium price.

Flinders has said that it will conduct feasibility tests in a pilot plant to see if its worth upgrading its graphite products to near full carbon purity. Historically past operators produced graphite that was 85 to 94 percent carbon at the Kringel mine, Flinders said.

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Galaxy Capital Corp. Arranges 12 Million Unit Private Placement

Posted by AGORACOM-JC at 2:40 PM on Monday, March 26th, 2012

VANCOUVER, BRITISH COLUMBIA–(Marketwire – March 26, 2012) – Galaxy Capital Corp. (TSX VENTURE:GXY) (the “Company” or “Galaxy”) is pleased to announce that it has arranged for a non-brokered private placement of 12 million units at a price of 18 cents per unit. Each unit will consist of one common share and one transferable eighteen month share purchase half-warrant. Each half-warrant will be exercisable at a price of 25 cents to purchase one additional common share of Galaxy. Galaxy intends to use the funds with this private placement for exploration and development on its graphite exploration projects in Quebec and for general working capital.

About Galaxy

Galaxy Capital Corp is a publicly traded Canadian exploration company which is focused on exploring and developing graphite properties, especially in the Grenville geological province in eastern Canada. In addition, the company is exploring a highly prospective gold property in northeastern Saskatchewan, Brownell Lake.

Sun Graphite Property, Quebec

The Sun Graphite property consists of 4,200 hectares, located approximately 145 km by road, north of Baie-Comeau, QC. The property is owned 100% by Galaxy Capital Corp. The claim block hosts multiple targets for large flake graphite, initially identified by Outokumpu Mines Inc. in 1998, looking for base metal mineralization.

The property is located within the Central Metasedimentary Belt of the Grenville Province of the Canadian Shield. This geological province is characterized by a high level of metamorphism, critical in the development of coarse flake graphite. This metamorphism is believed to have occurred approximately one billion years ago.

Within the property boundary, in excess of 25 km of conductive horizons were identified from the airborne survey. All of this may be considered prospective for graphite mineralization.

Buckingham Graphite Property, Quebec

The Buckingham Graphite property comprises two former producing mines, located just east of Buckingham, QC. They are located in the highly prospective Central Metasedimentary Belt of the Grenville geological province, host to many active graphite projects. The host rocks for both deposits are graphitic crystalline marbles, similar to the host stratigraphy at Timcal’s Lac des Iles graphite mine, currently Canada’s only producing graphite mine. The two properties cover a total of 1,324 Ha on 22 mining.

Graphite Market

Global consumption of natural graphite has increased from approx. 600,000 in 2000 to 1.2 MM t in 2012. Demand for graphite has been increasing by approximately 5% per year since 2000 due to the ongoing modernization of China, India and other emerging economies, resulting in strong demand from traditional end uses such as the steel and automotive industries. Graphite also has many important new applications such as lithium ion batteries, fuel cells and nuclear and solar power that have the potential to create significant incremental demand growth. There is roughly 20 times more graphite required by weight to produce a lithium-ion battery than there is lithium. Demand for graphite is expected to rise as electric vehicles and lithium battery technology are adopted as well as increasing uses in new technology applications.

Natural graphite comes in several forms: flake, amorphous and lump. Of the 1.2 million tonnes of graphite produced annually, approximately 40% is of the most desirable flake type. China, which produces about 73% of the world’s graphite, is seeing production and export growth leveling and export taxes and a licensing system have been instituted. A recent European Commission study regarding the criticality of 41 different materials to the European economy included graphite among the 14 materials high in both economic importance and supply risk (Critical Raw Materials for the EU, July 2010). Graphite prices have been increasing in recent months and over the last couple of years prices for large flake, high purity graphite (+80 mesh, 94-97%C) have more than doubled.

Chris M. Healey, geologist, a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical content of this release.

ON BEHALF OF THE BOARD

Chris M. Healey, President and CEO

For further information, please visit the website at www.sedar.com to view the Company’s profile.

We seek safe harbor.

FOR FURTHER INFORMATION PLEASE CONTACT:

Galaxy Capital Corp.
Chris M. Healey
President and CEO
604-921-1810
604-921-1898(FAX)

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Energizer Resources Confirms Jumbo Flake Graphite With +90% Purity; DRA Mineral Projects Makes Initial Equity Investment in Energizer

Posted by AGORACOM-JC at 9:40 AM on Monday, March 26th, 2012

TORONTO, ONTARIO–(March 26, 2012) – Energizer Resources Inc. (TSX:EGZ)(OTCBB:ENZR)(FRANKFURT:YE5) (“Energizer” or the “Company”) is pleased to announce that it has received positive initial metallurgical test results from its Green Giant Project in Madagascar and that DRA Mineral Projects has made an equity investment into the Company.

Graphite ore samples from the Fotsy and Molo zones were submitted to the North Carolina State University (NCSU) Minerals Research Laboratory in Asheville, North Carolina for preliminary evaluations to define potential for recovery of commercial products. Simple mechanical crushing with no flotation yielded flake sizes of +50 mesh, which according to Tom Burkett, Vice President of Graphite Materials & Systems at SGL Carbon Group – the world’s largest carbon company – is regarded by the industry as jumbo flake. Both ores have produced graphite concentrates at purities of +90%.

Both samples were subjected to beneficiation that included crushing, grinding, and various flotation schemes. A +50-mesh grind was utilized for the majority of the testing to achieve a high degree of liberation while maintaining a particle size that would be attractive to the marketplace. This testing recovered graphite in the form of oversize products at +50 mesh and flotation concentrates.

Data is still being processed and an initial report will be forthcoming by the NCSU complete with conclusions, recommendations, flake distribution summary and a preliminary process flow sheet.

Green Giant Outlines Extensive Graphite Zones

Energizer’s Senior Vice President of Exploration, Craig Scherba, P. Geol., commented, “We are very pleased with these initial results. With the confirmation of jumbo flake graphite and +90% purity, Energizer has now met two more thresholds and when combined with our exploration results to date, make our Green Giant project quite unique in the marketplace. We have multiple zones with mineralization at surface, high grades, wide intersections and strike lengths that can be measured in kilometers, not meters. We are outlining a graphite camp.”

To date, Energizer’s Green Giant and JV Property contains 17 separate and distinct graphite zones, seven of which have been drill tested. The culmination of drilling, trenching, geophysics, geologic mapping and prospecting have confirmed graphite mineralization in all tested zones to be at surface, open along strike and at depth.

Drill assays have been received so far from two zones, the Fondrana and the Fotsy, showing high grades and extensive widths (FOND-01: 6.24% C over 118.6 meters; FOND-TH-11-01: 7.11%C over 106 meters; FOTSY-TH-11-05A: 9.93%C over 10 meters). Initial assay results are expected shortly from the Molo and Seta zones.

DRA Makes Initial Equity Investment in Energizer

The Company is also pleased to announce that a private placement transaction has been concluded with DRA Africa Pty Limited, a wholly owned subsidiary of DRA Mineral Projects (“DRA”) who has recently become a technical partner of Energizer (see January 25, 2012 news release).

Johann de Bruin, Pr.Eng, and Director of DRA commented, “Our current understanding of the quality of the graphite within the tenements as well as our understanding of the logistics associated with the development of a mine in the Southern part of Madagascar gives us enough confidence in the Green Giant Graphite and Vanadium project to justify moving forward with an equity investment in Energizer Resources. This represents a further commitment to the project and solidifies our relationship with Energizer since being appointed as their technical partner. It is our intention to increase our equity position as funds and test work analyses become available in accordance with the MOU. We look forward to supporting Energizer Resources in bringing this project to implementation and operation.”

Kirk McKinnon of Energizer stated, “We are very pleased that DRA has decided to invest in Energizer. It certainly reflects their belief in our project and further strengthens our relationship. Their role of technical partner is a key factor in our ability to move the project from resource definition to production within a very short timeframe. As the importance of graphite continues to manifest itself, speed to market will become increasingly important in order to maximize shareholder value.”

DRA has subscribed for 2,540,000 common shares of Energizer for gross proceeds of $635,000 USD. This results in DRA having an equity position of 1.6%. Under the terms of the Memorandum of Understanding (“MOU”), DRA has the right to acquire up to a 5% equity position in Energizer. Future private placements will be done at market conditions. The transaction requires final regulatory approval and all securities issued in this matter are subject to applicable hold periods.

About DRA Mineral Projects

  • DRA is a world leader in process engineering and metallurgy and has been a provider of full EPCM services (Engineering, Procurement and Construction Management) since 1984. DRA has a primary focus on managing the development of mining projects in the African Continent
  • Employ over 1,100 people with operating offices in Southern and Central Africa, Australia, India, China, Canada and the UK.
  • A well-qualified team of over 350 professional engineers and project management professionals specializing in large capital projects in the minerals processing fields of coal, vanadium, diamonds, gold, platinum, ferrous metals, base metals and heavy mineral sands
  • They are a leader and specialist in the field of outsourced operations and maintenance of minerals processing plants. They currently operate 22 mineral processing facilities in Africa and Indonesia

About Energizer Resources

Energizer Resources Inc. is a mineral exploration and development company based in Toronto, Canada, which is developing its Green Giant Project located in Madagascar. The Green Giant hosts one of the largest known vanadium deposits and potentially one of the largest known graphite deposits.

The identification of 17 graphite trends, with a cumulative strike length in excess of 320 km, on the 100% owned Green Giant property and 75% owned Joint Venture (with Malagasy Minerals Limited (ASX:MGY) properties, have validated the Company’s belief that the Green Giant Project has the potential to host a potential graphite camp. Metallurgical results to date confirm jumbo flake (+50 mesh) with +90% purity.

As graphite and vanadium are considered to be critical minerals, the Company will position itself to both strategic partners, and the financial markets, a dual offering of critical minerals from a single source for energy and storage, as well as steel and other innovations worthy of development.

In addition to the Toronto Stock Exchange (TSX:EGZ), the Company’s common shares trade on the U.S. Over-The-Counter Bulletin Board under the symbol ENZR, and on the Frankfurt Exchange under the symbol YE5.

For more information on graphite, graphene and vanadium, please visit our website at www.energizerresources.com.

We seek Safe Harbour: This press release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from expectations and projections set out herein.

Contact Information

 

Energizer Resources Inc.
Brent Nykoliation
Vice President of Business Development
Toll Free: 800.818.5442 or 416.364.4911
[email protected]

Energizer Resources Inc.
Kirk McKinnon
Chairman and CEO
Toll Free: 800.818.5442 or 416.364.4911
www.energizerresources.com

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AGORACOM Welcomes Focus Metals As Newest Sponsor Of GraphiteStocksBlog.com

Posted by AGORACOM-JC at 10:40 AM on Friday, March 23rd, 2012

FMS: TSX-V

GraphiteStocksBlog.com a website dedicated to the needs of investors and companies in the fast growing Graphite industry, is pleased to announce that Focus Metals (FMS:TSXV) has become a sponsor of our site.

Focus Metals is a Canadian junior explorer and owner of the 16% carbon grade Lac Knife crystalline flake graphite deposit located in the Côte Nord region of Quebec.  Focus is fast-tracking the exploration program at Lac Knife with the aim of developing one of the lowest cost producers of industrial and technology-grade graphite in the world. A NI 43-101 compliant feasibility study on the project was completed in December 2011.  As a junior explorer with significant cash holdings, the company states it is poised to assume a leading position for graphite supply on a global scale and plans an aggressive program of acquisition, mergers and joint-venturing.

Focus Metals is managed by a great team and led by President and CEO, Gary Economo.  Mr. Economo enjoys a long history of graphite marketing and sales for high-tech applications. Over the span of his business career, Mr. Economo provided strategic consulting and representation services to technology companies in North America and Asia.   Beyond sharing a growing friendship with him, I respect and admire Gary for his work ethic, expertise and deep knowledge of the world’s technology needs.

As always, assume I am horribly conflicted by the fact Focus Metals is a sponsor of our site and conduct your own thorough due diligence.  To this end, in addition to the helpful links above, here is some information provided by the company to help get you started.

Top 5 Reasons to Consider Focus Metals

1. The company has two properties each containing a strategically important mineral – graphite and neodymium – needed for green initiatives and U.S. national and industrial security.

2. The Lac Knife graphite property has a proven history. Nearly developed in the early 2000s in a joint venture between Graftech and Ballard Power Systems, previous studies are being recast to NI 43-101 standards, and discussions with funding and/or development partners are currently underway.

3. The Kwyjibo REE property has as a strategic partner in the government of Quebec. SOQUEM, the wholly owned subsidiary of SGF, an industrial and financial holding corporation of the government of Quebec, holds 50% of the Kwyjibo property. SOQUEM/SGF are known for their long-term vision and successful development within the Quebec economy.

4. Market applications favour the company. Incremental demand for graphite and neodymium will be driven by green initiatives. Li ion batteries, fuel cells and magnet demand in the next five to seven years have the potential to consume more graphite than all current uses combined. Neodymium is one of three REEs projected to be in deficit supply.

5. Supply conditions favour the company. China controls the current global market in graphite and in REEs. Over 80% of the world’s graphite is produced in China and over 95% of the world’s REE production is in China. China is restricting supply and controlling and manipulating the price.

Lac Knife – Graphite Project

The Lac Knife graphite deposit is located on the Labrador border, south of Fermont, Quebec. It contains a NI 43-101 compliant resource of some 8 million tons grading 16% graphite, making it the highest grade graphite resource in the world. The deposit absorbed 7,600 metres of historic exploration drilling that defined mineralization over 600 metres of strike, that averaged 20 metres in width, and remains open in all directions and at depth.

An expanded drilling program is planned for 2012 to further define and expand the graphite resource.The area hosts excellent infrastructure, with cheap Quebec electric grid power, and nearby access to road, rail and port facilities. Lac Knife is also close to Fermont, Wabush, and Labrador City which serve as bases for three iron ore mines in the area, one being the largest open pit mine in North America. Lac Knife is currently at the pre-development stage but Focus plans to fast track development and commence annualized production of 20,000 tonnes of 95%graphite in 2013, and commission a secondary enrichment and refining facility capable of producing an additional 3,000 tonnes per year of 99.9% graphite in 2014.

Kwyjibo – REE (Rare Earth Elements) & Copper Project

Focus Metals’ Kwyjibo, Quebec, rare earth elements (REE) and copper property being developed in partnership with Soquem, the Quebec Government’s commercial mining corporation, is on a fast-track for development.

The property, located some 10 kilometers north of Lac Manitou, was designated by the Quebec government in 2010 as a priority economic development target. It sits in one of the province’s historically-rich iron ore, copper and gold (IOCG) mineralized zones.

Discovered during the early 1990s, Focus Metals 2010 summer drilling program produced significant initial results for rare earths, primarily neodymium – a critical alloy in super-strength magnets used in hybrid and electric vehicle motors, representing about 20% of total rare earth oxides.

Romer & Labrador Trough Project

Focus Metals’ longer-term development project in the Ungava-Labrador Trough region of Northern Quebec holds potential economic prospects for the discovery of gold, platinum, palladium, copper, zinc and nickel.

Focus Metals owns 100% of these 13 properties covering some 668 square kilometres running north-south from our Lemming property in southwestern Ungava Bay to Fox, some 75 kilometers east of Schefferville, Quebec.

Our Romer property, however, showed potential interest from 2009 geologic surface samplings and we decided in late 2010 to formally assay those findings.

Positive assay results for gold, silver and copper from earlier work conducted in 2009 confirmed historical showings and identified several new mineralized zones on the Romer Property.

Significant gold values included 8.54 g/t Au on the Lac Plissé Showing and 2.03 g/t Au from a pyritic boulder which represents a new discovery and a new type of gold mineralization on the property.

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