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Investments Worth Their Weight in Graphite: Glen Jones

Posted by AGORACOM-JC at 5:08 PM on Wednesday, June 27th, 2012

The Critical Metals Report: In a May 31 press release, your firm said, “If China’s approach to rare earths was applied to graphite, the impact on global demand, supply and prices would be significant.” Do you believe China will establish export quotas on different types of graphite?

Glen Jones: If the demand for the different products in which graphite can be used—for example, lithium-ion batteries—actually comes to fruition, then yes, I believe China will establish export quotas, because it will need graphite for its own internal production.

“Rare earths and graphite are not as cut-and-dry as gold or copper. Thus, my advice is always, ‘Research.'”

TCMR: Is the growth in graphite demand from current applications like refractory and lithium-ion batteries enough to support the 40 companies now seeking economic graphite deposits?

GJ: If this growth comes about, there could be a shortage of graphite. Not all of these companies will find deposits, but it is necessary to have 40 companies exploring—it increases the chance of discoveries.

TCMR: Graphite demand is growing at a rate of about 5% per annum right now. That’s reasonably healthy, but not extraordinary. What catalysts are going to get investors excited?

GJ: Green energy initiatives: fuel cells, solar electricity, new-generation nuclear power and pebble-bed nuclear reactors. When some of those technologies will be perfected and when greater graphite demand will come still remains to be seen.

TCMR: You’ve said the graphite mining business is misunderstood. What is the source of confusion?

GJ: Investors are overwhelmed about the various types of graphite, flake or vein. The variations in grade, prices and the sources for each type make graphite a very confusing market, and a lot of investors are just jumping on the graphite bandwagon because they don’t want to be left out. I compare it to the early days of rare earth elements (REEs). REEs, like graphite, are not as cut-and-dry as gold or copper. Also, graphite just kind of popped up, and investors wonder why it’s suddenly in such demand. All of the numbers about the future use of graphite and how much supply will be required are still just estimates. Even if the numbers were more certain, they still depend on the fluctuating economy.

That’s what’s misunderstood in the business. Thus, my advice is always, “Research.” With the Internet, there’s such a huge amount of research available. Most companies have PowerPoint presentations you can access. There are also many government sites, such as the U.S. Geological Survey, that you can consult to boost your technical knowledge.

TCMR: Canada is home to 71% of the graphite projects currently being developed. Graphite is relatively abundant throughout the world, so why are so many projects located in Canada? Does it hurt the sector to have so much of the work happening in one country?

GJ: For investors, it’s not bad to have so much supply concentrated in Canada. The country is blessed with great geology for resources, not only for graphite but many other commodities, including gold, copper, nickel and lead zinc. About 45% of the world’s listed mining companies, over 1,600, are listed on the TSX and TSX-Venture exchanges. Most of these companies are experienced. They know how to raise money. They know how to explore. Plus, Canada has great infrastructure and is mining friendly.

TCMR: Within the last year, roughly 40 companies specifically seeking graphite were listed on various Canadian exchanges. Does this almost-overnight increase trigger any alarm bells?

GJ: I’m not concerned with the number of companies jumping in. It happens in the exploration business. Of the 140 projects in the world that these companies own or have acquired, about 80 are grassroots projects, which Intierra classifies as having no previous drilling. This leaves about 40 properties that are at various advanced stages. Of that group, maybe half a dozen will get to the feasibility stage. I think it’s good to have so many companies in there right now.

TCMR: Within those 140 graphite projects, only one graphite mine is being built. Should that concern investors?

“Canada is blessed with great geology for resources. Most of these companies are experienced. They know how to raise money. They know how to explore. Plus, Canada has great infrastructure and is mining friendly.”

GJ: I don’t think so. Within the next couple of years, two or three other mines will likely come into production. One is the Kearney mine in Ontario, currently privately owned by Ontario Graphite, which I think will go public. It’s a past producer of graphite, and it should open in Q312 or Q412. It will produce about 20,000 tons per year (t/a), which is a decent size. Total world production in 2010 was about 925,000 metric tons graphite. The Lac Des Iles mine is in Québec and owned by Timcal, which is a division of Imerys (NK:PA), produces about 25,000 t.

Another upcoming mine is the Kringel mine, owned by Flinders Resources Ltd. (FDR:TSX.V) in Sweden. It was a past-producing mine and is currently under care and maintenance. It’s permitted with a mine and a mill just sitting there. The company should produce up to about 13,000 t/a graphite and hopes to be producing by 2014.

The Lac Knife deposit, which is owned by Focus Graphite Inc. (FMS:TSX.V), is in Québec. Construction there should begin in 2013, and it will probably produce about 25,000 t/a. It’s supposed to be one of the largest high-quality and high-grade deposits in the world. Focus raised $20 million ($20M) as of April 11 to continue exploration and development of Lac Knife and various facilities there. That’s impressive, given the current economic climate.

TCMR: It’s not all that far from the Lac Des Iles mine you referenced earlier. Will that be useful to the new project?

GJ: The closeness means there’s good infrastructure in place already, so a new project doesn’t necessitate a new railway or more roads.

TCMR: Another company that’s done a couple of financings in the last year and raised over $12M is Northern Graphite Corporation (NGC:TSX.V; NGPHF:OTCQX).

GJ: Northern owns the advanced-stage, flake-graphite Bissett Creek deposit in Ontario. It’s completed a preliminary economic assessment and started its bankable feasibility study and environmental and mine-permitting process. It hopes to fast-track it and begin construction late this year.

TCMR: Could you see an offtake partner coming into that equation?

GJ: Probably. That’s certainly something that’s happened with many companies in the REE sector, which is similar to the graphite space in a lot of ways.

TCMR: You have said that only four graphite companies, Focus Graphite, Northern Graphite, Archer Exploration Ltd. (AXE:ASX) and Flinders Resources, have raised more than $2M since January 2011. Did you think there would be more companies reaching that level?

GJ: Yes, I was surprised. I thought that there would have been a lot more companies in there, and I thought there would have been a lot more raised. At Intierra, we only track anything over $2M. That’s our bottom line.

TCMR: What are some commonalities among those companies that did raise over $2M?

GJ: They all had advanced projects. A lot of the juniors with early-stage projects are having trouble raising capital now.

TCMR: If you were investing in a graphite play, would you be more likely to invest in an advanced-stage play or in one of the early stages of exploration, where you can see those quick run-ups?

GJ: You have to know your investment appetite. Do you want less risk or more risk? With more risk come better gains. I invest in both.

TCMR: What are some of the early-stage plays that have some potential?

GJ: I like Energizer Resources Inc. (EGZ:TSX.V; ENZR:OTCBB). It has the Green Giant project in Madagascar. Its vanadium property is already at the prefeasibility stage, and the company has found 17 graphitic zones on the property. Investors get vanadium and graphite in one.

TCMR: That’s a sizeable resource in a country that has seen very little exploration. How much of an advantage is that?

GJ: There are advantages and disadvantages. Virgin territory is more open for discoveries. But because the country has not had significant exploration, companies could possibly run into permitting, infrastructure and labor issues.

TCMR: What other early-stage plays do you like?

GJ: Strike Graphite (SRK:TSX.V) has two interesting projects in Saskatchewan. The Deep Bay East project is a historic property with significant exploration in past years. It’s very close to the Deep Bay West graphite mine, which is also being ramped up. The Wagon graphite property is near the Lac Des Iles mine, and it’s had numerous amounts of historical exploration on it as well.

TCMR: It’s going to have an NI 43-101-compliant resource estimate by Q412. Will that be a catalyst for the share price?

GJ: Definitely. A lot of investing is about anticipation.

TCMR: Tell us about IntierraLive and how it could help investors in graphite.

“You have to know your investment appetite. Do you want less risk or more risk? With more risk come better gains. I invest in both.”

GJ: IntierraLive is the largest global mining database, but unfortunately we do not have a package for retail investors. However we are also famous for our maps. They show where a company is exploring, that region’s infrastructure, its mines and deposits, et cetera. We hope to have a graphite map out in a month or two. It’s going to be a Canadian graphite map, focused on Ontario and Québec. Investors will be able to pick one up at a conference or call the company they’re interested in to request one. A number of companies put portions of our maps on their websites.

TCMR: Do you have any thoughts you’d like to leave our readers with on the graphite space?

GJ: Do your research. Look at a company’s cash position. These days, that’s really important, and if a company doesn’t have cash, it’s really hard to raise it. Look at the company’s management. Have the members been involved in other commodity plays? Have they been around the business for a while? Does the company have the technical expertise to move their company’s projects forward? Sure, you could just put your money in a company and hope that the stock will double or triple, but if you’re a serious investor and you do not want to lose your money, then you do have to do the research.

TCMR: Thank you.

Glen Jones started his career in the mineral exploration industry over 35 years ago, mapping underground stopes and logging drill core. He founded Mineral Information Maps in 1980, and in 1992, he developed the “Hot Play” map concept and began publishing maps that showed rapidly developing area plays around the world. He merged his company with Intierra Resource Intelligence in 2003, which developed a web-based application for bringing together all levels of technical, financial and spatial data. Jones is the executive director for the Western Hemisphere at Intierra, where he oversees all aspects of the business for the Americas.

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) Brian Sylvester of The Critical Metals Report conducted this interview. He personally and/or his family own shares of the following companies mentioned in this interview: None.
2) The following companies mentioned in the interview are sponsors of The Critical Metals Report: Northern Graphite Corp., Focus Graphite Inc., Energizer Resources Inc. Streetwise Reports does not accept stock in exchange for services. Interviews are edited for clarity.
3) Glen Jones: 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 by Streetwise Reports for participating in this story.

( Companies Mentioned: AXE:ASX, EGZ:TSX.V; ENZR:OTCBB, FDR:TSX.V, FMS:TSX.V, NK:PA, NGC:TSX.V; NGPHF:OTCQX, SRK:TSX.V, )

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Graphite One Commences Drilling and Completes Confirmatory Surface Sampling

Posted by AGORACOM-JC at 10:03 AM on Wednesday, June 27th, 2012

Jun 27, 2012 (ACCESSWIRE-TNW via COMTEX) — June 27, 2012 – Calgary, Alberta – Graphite One Resources Inc. (gph:TSX-V)(gphof:OTCQX) (“Graphite One” or the “Company”) is pleased to announce it has mobilized a crew to the Graphite Creek Property and has commenced exploration. The multi-phased exploration program is designed to: (1) map and rock sample along the known EM conductor(s) to test strike extent and grade of graphite mineralization on surface; (2) drill test known surface graphite showings and high priority EM conductor(s), to complete a 43-101 compliant resource; and (3) complete surface mini-bulk sampling for mineralogy and metallurgical testing.

“We are excited to announce the commencement of our 2012 summer drill program,” stated Anthony Huston, President and Director for Graphite One Resources. “This initial drill program on the Graphite Creek Property has been built around an EM survey, mapping and rock sampling by our experienced exploration team, which marks a key milestone in the history of this property.” continued Mr. Huston.

Twelve rock grab samples were collected along the EM conductor at Graphite and Trail creeks by Mr. R. Eccles, M.Sc., P.Geol., of APEX Geoscience Ltd. The samples, which included both graphite-rich and background schist samples, were analyzed at Actlabs, Ancaster, Ontario and ten of the samples contained graphite (41.4, 40.1, 33.3, 24.8, 22.8, 9.26, 4.26, 3.16, 2.23, 0.77% Cg*; figure 1).

Figure 1: To View Map Image, please copy and paste URL below into a new browser:

http://thenewswire.ca/client_files/2012-06-26-1.pdf

In addition, Sean Mager has stepped down as a Director on the Board for Graphite One Resources and has assumed a position on the Advisory Board. Dale Hansen, Chief Financial Officer for Graphite One Resources, has assumed the role of Director along with his current position as CFO for the Company. “We wish to thank Mr. Mager for his invaluable service as a member on the Board of Directors and we look forward to continuing to work with Mr. Mager as he assumes his role on the Advisory Board, and we are pleased to welcome Mr. Hansen to the Board” stated Anthony Huston, President and Director.

Mr. Hansen is a Certified Management Accountant with over 20 years of experience in the oil and gas industry. During his tenure at Suncor Energy, Mr. Hansen spent two years in Fort McMurray, Alberta as Financial Accounting Manager gaining valuable insight into the Oil Sands mining process. He has a proven track record of performance leading cross-organizational change initiatives and system implementation projects. Mr. Hansen is also Chief Financial Officer of Happy Creek Minerals CA:HPY -16.13% and Chief Financial Officer and Director of Vela Minerals Ltd.

Dean Besserer, P.Geol., V.P. Exploration, manages Graphite One’s exploration and development programs and is the Qualified Person as defined by National Instrument 43-101. He supervised the preparation of the technical information in this release.

About Graphite Creek

The Graphite Creek Property comprises 89 claims totaling 4,209 hectares on the Seward Peninsula of Alaska, 65 kilometres north of Nome. Mineralization at the Graphite Creek Property is characterized by coarse crystalline (large-flake) graphite (>80mesh) within graphite-bearing schist(s). Graphite mineralization is exposed at surface. The large-flake graphite occurs as disseminations and high-grade segregations and lenses in distinctive garnet-bearing quartz biotite schist(s). The host schist(s) is continuous over 13 kilometres of strike length, based on mapping, geophysics, and has an approximate thickness of 100 metres, and is exposed down dip 100 to 200 metres, thus indicating the potential for 150 to 250 million tonnes of graphite-bearing rock. The estimate of potential tonnage is based on the Company’s geological mapping in 2011. Two samples were collected during 2011 of the graphite-bearing schist contain 9.1 to 21.8% graphite, respectively. A sample collected within a high-grade lense within the schist contained 56.9% graphite. A historical composite chip sample across a 16 metre outcrop of graphite-bearing schist contained 8.36% graphite. Other schists in the area contain 2 to 6% graphite. The potential size and grade of the mineralization at the Graphite Creek Property is conceptual in nature as there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in discovery of a mineral resource. The Property is 3 kilometres away from intertidal waters at Windy Cove, approximately 20 kilometres away from road systems, and 3 kilometres from an airstrip to the southeast.

Graphite One uses Actlabs (Ancaster, Ontario), an ISO/IEC 17025 accredited analytical laboratory. The technique used for determining graphitic carbon is by LECO whereby the pulp is either digested with hydrochloric and perchloric acids, or subjected to a multistage furnace treatment to remove all forms of carbon with the exception of graphitic carbon.

Graphite One Resources is committed to a regimented QA/QC program including utilizing standards, blanks and duplicates as per normal industry standards.

About Graphite One Resources Inc.

GRAPHITE ONE RESOURCES INC. (gph:TSX-V)(gphof:OTCQX) is a mineral exploration company with extensive experience in the state of Alaska and a business strategy to identify, acquire, and explore high potential projects ready for rapid advancement. The Graphite Creek Property on the Seward Peninsula of Alaska fits with the Graphite One business strategy offering significant potential for the discovery and development of a large-flake, graphite deposit exposed at surface. Graphite One has an option to earn a 100% interest in the Graphite Creek Property and plans to rapidly advance the Property to a NI 43-101 compliant resource.

The graphite market is only beginning to open up as green technology takes more precedence in the world today. Graphite is vital for lithium-ion batteries, pebble bed nuclear reactors, and fuel cells amongst other uses. Graphite has been named a “supply critical mineral” and a “strategic mineral” by the USA and European Union as more demand is being created that surpasses the supply threshold. This has allowed for the price of graphite to rise, as over the past 7 years the price has nearly tripled.

*Cg = Graphitic Carbon

ON BEHALF OF THE BOARD OF DIRECTORS

(signed) “Anthony Huston”

For more information on Graphite One Resources Inc. please visit the Company’s website, www.GraphiteOneResources.com or contact:

Anthony Huston President & Director Tel: (604) 697-2862 Email: [email protected]

Neither the 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.

This release includes certain statements that may be deemed to be forward-looking statements. All statements in this release, other than statements of historical facts that address access to capital, regulatory approvals, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, changes in government policies regarding mining and natural resource exploration and exploitation, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this press release, and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. For more information on the Company, investors should review the Company’s continuous disclosure filings that are available at www.sedar.com

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Canadian Platinum Corp. Announces Results on Extensive Graphitic Horizons at Its Peter Lake Project in Northern Saskatchewan

Posted by AGORACOM-JC at 9:51 AM on Wednesday, June 27th, 2012

CALGARY, ALBERTA–(June 25, 2012) –

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Canadian Platinum Corp. (“Canadian Platinum” or the “Company”) (TSX VENTURE:CPC) is pleased to report assay results of the graphite content on the recently identified thick sequence of graphitic argillite on its Peter Lake Project (the “Project”). Although the focus on the Project continues to be on the copper/nickel/PGE potential of the Swan Lake mafic/ultramafic Complex and the Swan Lake deposit (see CPC News Release, May 30th, 2012), the graphitic argillite offers additional potential for the large land position held by the Company. The Company’s mining claims in the area cover approximately 500,000 acres.

In 2009, CPC carried out an Airborne ZTEM Survey over two blocks of the Peter Lake Property. Within one of these blocks, the survey identified two strong regional conductors that extend for 25 km within the Campbell River Group. A drill hole testing the ZTEM anomaly, drill hole TP-05-09, intersected 142 m of graphitic argillite and was terminated in graphitic argillite. Analysis of the graphite content of this hole gives the following results:

From m To m Core Length m C wt% Inorganic C wt% Organic C wt% Graphite wt%
7.4 26 18.6 3.2 0.2 2.2 0.7
27.5 45 17.5 7.4 1.3 4.4 1.7
47.9 57.2 9.3 5.9 1.2 3.3 1.3
60.1 72.4 12.3 5.4 1.4 3.0 1.0
89.3 110.9 21.6 3.2 0.3 2.7 0.2
117 149.4 32.4 3.8 0.2 3.2 0.4

Examination of historical drill holes within the area of the conductors showed them to be caused by graphitic argillite. One of the historical holes intersected 300 m of graphitic argillite. The Company sampled the graphitic argillite intervals from these two drill holes. Because of the nature of the drill holes, from each 10 foot interval, a one foot representative sample was taken. The results of this analysis are summarized as follows:

Hole Number Number of Samples From m To m C wt% Inorganic C wt% Organic C wt% Graphite wt%
1-72 93 3.66 295.66 3.2 0.2 2.5 0.6
4-72 21 14.02 77.42 3.8 0.4 2.2 1.2
including 9 14.02 39.62 7.1 0.7 4.2 2.2

Future efforts toward this recent discovery include a liberation test to examine how the graphitic carbon separates from the whole rock and organic carbon. In addition, the Company plans to run an ICP test on all samples to further delineate the full metal content of the graphitic argillite mineralization. Also planned is an x-ray diffraction test which will provide a better understanding of the entire elemental makeup.

Discussing the significance of this discovery, Mr. Todd Montgomery, President and CEO of the Company was quoted as saying:

“We are pleased with the recent progress in identifying a potentially viable graphite resource. These results indicate that the argillite interval has the potential to host ore grade graphite intervals and, because of the now confirmed 25 km strike length of this unit, has the potential to host a significant graphite deposit. With this in mind, we are optimistic about our timing. Market conditions are favorable with a tight supply and robust demand. China continues to drive prices up as the largest supplier of graphite. They produce nearly 70% of the world’s supply and presently maintain tight controls on supply with a 20% export duty, 17% value added tax and a complex export licensing system. Additionally, our research indicates that forecast demand growth rates for the graphite market will be within the range of 25% to 30% annually. This robust demand is due in large part to the diverse set of industrial demand drivers which include use in refractories, steel, brake lining, and lubricants as well as in emerging markets like lithium-ion batteries, fuel cells, solar panels, pebble bed nuclear reactors and vanadium redox batteries. We will continue to work hard to realize any potential value this discovery has to offer for the Company”.

John G. Pearson, PGeo, the Company’s qualified person under NI 43-101 has reviewed and approved the technical disclosure of this press release on behalf of the Company.

Canadian Platinum Corp. is a Calgary, Alberta based corporation engaged in the exploration of platinum group and base metals in Canada.

CAUTION REGARDING FORWARD LOOKING STATEMENTS

Certain statements contained herein constitute forward-looking statements. Such forward-looking statements are subject to both known and unknown risks and uncertainties which may cause the actual results, performances or achievements of the Corporation to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. The forward-looking statements included in this press release are made as of the date of this release and except as required by law, the Corporation does not undertake any obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release may contain statements within the meaning of safe harbour provisions as defined under United States Securities Laws and Regulations. The above statements are based on the current expectations and beliefs of the management of Canadian Platinum and are subject to a number of risks and uncertainties that may cause the actual results to differ materially from those described above.

Neither the 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

 

Canadian Platinum Corp.
Steve McGuire
Investor Relations
1-416-306-2496
1-416-369-0515 (FAX)
[email protected]
www.canadianplatinumcorp.com

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Graphite Supply – All Set to Go the Way of Rare Earths?

Posted by AGORACOM-JC at 10:53 AM on Monday, June 25th, 2012

MetalMiner welcomes guest contributor Jaychandran Pradeep, a Chennai-based senior research analyst in Industry Durables for Beroe Consulting India Pvt Ltd. Pradeep tracks the markets of various industrial durable products and their associated raw materials and provides strategic reports, which assist Beroe’s Fortune 500 clients in effective procurement. Beroe specializes in providing procurement intelligence and advisories for a broad swath of industries.

Graphite, as many school-aged kids could tell us, is a mineral used to make pencil tips. However, this mineral also finds applications in a broad array of industries ranging from steelmaking, batteries and manufacturing of various industry durables to neutron moderators used in nuclear reactors, making it extremely important to ensure its supply for steady industrial growth.

Over recent years, graphite has attracted considerable amounts of attention, with good reason, due to the skewed nature of its supply base. Similar to many other crucial minerals and metals, China holds an iron grip over the global graphite supply.

 

A Critical Raw Material

The US State Department, British Geological Survey and The European Commission have all declared graphite to be a critical raw material, due to its importance in crucial industries like steel, batteries (lithium-ion), and nuclear reactors.

Lithium-ion batteries, widely used in electronics like cell phones, power tools and notebook computers contain almost twenty times more graphite than lithium. According to a Canaccord research report,

“Annual flake graphite production will have to increase by a factor of six by 2020 to meet incremental lithium carbonate requirements for batteries.”

The US does not produce natural graphite domestically and is almost completely dependent on imports for graphite supply. More than 50 percent of the US’ graphite requirements is met by imports from China, which is a cause for concern for the US government. Many governments across the world are very intent on development of fuel cells through large-scale funding. Graphite is a primary raw material used in the bipolar plates of these fuel cells.

A US Geological Survey report states, “large-scale fuel-cell applications are being developed that could consume as much graphite as all other uses combined.”

Parallel with Rare Earth Metals

Everyone knows how the rare earths story played out, starting with China (which controls over 97 percent of world’s supply) introducing export quotas and higher taxes for export of rare earths and the eventual opposition by major consumers like the US, Japan and Europe.

In the case of rare earths, when China introduced controls on exports, the world suddenly realized how vulnerable and dependent it was on China for consistent supply. Industry experts pointed out that going forward, China intends to become a net exporter of finished products rather than a mere supplier of raw materials to the world, which was the primary objective behind the export restrictions.

Industry experts, and their views on China’s agenda of moving up the value chain of critical minerals and metals, were apparently right. Now, the Chinese government has shifted its sights on another mineral, graphite, for which it controls over 70 percent of world production.

Similar to rare earths, China has imposed a 20% export duty and 17% value-added tax on exports of graphite. Currently there are no distinct export quotas on graphite like rare earths; however, industry participants believe that it would not be surprising if China were to impose such export quotas in the short term.

More on the parallels of the graphite and rare earth markets, including detailed trend graphs and price outlooks, coming up in Part Two.

–J. Pradeep

Source: http://agmetalminer.com/2012/06/25/graphite-supply-all-set-to-go-the-way-of-rare-earths/

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Standard Graphite Receives Approval for Option to Acquire Historical Resource at Mousseau East Deposit in Quebec

Posted by AGORACOM-JC at 9:15 AM on Monday, June 25th, 2012

VANCOUVER, BRITISH COLUMBIA–(June 25, 2012) – Standard Graphite Corp. (TSX VENTURE:SGH) (the “Company”), is pleased to announce that it has now received TSX Venture Exchange approval for the option agreement to acquire the Mousseau East Deposit located some 40 kilometres northeast of the town of Mont-Laurier in northwestern Québec, as originally disclosed in the Company’s News Release dated April 24, 2012. The new property is located within 50 kilometres of Timcal Canada Inc.’s producing Lac-des-ÃŽles Graphite Mine, which is currently the larger of the two producing mines in North America. Standard Graphite now intends to conduct strategic exploration with the aim of building a NI 43-101 compliant resource by upgrading the historical non-compliant resource on the property.

The Mousseau East Deposit was discovered in 1983 following the emplacement of a new road in the area north of Ste-Véronique, Québec. Systematic exploration was carried out by Graphicor between 1989 and 1993 with property-scale electromagnetic geophysical surveys along cut grids, and exploration and definition drilling leading to resource estimates. Drilling completed between 1989 and 1992 consisted of three successive campaigns and some 62 diamond drill holes, totaling 4996 metres, allowing for a resource calculation to be conducted. The possibility of initiating a mining operation was evaluated using only a 40-metre-deep open-pit on the main resource of the Mousseau East Deposit.

This preliminary evaluation of the mining potential was based on resource estimates calculated internally in 1992 by Graphicor Resources for the levels comprised between surface and -40 metres. This estimate was further verified and validated independently by Derry, Michener, Booth and Wahl (DMB&W), now based in Vancouver. The historical non-NI 43-101 compliant estimates quoted are presented in the table below.

Mousseau East Deposit
Historical Resource Estimates
Category
Proven Probable Possible
Tonnes Grade

(% Cg)

 Tonnes Grade

(% Cg)

 Tonnes Grade

(% Cg)
Graphicor 598,480 8.29 219,450 8.13 288,760 7.85
DMB&W 578,500 8.02 528,080 8.28

A qualified person has not completed the work necessary to verify the historical estimates as mineral reserves or resource for purposes of NI 43-101. The Company is not treating the historical mineral resource estimates as NI 43-101 defined current resources or reserves. The historical estimates should not be relied upon. This property will require considerable further evaluation, which Standard’s management and consultants intend to carry out in due course.

It must be emphasized that this resource only takes into consideration the levels comprised between surface and -40 metres. The graphite horizon is anticipated to continue below the -40m level as well as along strike. Some further untested targets need to be explored; especially a widening of the conductive zone located some 600 metres to the SE of the main Mousseau East Deposit. The Company is planning due diligence work to begin soon on the project, and a field exploration program will be implemented following a complete assessment of the historical information. Due to the project having been left dormant since 1992, the Company has begun to assess the drill locations, cross sections, EM data, and proposed mine plan from previous operators.

Please click the following link for an overview of the Mousseau East project:

http://www.standardgraphite.com/i/pdf/mousseau.pdf

Terms

The Terms of the Agreement have been amended from those disclosed in the Company’s April 24th press release to the following: Standard will acquire a 100% interest in the project by making aggregate cash payments of $375,000 and issuing shares with an aggregate value of $400,000 (based on the ten day Volume Weighted Average Price subject to a minimum price per share of $0.30) prior to the Second Anniversary to the Vendor as follows:

(i) $25,000 in cash on signing Definitive Agreement; (ii) $50,000 in cash and $100,000 in common shares within 48 hours of TSX Venture Exchange (TSXV) approval; (iii) an additional $100,000 in cash and $100,000 in common shares on or before the first anniversary of TSXV approval; and (iv) an additional $200,000 in cash and $200,000 in common shares on or before the second anniversary of TSXV approval. In addition, the Company has agreed to a $100,000 work commitment to be completed on or before the first anniversary.

Bonuses of either $500,000 or $750,000 in either cash or shares are payable by Standard to the Vendor upon filing of a technical report within one year of TSXV approval, which discloses Measured & Indicated resources on the property of 5,000,000 and 8,000,000 tonnes respectively with a minimum grade of 6% Cg.

The Vendor will retain a 1% Net Smelter Royalty (“NSR”) on the property that can be repurchased by Standard for $500,000.

Antoine Fournier, P.Geo., manages Standard’s exploration and development programs and is the Qualified Person as defined by NI 43-101. He supervised the preparation of the technical information in this release.

About Standard Graphite

Standard Graphite Corp. is focused exclusively on the exploration and development of a large portfolio of flake graphite properties in Canada. The company is rapidly positioning itself as North America’s premier pure-play graphite exploration company, and it controls 100% interest in 13 highly prospective graphite properties within known graphite districts in both Quebec and Ontario. An aggressive 2012 exploration strategy has commenced and is being implemented by a geologic team with the pedigree of a previous world-class graphite discovery.

ON BEHALF OF THE BOARD

Chris Bogart, President & CEO

Cautionary Statement:

The foregoing information may contain forward-looking statements or forward-looking information relating to the future performance of Standard Graphite Corp. These forward-looking statements or information relate to, among other things: the Company’s business strategy, the accuracy of mineral reserve and resource estimates, the timing of completion of exploration programs and preparation of technical reports. Forward-looking statements, specifically those concerned with future performance are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties include, among others, the Company’s cash flow and availability of alternate sources of capital; operating or technical difficulties in connection with mining or development activities; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins and flooding); reliability of historical exploration information and estimate; risks relating to the credit worthiness or financial condition of suppliers and other parties with whom the Company does business; inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on mining or development; relationships with and claims by local communities and indigenous populations; retention of key personnel; availability and increasing costs associated with mining and exploration inputs and labour; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses, permits and approvals from government authorities as well as those other factors detailed from time to time in Standard Graphite Corp.’s filings with the appropriate securities commissions. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws.

FOR FURTHER INFORMATION PLEASE CONTACT:

Chris Bogart
Standard Graphite Corp. - Corporate Information
President & CEO
(604) 683-2509
(604) 683-2506 (FAX)
[email protected]
www.standardgraphite.com
OR
(604) 742-9990 or NA Toll-Free: (866) 742-9990
G2 Consultants Corp. - Investor Inquiries
[email protected]

Neither the 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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New Destiny Mining Corp. Receives Final Exchange Approval on Graphite Properties Agreement

Posted by AGORACOM-JC at 9:34 AM on Friday, June 22nd, 2012

VANCOUVER, BRITISH COLUMBIA-(June 21, 2012) – New Destiny Mining Corp. (the “Company”) (TSX VENTURE:NED) is pleased to announce that it has received final TSX Venture Exchange approval of an option agreement announced May 29, 2012 to acquire 100% of three Graphite properties located in southwestern Quebec.

The properties have been designated the North Low, Calumet and St-Aimé. North Low covers an area of 8.4km2 and is situated in Low Township approximately 50km NNW of Ottawa. Calumet property covers an area of 4.81km2 and is located 100km east of North Low property while St-Aimé property is contiguous to Timcal’s producing Lac-des-iles graphite mine.

“The option to acquire these graphite projects situated in mining friendly Quebec is an exciting step for New Destiny,” stated Rob Birmingham, President of New Destiny Mining Corp. “We are eager to begin work on these properties with the initiating of a work program to commence immediately.”

For additional information please read the Company’s news release dated May 29, 2012 available on SEDAR or the Company website at www.newdestinymining.com.

Robert L. Birmingham, President

Neither TSX Venture Exchange nor its Regulation Service 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

 

New Destiny Mining Corp.
Robert L. Birmingham
President
(604) 608-6611
(604) 608-6620 (FAX)
www.newdestinymining.com

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Focus Graphite featured in Report on Mining Magazine’s Summer 2012 Issue

Posted by AGORACOM-JC at 4:48 PM on Thursday, June 21st, 2012

Read the full article on pgs 6-10: http://tiny.cc/ReportOnMiningSummer2012

Corporate Website / Hub On AGORACOM

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Lomiko Receives Drilling Permit for Quatre Milles Graphite Property

Posted by AGORACOM-JC at 12:42 PM on Thursday, June 21st, 2012

Vancouver BC – LOMIKO METALS INC. (TSX-V:LMR, OTC: LMRMF, FSE: DH8B www.lomiko.com) (the “Company”) is pleased to announce that Lomiko has received a drilling permit and is preparing for the upcoming drilling at the Quatre Milles East Property.

Consul-Teck has proposed a budget of $307, 028 for Phase I and a contingent $724,041 for Phase II for work for the property in the technical report. Lomiko’s drilling will focus on verifying the areas of historical high-grade graphite intersected previously by Graphicor on the property. The historical results are detailed below. It is Lomiko’s goal to complete both Phase I & II and establish a flake graphite resource at the Quatre Milles Property by December 2012.

Future Markets Inc published “The World Market for Graphene” in October 2011. A summary of the Report’s contents indicates:

“Graphene has moved swiftly from the research laboratory to the marketplace, driven by demand from markets where advanced materials are required. These include the aerospace, automotive, electronics, energy storage, solar, oil service, and lubricant sectors. The distinctive electronic, thermal and mechanical properties of graphene make it a potentially disruptive technology across a raft of industries. In 2010, there were over 400 patents issued on graphene and 3,000 research papers published. The European Union is funding a 10 year 1,000 million euro coordination action on graphene. South Korea is set to spend $350 million on commercialization initiatives and the United Kingdom has announced investment of ?50million in a new commercialization hub.”

Lomiko Metals In conjunction with Visual Capitalist has developed a Graphene Infographic for the use of investors.

Copy and Paste the following in your browser to review:

http://bit.ly/NVlg6O

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

  1. 1
  2. 2Graphicor 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.
  3. 3Three 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:
  4. 4
 ------------------------------------------
 |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-$4000 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, vein, 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, contact

A. Paul Gill at 604-729-5312 or email: [email protected]

On Behalf of the Board

“A. Paul Gill”

Chief Executive Officer

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IPad Boom Strains Lithium Supplies After Prices Triple

Posted by AGORACOM-JC at 5:20 PM on Wednesday, June 20th, 2012

IPad Boom Strains Lithium Supplies After Prices Triple

Investors from JPMorgan Chase & Co. to BlackRock Inc. are trying to make money from the exploding popularity of iPads and increasing sales of hybrid cars by investing in producers of lithium for batteries.

Prices for the conductive metal, the lightest in the periodic table, have tripled since 2000 in a market now worth $1 billion a year as uses expand in vehicles, ceramics, electronics and lubricants. Apple Inc. (AAPL) and Toyota Motor Corp. (7203), maker of the Prius electric-gasoline car, have few alternatives as they pursue higher performance and mobility, leading Dahlman Rose & Co. analysts to forecast lithium demand will double by 2020.

Talison Lithium Ltd. (TLH), whose shares had gained 22 percent in the month before today, together with Soc. Quimica & Minera de Chile SA, Rockwood Holdings Inc. and FMC Corp. (FMC), account for almost 95 percent of world supply. Rio Tinto Group (RIO), the third- biggest mining company, may join the largest suppliers if it goes ahead with a mine in Serbia it says is capable of producing 20 percent of global output of the metal.

“There are some companies now that we think are attractive to get a hold of lithium exposure,” Evy Hambro, who manages about $13 billion in mining stocks for BlackRock in London, said in an interview. “We’ve got a small exposure today and we’re looking for some more,” he said without naming any companies.

Demand for lithium-ion rechargeable batteries out of Asia has helped prices climb threefold in the last 12 years, London- based Roskill Information Services Ltd. analyst Robert Baylis said. Global use doubled from 2000 to 2011 according to Roskill, which has recently consulted on six lithium projects.

Lithium Oligopoly

The advantage of lithium-ion over other battery types is that a typical cell can generate more electricity than competing cells such as lead-acid. There is about 1.7 grams (0.6 ounce) of lithium carbonate equivalent in a mobile phone, 2.1 grams in a smart phone and 20 grams in a tablet, according to Dahlman Rose.

There will be a “step change” in the global lithium industry in 2016 or 2017 when electric cars became more commonplace, Rockwood (ROC) Chief Executive Officer Seifollah Ghasemi said. Hybrid electric vehicles that are fitted with a lithium- ion battery contain about 1.3 kilograms (2.9 pounds) of the material, plug-in hybrid electric vehicles have about 12.8 kilograms, while an electric vehicle uses about 19.2 kilograms.

The four-strong lithium “oligopoly has the capacity to significantly ramp supply higher, but it will take time and significant capital to accomplish,” Dahlman Rose analysts Anthony Young and Anthony Rizzuto said in a May 16th report. “There are a limited number of known high-grade resources that can be economically extracted and there has not been a new lithium mine constructed in the last 25 years.”

Biggest Producer

Global consumption may jump to 300,000 metric tons a year by 2020 from about 150,000 tons now, Dahlman Rose said June 7. Demand for lithium batteries has been growing at about 25 percent a year, outpacing the 4 percent to 5 percent overall gain in lithium, the firm said.

“Anywhere between a doubling and a tripling of demand in the next 10 years is absolutely our view,” Peter Oliver, CEO of Talison, the biggest producer, said in an interview. “Maybe a doubling is with minimal impact from electric vehicles, and if electric vehicles take off in a big way in the next 10 years it could be as much as tripling.”

Neil Gregson, manager of about $6.9 billion in natural resource assets at JPMorgan Asset Management, said in an interview in London he’s studying investing in the industry. “You can’t see any reason why that won’t be a high growth market for many, many years. It’s a very interesting area.”

Ponce, Kravis

Rio is researching the development of its Jadar lithium- boron operation at a time when other suppliers are expanding output to meet rising demand. Talison, the Perth-based company with a market share of about 32 percent, completed an expansion at its Greenbushes mine in Western Australia this month that has allowed it to double production capacity.

SQM, controlled by billionaire Julio Ponce, is the second- largest, followed by Rockwood, which is backed by Henry Kravis’s KKR & Co., and Philadelphia-based FMC. SQM stock has risen 2.1 percent this year, Rockwood 17 percent and FMC 20 percent. Talison rose as much as 12 percent today in Toronto, the biggest intraday gain in more than three months.

Chile, the second-biggest producing country behind Australia, last week said it will award 20-year concessions to exploit lithium brine in salt lakes. The plan allows developers to mine as much as 100,000 metric tons of the mineral over two decades, said Pablo Wagner, a government undersecretary.

Rio’s Jadar project is in pre-feasibility, which involves conducting studies to better understand the parameters of the deposit and any social and environmental impacts, the company said in an e-mailed response to questions.

Rio ‘Excited’

Lithium is “going to be so critical to that future world of electric vehicles and hybrids,” Tom Albanese, CEO of Rio Tinto, said April 19 in London. “We’ve got a lot of interest from Japanese companies, from Korean companies that actually want to be in the forefront of hybrid and lithium technologies, so I’m actually pretty excited about the project.”

Toyota’s Prius, a niche vehicle when it went on sale 15 years ago, jumped to the world’s third best-selling car line in the first quarter as U.S. demand and incentives in Japan turned the hybrid into a mainstream hit. In the quarter, sales soared to 247,230 cars. While most Priuses sold so far feature a nickel-metal hydride battery pack, the latest model plug-in hybrid contains a lithium-ion battery supplied by Panasonic Corp.

“It’s less than 1 percent of the market now,” Talison’s Oliver said of lithium’s use in batteries for electric vehicles. “We do tend to try and portray a fairly conservative view, but if some of these new technologies take off, it’s going to be a very exciting time for us.”

Tablet Computers

Since the start of Prius sales in Japan in 1997, Toyota has sold 4 million hybrid-electric vehicles worldwide, including 1.5 million in the U.S., the company said May 22.

The global market for tablet computers is growing faster than expected, with Apple’s iPad widening its lead as consumers’ top choice, market researcher International Data Corp. said June. 14. Worldwide shipments of tablets this year will be 107.4 million units, up from an earlier projection of 106.1 million, Framingham, Massachusetts-based IDC said.

Worldwide shipments of tablets should reach 142.8 million next year and 222.1 million by 2016, according to IDC.

“One can claim that without lithium, the whole mobile technology would not have been possible,” Rockwood’s Ghasemi told a Deutsche Bank AG conference June 13. “You use the product every single day.”

Golden Goose

Battery-maker A123 Systems Inc. (AONE) rose 52 percent in New York trading on June 12 after saying it had developed an improved lithium-ion cell that can cut costs of rechargeable and hybrid vehicles. The new cells will be produced next year and can perform better in extreme heat and cold than competing packs, it said.

Expanding battery sales to automakers is seen as the “golden goose” for the lithium industry, according to Roskill, and has spurred new entrants such as Galaxy Resources Ltd. and underpinned expansions by existing producers. Lithium-ion batteries are the biggest application for the material, accounting for about 22 percent of use.

“This is an industry which is consumer led,” Iggy Tan, managing director of Australia’s Galaxy, which made the first sale of a lithium product last month, said in an interview from Perth. “Once it takes off it’s a bit like mobile phones, it’s exponential.”

Plug-in Sedans

A123 supplies batteries for General Motors Co. (GM)’s Spark electric car, Bayerische Motoren Werke AG’s BMW 5 Series hybrid sedan, rechargeable and hybrid cars from China’s SAIC Motor Corp. (600104), buses made by Daimler AG and Volvo AB, and delivery trucks built by Smith Electric Vehicles Corp.

General Motors’ Chevrolet Volt was the best-selling rechargeable auto in the U.S. in May, topping the Prius and Nissan Motor Co.’s all-electric Leaf hatchback. Deliveries of the GM plug-in sedan more than tripled in the month.

Suppliers of lithium have benefited as some car-makers switch from older model nickel-cadmium batteries to lithium-ion.

“It’s really a new technology and it’s taken some time to take hold,” Jonathan Lee, a battery materials and technologies analyst at Byron Capital Markets in Toronto, said in an interview. “Everything is going to lithium-ion whether or not it was nickel-cadmium in the beginning or not.”

Rockwood on May 14 proposed a price increase of $1,000 a ton, or about 22 percent, for lithium salt sold to customers in the year starting July 1. It said the higher price would allow it to fund expansion of its mines. Talison’s Oliver said he raised prices 15 percent in the first half and expects to increase prices again in the second half.

Hockey Stick

SQM, based in Santiago, said May 30 that sales from its lithium unit rose 12 percent in the first quarter to $47.5 million after prices gained 16 percent. Prices for lithium peaked in 2007 before declining through to 2010, according to Roskill.

Galaxy, which sells to customers including Japan’s Mitsubishi Corp. (8058), is positioning itself for what Tan describes as potential “hockey stick-shaped” growth in demand for lithium batteries. It has built a A$100 million ($102 million) lithium carbonate plant in China to better serve Asian customers and made the first sale from the operation last month.

Galaxy is seeking to complete an all-share takeover of Lithium One Inc. (LI) valuing it at about C$112 million ($110 million) to add the Sal de Vida project in Argentina.

“The outlook for lithium is very strong in light of some of the uncertainty of other metals such as copper and many of the industrial metals,” Byron Capital’s Lee said. “Lithium has grown roughly at 10 to 15 percent over the past two years on a per-annum basis. We’re having another strong year this year.”

To contact the reporter on this story: Jesse Riseborough in London at [email protected]

Source: http://www.bloomberg.com/news/2012-06-19/ipad-boom-strains-lithium-supplies-after-prices-triple.html

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Canada Rare Earths Successfully Identifies Electromagnetic Anomalies on both the Lac Des Iles West and La Loutre Graphite Properties, Quebec

Posted by AGORACOM-JC at 11:05 AM on Wednesday, June 20th, 2012

Jun 20, 2012 — Vancouver, British Columbia – June 20th, 2012 – Canada Rare Earths Inc. (“Canada Rare Earths” or “the Company”) (tsx.v:CJC) DE:YXEN -48.78% (otc-bb:CJCFF) is pleased to announce that a 1,145 line kilometer helicopter borne GPRTEM airborne survey has successfully revealed promising graphite targets on both the Lac des Iles West and La Loutre graphite properties. Both projects are located in close in proximity to Timcal Graphite and Carbon’s Lac des Iles Graphite Mine.

At Lac Des Iles West, the airborne survey has revealed an 8km long by 400m wide anomalous electromagnetic trend along with numerous interpreted NNW coincident structures immediately west of Timcal’s Lac Des Iles Graphite Mine. A comprehensive field program to verify the EM anomalies will be undertaken shortly.

At La Loutre, a geological team recently completed a detailed mapping and sampling program which discovered multiple showings of graphite contained in paragneiss and marble and exposed at surface. Samples from these showings were visually estimated to contain up to 30% graphite. Visible flake graphite was also widely reported. All surface samples have been sent to a lab for further analysis, and the results are anticipated within the next few weeks. Meanwhile, the La Loutre airborne survey revealed a strong electromagnetic trend over 10 kilometers long and up to 1 kilometer wide which is also coincident with these surface showings, confirming that the electromagnetic anomaly is certainly associated with graphite where these outcrops were discovered, but equally that this electromagnetic anomaly is also likely suggesting the potential for a much larger graphite bearing system where it is covered by overburden as well.

To review maps of the surveys, please visit the links below:

The Lac Des Iles West electromagnetic survey map

The La Loutre electromagnetic survey map

The La Loutre geological mapping and sampling and electromagnetic map

The GPRTEM – MAG Survey is a high resolution time domain transient electromagnetic survey system. The platform intends to provide very high quality data with a radar altimeter with an accuracy of 1.5 meters and a real-time GPS navigation system with differential corrections providing an in-flight accuracy within 2 meters.

As a result of this work, both projects warrant further exploration.

Alain Moreau P.Geo, Geologist, a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the Lac Des Iles West technical content of this release.

Jean-Sebastien Lavallee P.Geo, Geologist, a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the La Loutre and Labelle technical content of this release.

ABOUT GRAPHITE

Natural graphite comes in several forms: flake, amorphous and lump. Graphite has many important new applications including its use in lithium ion batteries, fuel cells and nuclear and solar power that have the potential to significantly increase the demand for this critical element. For instance, there is between 10 and 30 times more graphite required by weight to produce a lithium-ion battery than there is lithium. In addition, the recent discovery of a new material called graphene, which is actually derived from graphite, has also heightened interest. International research is now underway into a number of its potential applications including enhancing the speed and processing power of many modern electronic devices. This has also increased the interest in graphite.

Meanwhile, global consumption of natural graphite has increased from ~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. Of the 1.2 million tons 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). As a function of these fundamentals, demand for graphite and thereby prices are expected to rise as electric vehicles and lithium battery technology continue to be adopted and while the material performs a greater role in new technology applications. Graphite prices have been increasing in recent months and over the last couple of years and prices for large flake, high purity graphite (+80 mesh, 0.2mm, 94-97% Carbon) have more than doubled.

For more information on Canada Rare Earths Inc., please visit www.canadarareearths.com or call 604.685.5851.

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.

On Behalf of the Board,

“Chad McMillan”

President & CEO

Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release, including statements regarding the Company’s plans for and intentions with respect to the exploration of the Lac Des Isles West, La Loutre and Labelle Projects, and historical information of the projects constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company is able to obtain any required government or other regulatory approvals and any required financing to complete the Company’s planned exploration activities, that the Company is able to procure equipment and supplies in sufficient quantities and on a timely basis and that actual results of exploration activities are consistent with management’s expectations. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors relating to Canada Rare Earth’s operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks may include, among others, actual results of the Company’s exploration activities being different than those expected by management, uncertainties involved in the interpretation of drilling results and geological tests, delays in obtaining required government or other regulatory approvals or financing, inability to procure equipment and supplies in sufficient quantities and on a timely basis, equipment breakdowns and bad weather. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. Canada Rare Earths does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

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Posted in Graphite | Comments Off on Canada Rare Earths Successfully Identifies Electromagnetic Anomalies on both the Lac Des Iles West and La Loutre Graphite Properties, Quebec

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