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Graphite Investment Boom Heats Up

Posted by AGORACOM-JC at 3:19 PM on Tuesday, April 24th, 2012

Graphite seems to be the new rare earth, and investor interest in the mineral, once seen as synonymous with No. 2 pencils, is heating up. Graphite is in short supply, especially large-flake graphite, a must for lithium-ion batteries, fuel cells, and nuclear power. China controls about 80 percent of the world’s graphite supply and its intention to curb exports is causing worry. Historic underinvestment in new graphite projects globally has prompted many juniors to step in and fill the gap. Investor interest in a cycle like this will not last for a long time, but for now, the bubble is growing bigger.

“I believe the Graphite cycle is now where Rare Earths were in 2009,” Ben Axler, managing partner and co-founder of Spruce Point Capital Management, a New York-based hedge fund, was quoted as saying on Seeking Alpha.

Axler, who is long on large-flake graphite company Northern Graphite Corp. (TSXV:NGC), said, “it’s entirely possible…NGC’s shares can easily double from here to over $6/share.” Northern Graphite shares were trading at $2.41 on Friday morning.

Northern Graphite, which owns 100 percent of the Bisset Creek deposit, said earlier this month that it has made test quantities of spherical graphite from graphite. The spherical graphite has been evaluated in lithium/graphite battery test cells, and the “performance of these cells demonstrated that it meets or exceeds current commercial performance requirements,” the company said.

Siddharth Rajeev, head of research at Vancouver-based Fundamental Research Corp. (FRC), told Graphite Investing News in an interview, “we are most bullish on high-grade, large-flake graphite projects.” He added that applications such as batteries and fuel cells will “require high-grade, large-flake graphite – and a significant portion of the demand is currently filled by synthetic graphite. We believe high-grade, large-flake natural graphite has the potential to take a significant market share from the synthetic graphite market.”

But Rajeev warned that “the recent boom and growing investor interest in the graphite sector have resulted in lot of new graphite companies and/or has prompted existing companies to switch their focus to graphite. Switching focus is not uncommon in the junior resource space. We saw the same trend a few years ago when the rare earth and lithium boom started. Several of those rare earth or lithium companies do not exist anymore. We will see the same in graphite as well. Investors should keep this in mind and look for strong fundamentals and management teams before making an investment decision.”

Nathan Pearson and Rachel Harrison reported for VantageWire that investors looking to invest in shares of graphite juniors need to “focus on projects with near-surface, high-grade, large-flake deposits that are in politically and economically safe areas with sound infrastructure.”

Besides Northern Graphite, other firms making headlines in the graphite space are Focus Metals Inc. (TSXV:FMS), Energizer Resources Inc. (TSX:EGZ), Flinders Resources Ltd. (TSXV:FDR), and Standard Graphite (TSXV:SGH) to name a few.

Focus Metals holds 100 percent ownership of its Lac Knife, Quebec, property, which has 16 percent carbon grade medium- and large-flake crystalline graphite, with production expected to begin in 2014. Its shares have risen more than 38 percent so far this year.

Energizer Resources last month confirmed jumbo-flake graphite with more than 90 percent purity at its Green Giant project in Madagascar. Shares of the company have nearly doubled so far this year.

Flinders Resources raised $15 million to advance the Kringel graphite mine in Sweden toward production this month. The Kringel mine, with a capacity 13,000 tonnes per year of flake graphite, operated from 1996 to 2001, when production was halted due to falling graphite prices. The company’s shares are down more than 23 percent so far this year, but have risen more than 20 percent in the past month.

Standard Graphite controls a 100 percent stake in twelve highly prospective graphite properties within known graphite districts in both Quebec and Ontario. Its shares have risen more than 80 percent so far in 2012.

Securities Disclosure: I, Karan Kumar, hold no direct investment interest in any company mentioned in this article.

Source: http://resourceinvestingnews.com/35268-graphite-investment-boom-heats-up.html

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Lomiko Metals to explore Qu̩bec graphite prospect РResource World Magazine

Posted by AGORACOM-JC at 11:36 AM on Tuesday, April 24th, 2012

With the price of flake graphite having tripled since 2005 from $2,000 to $3,000 per tonne, Lomiko Metals Inc. [LMR-TSXV; LMRMF-OTC; DH8B-FSE] management recognized a real opportunity and has now joined the growing number of junior exploration companies targeting this sector.

This begs the question: what is so special about graphite? The answer is that graphite has many important new applications such as lithium-ion batteries. In addition, fuel cells, nuclear and solar power also have the potential to create significant
incremental demand growth. Then there is graphene, a newly-discovered product with many potential uses. Though extremely thin, graphene is stronger and lighter than steel. While still in the R & D stage, graphene appears destined to play a large role in future industrial applications.

Of course, to join this sector, it is crucial to acquire a graphite prospect with excellent potential for development. A. Paul Gill, Chief Executive Officer, scoured Canada and the company has now acquired the Quatre Milles graphite property located in southwest Québec. The region is host to some of the most favourable geological terrain for graphite exploration in Canada and is known to host graphite resources, including the nearby Lac Des Iles Mine operated by Timcal.

Located approximately 175 km northwest of Montreal and 17 km north of the village of Sainte-Veronique, Québec, the road accessible Quatre Milles graphite property is early stage; however, initial exploration results have been very encouraging. Past operator, Graphicor Resources Inc., completed reconnaissance mapping and prospecting as well as ground geophysics and a 26-hole diamond drill program totaling 1,625 metres back in 1989.

Read Article in its entirety.

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Strike Graphite Mobilizing Drill to Simon Lake Graphite Property

Posted by AGORACOM-JC at 8:26 AM on Tuesday, April 24th, 2012

VANCOUVER, BRITISH COLUMBIA–(April 24, 2012) – Strike Graphite Corp. (TSX VENTURE:SRK) (the “Company”) is pleased to announce that it has begun mobilizing field crews to commence an exploration drill program at its wholly owned Simon Lake Graphite Property, located in Northeastern Saskatchewan.

Drilling is anticipated to begin on or about April 24, and expected to require from 35 to 40 days to complete. The exploration will test both historic showings and those identified from the recently completed VTEM program. Approximately 2,500 to 3,500 m within ten holes, will be completed along the 25 km long conductive trend.

Initial drilling will focus on testing known graphite mineralization along the original 5.5 km long, Simon Lake conductive trend; with approximately 2-3 holes. Up to 7 additional holes will test the recently identified 25 km long conductor, located southwest of Simon Lake, proximal to Saskatchewan Highway 905. The results of the high-resolution airborne TDEM survey (News Release: February 23rd, 2012) are currently being interpreted and combined with the historic drill-hole intersections of graphite and existing structural information. The interpretation consists of advanced forward plate modeling of the graphitic horizons at depth; the work is being conducted by Living Sky Geophysics Inc., of Saskatoon, SK.

All relevant graphite intersections recovered from drill-core material will be processed for mineralogical characterization and initial metallurgical testing.

The work program represents the second phase of the Company’s aggressive 2012 campaign that will include a summer and fall exploration program of further ground surveys and drilling. This exploration will advance the highest priority targets in terms of large-flake graphite along this 25 km trend.

To view a Drill Plan Map overlay on the earlier released EM Survey please click the following link:

http://www.strikegraphite.com/images/Simon-Lake-Project-Target-Areas.jpg

The Simon Lake Graphite Project covers 11,800 hectares, and is located approximately 300 km northeast of La Ronge, Saskatchewan and is intersected by Highway 905. The property consists of several showings of flake graphite mineralization in historic drill holes, which were discovered during the exploration of base metals during the early 70’s. Historic Drill Hole 2-72 encountered a graphitic biotite gneiss with descriptions of “abundant graphite” over a 68 m interval.

Approximately 5.5 km to the southwest, along a the same conductive horizon, Drill Hole E42-5 encountered a graphitic biotite gneiss with core descriptions of “disseminated graphite” or “coarse graphite flakes” over 182.9 m of core, with narrower intervals described as “graphite flakes abundant” and “heavy graphite in 6 to 12 inch bands”.

Within the southwest part of the property, approximately 6 km east of Saskatchewan Highway 905, a large and highly conductive structure has been interpreted as a fold hinge. At this location, the conductive unit exceeds 5 km along strike and is more than 2 km wide; and may represent the strike extension of the graphite-bearing lithologies known at Simon Lake.

Geoff Balderson, President remarks “Explorations is advancing as expected and we intend to continue an aggressive approach to follow-up the large-flake graphite potential that we have identified at Simon Lake. From here our goal remains achieving a graphite resource status as quickly as possible for our shareholders.”

Neil G. McCallum, P.Geo., is a Qualified Person pursuant to NI 43-101, and has reviewed and approved the technical disclosure of this news release.

About the Company:

Strike Graphite Corp. is a progressive exploration company with seasoned management targeting strategic assets on a global scale. In addition to the Deep Bay East and Simon Lake graphite properties, the Company is also active advancing its Wagon Graphite property in Quebec next to the Timcal Graphite mine. The company is also advancing the Satterly Lake gold project in NW, Ontario, located just west of Gold Canyon Resources Inc.

On behalf of the Board of Directors,

Geoff Balderson

For more information on the above or to view the Company’s Corporate Presentation on its Graphite assets and opportunity, please visit the Company’s website at www.strikegraphite.com.

We seek safe harbor.

Contact Information

 

Strike Graphite Corp.
Geoff Balderson
604.669.9330 or Toll Free: 1.866.669.9337
604.669.9335 (FAX)
[email protected]
www.strikegraphite.com

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

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

COMMENTARY–ProspectingJournal.com–

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

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

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

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

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

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

–

Jason Staeck
ProspectingJournal.com

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

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Velocity Minerals Ltd.-Quebec Graphite Properties Host Large Flake Crystalline Graphite

Posted by AGORACOM-JC at 10:35 AM on Monday, April 23rd, 2012

VANCOUVER, BRITISH COLUMBIA–(April 23, 2012) – Velocity Minerals Ltd. (TSX:VLC) is pleased to provide further details of historic exploration of its three newly-acquired graphite properties located in the Central Metasedimentary Belt of the Grenville Geologic Province of southwestern Quebec. The following information is from sources that are believed to be reliable but does not meet requirements of National Instrument 43-101 and is provided for information purposes only. The Company’s management and Qualified Persons are conducting due diligence studies to confirm the historic data.

Historical assessment reports, filed in 1991 and 1992 with Quebec’s Ministry of Energy and Resources Mines Sector, refer to large flake graphite on the Ascension and the Lac Vert mining properties and flake graphite on the Buckingham property.

According to the reports, graphite locally occurring on the Ascension “…as flakes up to 1cm in diameter but typically varying from 0.5mm to 5mm in diameter, appears to be preferentially developed within the marble units although minor graphite can be present locally in any of the sedimentary lithologies.”

Similarly, the reports indicate that samples collected from the Lac Vert property contained graphite flakes from 0.5mm to 2.0mm in diameter. The following samples are from historic data. Lower grade samples also were reported.

Sample number Percent Graphite Sample number Percent Graphite
#42404 18.95 % #42411 21.25 %
#42405 18.48 % #42422 4.67 %
#42406 17.58 % #42423 5.06 %
#42407 21.31 % #42424 23.00 %
#42408 19.13 % #42425 15.09 %
#42409 20.73 % #42426 1.68 %

Flake graphite is usually categorized by size as:

Large Flake +80 mesh (> .177mm)

Medium Flake +100 mesh (> .149mm) to -80 mesh (< .177)

Fine Flake -100 mesh (< .149mm)

Recent price quotes indicate that large and jumbo flake graphite, comparable to that reported from the Velocity properties, commands a premium price in the commodity market.

CAUTION: The above-detailed analyses have not been verified in any way by Velocity Minerals Ltd. or its Qualified Persons.

Gerald Diakow, President of Velocity Minerals Ltd., said, “Based on the historic data, we are confident that the claims host the large flake and, in fact, extra large flake graphite, which is highly sought after, and is found in a carbonate setting that reflects well for efficiently extracting the graphite from the ore.”

This News Release is based upon information prepared under the supervision of Erik A. Ostensoe, P. Geo., a Qualified Person (as defined in NI 43-101). However, the specific data referred to herein was obtained from government files and other historical sources believed to be reliable but which have not and cannot be verified.

Velocity Minerals Ltd. is a public company dedicated to the acquisition, exploration and development of molybdenum and other mineral resources. In addition to the Company’s two Cassiar, B.C. area properties, several other opportunities in the mining industry in North America and elsewhere are actively being pursued.

On behalf of the Board of Directors,

Kenneth R. Holmes, Chairman.

Forward-Looking Information

This release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or by words indicating that events or conditions “will”, “would”, “may”, “could” or “should” occur. 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 may differ materially from those in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.

The TSX has neither approved nor disapproved of the information contained herein.

Contact Information

 

Velocity Minerals Ltd.
Jeremy Yaseniuk
Investor Relations
(604) 689-7411 or Toll Free: (866) 920-0567
www.velocityminerals.com

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Zenyatta Ventures; Drilling Continues to Intersect Wide Zones of Graphite Breccia at Albany GRAPHITE Deposit in Ontario, Canada

Posted by AGORACOM-JC at 10:26 AM on Monday, April 23rd, 2012

THUNDER BAY, ONTARIO–(April 23, 2012) – Zenyatta Ventures Ltd. (“Zenyatta” or “Company”) (TSX VENTURE:ZEN) is pleased to announce an update on drilling at the Albany Graphite Deposit, located near Hearst in northeastern Ontario, Canada.

Drill hole #3 (Z12-4F3), which is near completion, was collared 200 metres (‘m’) north of the original discovery drill hole (Z11-4F1) and drilled in a southerly direction. Significantly, upon passing through the overburden/limestone, the hole immediately intersected graphitic breccia which shows the deposit coming to near surface. A wide zone (43.1m) of graphitic breccia was intersected from 62.6m to 105.7m followed by a zone of graphitic overprinting from 105.7m to 133.5m. Another, very wide zone (128.1m), of graphitic breccia was intersected from 133.5m to 261.6m. This represents the largest intersection of graphitic breccia drilled to date. Graphitic overprinting consists of veinlets of graphite within the granite.

Drill hole #2 (Z12-4F2) was designed to test the southern extent of the graphite breccia pipe. The drill hole was collared 200 metres (‘m’) south of the original discovery hole (Z11-4F1) to test the limits of the geophysical anomaly model and to define the contact of the graphitic breccia body. The drill hole defined this contact and intersected a wide zone of graphitic breccia and graphitic overprinting, where the breccia pipe model predicted it would be located. The drill hole intersected a wide zone (59.62m) of graphitic breccia from 380.27m to 439.89m.

Graphite analyses for these two (2) drill holes are expected over the next 10-12 days. A plan map, section and additional photos can be found on the website at www.zenyatta.ca.

Holes #4 (Z12-4F4) and #5 (Z12-4F5) have been proposed by our geological technical team and are shown on the website plan map. These drill holes will further test the geophysical conductor with a large (400m) step-out to the east. Hole #4 is scheduled to be started in the next 5-7 days.

The goal of the current drill campaign is to geologically define the extent of the graphite breccias, delineated by an airborne geophysical conductor with approximately 4000m of wide-spaced drilling over the next 2 months. As previously announced in the Company’s news releases, recent drill holes on the Albany project have intersected extensive graphite-rich breccia zones. Subsequent petrographic examination of samples sent to Lakehead University (“LU”) confirmed the drill hole had intersected a very rare hydrothermal (magmatic) occurrence of graphite with a flake size ranging from fine (-270 mesh) to coarse (+40 mesh). As per recommendations of the LU report, SGS Canada Inc. (Mineral Services Division of Lakefield) has been engaged to assess the purity and metallurgical response of the graphite material.

Aubrey Eveleigh, President and CEO stated “Drilling continues to expand this unique and large graphite deposit at our Albany project. The Company is looking forward to continued definition drilling and receiving the graphite analyses within the next 2 weeks.”

The graphite discovery is located 30km north of the Trans Canada Highway, power line and natural gas pipeline. A rail line is located 70km away and an all-weather road approximately 4-5km from the graphite deposit. The Albany graphite deposit is near surface, underneath glacial till overburden.

Mr. Aubrey Eveleigh, P.Geo., President and CEO, is the “Qualified Person” under NI 43-101 and has reviewed the technical information contained in this news release.

This News Release includes certain “forward-looking statements”. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management’s expectations. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company’s mineral properties, and the Company’s financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company’s forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

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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Northern Graphite Reports Additional Metallurgical Test Results

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

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

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

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

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

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

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

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

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

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

About SGS Metallurgical Services (Lakefield)

SGS Metallurgical Services is recognized as the world leader in the development of bankable flowsheets and pilot plant programs. SGS Metallurgical Services was founded over half a century ago. Its metallurgists, hydrometallurgists and chemical engineers are experienced in all the major physical and chemical separation processes utilized in the recovery of metals and minerals contained in orebodies around the world.

About Northern Graphite Corporation

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

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

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

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

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

Contact Information

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

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

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Tap Profits in the Graphite Market: Simon Moores

Posted by AGORACOM-JC at 11:02 AM on Friday, April 20th, 2012

Graphite is the Next Big Thing for resource investors, but as in any sector, due diligence is a prerequisite for success. Enter Simon Moores, graphite market specialist with Industrial Minerals in London. In this interview with The Critical Metals Report, he explains why graphite is “the perfect mineral,” why we’re still going to be talking about it years from now and which companies to watch in this emerging industry.

The Critical Metals Report: You once called graphite the perfect mineral. Why?

Simon Moores: It’s conductive; it’s a lubricant; it’s resistant to high temperatures and it’s a strong mineral. This means it doesn’t have just one major market; it has an abundance of markets and uses. It’s key to existing technologies that have been around for 100 years as well as new technologies, like lithium-ion batteries.

But despite what many think, it’s not a niche industry. Rare earths and lithium are niche industries. Each year, 1.1 million tons (Mt) of graphite is produced. It’s bigger by volume than molybdenum, vanadium, cobalt, tungsten, rare earths and lithium combined.

Graphite miners operate all around the world in Canada, Brazil, Europe, India and, of course, China, which accounts for 80% of production. That’s a new figure that our research at Industrial Minerals has just uncovered for the new Natural Graphite Report 2012. China’s grip on graphite production is greater than people thought previously.

TCMR: What is China’s next move in the graphite market? Do you think there will be more quotas and export restrictions?

SM: There are no rare-earth style quotas at the moment. China doesn’t say, “We are only allowing 400,000 tons (t) of graphite to be exported every year.” But the country is doing things that could restrict the raw materials supply. The government doesn’t like exporting raw materials that other people make money from. It is trying to build a value chain to unlock the value in its natural resources.

For example, China exports flake graphite to Japan. Japan turns it into battery-grade graphite, which is then used to make anodes, which is then used to make batteries, which Japan then ships for a much higher cost than the raw graphite. Now China is trying to build those finished products domestically. As a result, less raw material will come out of the country. In addition, China is trying to control its sprawling mining industry by forcing consolidation. Graphite is a perfect example of a sprawling Chinese mining industry.

TCMR: China is already encouraging foreign companies who depend on rare earth elements (REEs) to set up shop in the country. Do you see the same story unfolding in the graphite industry?

SM: The difference with rare earths is that China is the only place you can get good supply. It operates the world’s only mine in Inner Mongolia until Molycorp and Lynas truly get underway.

China is aware that companies can get graphite elsewhere. It is also aware that at the moment it makes good business sense to sell quality raw material at high prices for the short term. Longer term, the story is different.

TCMR: China’s had environmental problems with some of its rare earth operations. You visited some graphite mines in China. Are the graphite mines environmentally problematic?

SM: No, it’s basic mining that has been around for centuries – extracting from the ground, crushing and grinding. You then put it in a floatation tank with reagents. This part of the process requires chemicals, but these are well known chemicals used in many other industries. Finally, graphite processors dry it and bag it. Graphite is an inert mineral, so it’s not harmful. There are no underlying environmental problems in graphite mining.

The only area that holds some controversy is processing into spherical graphite, which requires additional chemical and physical treatment. Acid treatment is quite intensive and there could be future controversy surrounding the disposal of acids used.

TCMR: Are the Chinese mines primarily producing large-flake graphite or a lower-end product?

SM: It’s almost a 50-50 split. Flake graphite mining exists all the way down the country’s spine. This is good-quality material suitable for both domestic and international refractory and battery markets.

The Hunan province, in the south, is home to amorphous graphite, the old-style graphite people first started mining around the world. Amorphous is more common because the graphitization is lower and closer to coal, whereas flake graphite is closer to diamonds. Amorphous graphite supplies lower-end markets that produce products like pencils and lubricants.

Source: http://www.resourceinvestor.com/2012/04/20/tap-profits-in-the-graphite-market-simon-moores?ref=hp

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GreenLight has mobilized an exploration crew to its Christmas Island Gold and Graphite Property

Posted by AGORACOM-JC at 10:22 AM on Friday, April 20th, 2012

Apr 20, 2012 — VANCOUVER, British Columbia – April 20, 2012 – GREENLIGHT RESOURCES INC. (TSXV.GR), is pleased to announce that it has commenced exploration of its recently acquired Christmas Island Gold and Graphite property located in the County of Cape Breton, Nova Scotia. The focus of the exploration program is to expand on known gold and graphite showings and conduct the first systematic geological exploration on the property to determine drill targets.

GreenLight has recently completed a compilation of current and historic data consisting of Airborne and Ground VLF along with Mag and IP surveys. Surface outcroppings corresponding with the VLF-EM surveys have identified a sizeable graphite-bearing structure. These surveys appear to have identified widely disseminated graphite as well as graphite veining. Ground crews will be prospecting for further outcroppings of graphiteand will be sampling known showings. The objective is to help identify drill targets for an upcoming drill program designed to test the graphite structure to width and depth. The field crews will also expand the prospecting program to explore several known gold showings on the property.

Previous sampling work completed on the known graphite showings in 2006 resulted in a processing program being recommended by Dr Ian Flint, a leading expert in Graphite. Execution of 2006 program will incorporate the current field program and data compilation.

A summary of the 100% owned property is as follows:

-Large contiguous 5,760 acreclaim block hosting multiple near surface target areas, for Gold, Copper & Graphite. Numerous IP and geochemical anomalies, the longest of which is greater than a kilometre in length.

-Includes Gold (up to 5oz/t) and Graphite (up to 20% graphite in shear zones, up to 4% disseminated) showings identified from trenching.

-Excellent infrastructure with road access to the property

Flake Graphite Potential

Graphite samples were taken from graphite showings on the newly optioned lands and were tested in 2006. Samples were taken from graphite schist on the property and from the George River Marble along strike from the property. There is a historic graphite mine just to the south, dating from approximately a hundred years ago. Graphite mining of that time concentrated on the high grade, vein graphite, often found at sheared lithologic contacts between schist and carbonates. There is a good possibility that the more economically attractivedisseminated flake graphite mineralization will be found within the George River Marbles that traverse the property. Also the distinctive geophysical anomalyoccurring the propertymay indicate the presence of additional graphite or other conductive minerals.

Gold Silver and Base Metal Targets

The newly staked ground was acquired to cover an area of mineralization first mentioned in 1876 by the Geological Survey of Canada. They noted that a historic old gold shaft existed approximately 400 feet upstream from the mainroad crossing the property. In 1993/94 the Nova Scotia Department of Natural Resources looked for evidence of the gold mine and found a disturbed area with a quartz/sulphide dump. Samples from this dump returned as high as 5.76%Pb, 3.79%Zn, 1.48%Cu, 0.3%Bi, >0.1%Sb, 0.09%WO3, >50g/t (grams per tonne) Ag and 1.5g/t Au.Follow up work by prospectors a few years later received assays of 0.62g/t Au and 48.8g/t Ag from the rock dump samples. It appears from the dump rock that the mined vein was 1 to 2meters wide. The vein was never located in place at that time. Fifty meters to the south a quartz-carbonate-sulphide vein was identified that ran from 0.13 to 1.45g/t Au and 2.6 to 136g/t Ag. There has been little exploration work done here since that time. The prospectors did an IP survey that identified the mineralized structures and a spruce bark survey that indicated that there was an anomalous zone several hundred meters in length along the trace of the vein systems. The survey does correspond with graphite showings found at surface. Panning of the streams in the area showed there to be free gold in two adjoining streams. One stream was located 2.1kilometers to the SW and the other stream is 1.7km to the NE, which indicates the potential for a mineralized structure some 3.8 kilometers in length. The mineralization is hosted in quartz or quartz carbonate veins with sulphides that occur within a discrete shear zone approximately 100 meters wide which is controlled by a NE trending structure (Fault Zone) cutting both George River Group(Bras dOr Gneiss Complex) and the younger Shunacadie Pluton granites and granodiorites.

Readers are warned that “historical records” referred to in this release have been examined but not verified by a “Qualified Person”. Further work is required to verify that the historical assays referred to in this release are accurate.

Patrick Forseille, P. Geo., a Qualified Person as defined by NI 43-101 is responsible for the technical information contained in this release.

Options Granted

The Company also announces that it has granted options to purchase600,000 shares to certain officers, consultants and directors of the Company. The options shall be exercisable at a price of $00.15 cents per share and shall have a term of two years.

On Behalf of the board of directors

“Chris Anderson”

Christopher R Anderson,

CEO – President 604 488-3900

Read about GreenLight Resources Inc.: http://greenlightresources.com/corporate-overview/

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Canada Rare Earths Acquires 2 New Quebec Graphite Projects & Introduces Lavallee P.Geo as Director

Posted by AGORACOM-JC at 3:55 PM on Thursday, April 19th, 2012

Apr 19, 2012 – Vancouver, British Columbia – April 19th, 2012 – Today, Canada Rare Earths Inc. (“Canada Rare Earths” or “the Company”) (tsx.v:CJC) DE:YXEN +11.97% (otc-bb:CJCFF) announces the acquisition of two new Quebec based graphite projects located on the St-Laurent North Shore in Quebec, and that Jean Sebastien Lavallee P.Geo is expected to join the Board of Directors of the Company. These new acquisitions, coined the Champagne and Tetepisca North graphite projects respectively, significantly enhance the Company’s Quebec based graphite project portfolio.

The Champagne Graphite Property

The Champagne graphite property consists of one large contiguous block of 88 mineral claims totaling approximately 4,870 hectares located approximately 120 km north of Baie-Comeau, Quebec.

The Champagne graphite property was originally explored by Outokumpu Mines Inc. (“Outokumpu”) in 1998 for base metal mineralization. According to Outokumpu’s historical reports filed with the Ministere des Ressources Naturelles et de la Faune du Quebec, an advanced helicopter borne geophysical survey consisting of 2,600 kilometers of flight path in the region was performed at that time. The airborne survey revealed multiple electro-magnetic (EM) anomalies in the area, outside or coinciding with magnetic anomalies. In a 15 kilometer long trend across the property, the survey revealed multiple EM target anomalies and off-set structures, including several zones of parallel conductors each measuring as much as 3-5 kilometers long. This suggests an apparent strike length of EM conductors associated with known graphite occurrences of approximately 11 kilometers and the total of all EM structure length close to 20 kilometers long providing a large prospective area to explore for a graphite resource on the Champagne property.

This helicopter borne geophysical survey was followed by ground exploration on approximately half of the major conductors only. The program was abandoned midway when it was concluded that all anomalies visited were related to graphite mineralization and that the base metal sulphides of interest were nearly absent. This historical ground work also confirmed the presence of graphite on surface, coincident with at least several of these conductors. (See map on website http://www.canadarareearths.com/projects-champagne-graphite.php ). Four of the EM conductors have been identified as ‘strong’ and are considered as potentially pod style targets averaging in size between 250 meters by 500 meters to 1.8 kilometers by 250 meters, with moderate EM signatures seemingly connecting them along the length of this trend. Seen as these areas were also identified as hosting graphite mineralization they are early high priority targets for a summer drill program on the property.

Some of the graphite occurrences seem to be associated with the contact (shear zone) between the different geological units. The geology is consistent with the Central Metasedimentary Belt of the Grenville Province and includes quartzofeldspathic rocks, quartzite, biotite gneiss, marble and locally pegmatitic quartzofeldspathic rocks, and intrusive rock as anorthosite and gabbro.

Property logistics are excellent with nearby power and road access via the main lumber haul road which originates in Baie-Comeau and Labrieville leading to numerous tertiary/forest roads that transect the property.

Given the advanced historical pre-drilling exploration work on the Champagne property, and subject to confirmatory reconnaissance of the historical reporting, the project is near ready to be trenched and drilled. The Company has begun the process for camp and drill permitting and is reviewing historical data to plan a new graphite focused exploration campaign on the Champagne property as soon as possible. The campaign will consist of detailed reconnaissance sampling and mapping, trenching and an anticipated first phase of 3,000 meters of drilling to test mineralization along strike to an anticipated vertical depth of approximately 125 meters.

The Company cautions that neither it, nor the Qualified Persons named below have verified the quality and accuracy of the historic exploration results reported in this news release, and cautions readers not to rely upon them. The results were generated from sources believed to be reliable; however, they have not yet been confirmed.

Tetepisca North Property

The Tetepisca North property totals approximately 2,142 hectares, located in the general area of the southwest bank of the Manicouagan Reservoir, approximately 43 kilometres from the Manic V hydro-electric dam, ? 9 kilometres southwest of the Lac Gueret project of Cliffs Natural Resources Inc. (recently purchased by Mason Graphite) and 215 km from the Quebec North Shore deep sea port town of Baie-Comeau. Access is achieved via the 389 national road (Baie-Comeau-Labrador) and logging roads. The property covers the extension of regional conductor and magnetic anomalies over an area of approximately 7 kilometers long and 2 kilometers wide. The property is located along the multikilometric corridor of metasediments or sediments identified by the Ministry of Natural Resources of Quebec as the Proterozoic Nault formation and features excellent road access.

Regionally, the Montreal-based firm Mason Graphite and Cliffs Natural Resources Inc. recently concluded a $ 7.5 million transaction involving the Lac Gueret graphite property.

Meanwhile, St-Georges Platinum and Base Metals Ltd. recently announced that it has increased the size of its Tetepisca property after confirming the existence of surface grab samples that yielded results in the range of 50.9% to 58.1% of carbon graphite in the area. (note:grab samples are selective by nature and are unlikely to represent average grades on the property).

The Company is in the planning stage for an initial prospecting and mapping program expected to be followed by an EM survey of the area.

NEW APPOINTMENT

The Company is also pleased to announce that Mr. Jean Sebastien Lavallee P. Geo, one of the Optionors of the Champagne graphite property, is expected to join the Board of Directors of the Company upon TSX Venture Exchange acceptance of the Champagne Graphite property acquisition agreement.

Mr. Lavallee has been active in mining exploration since 1994. He is the vice president of Consul-Teck Exploration Inc., a consulting firm of Val-d’Or founded in 2003 that specializes in mining exploration in northern areas. Most of the firm’s mandates involve the generation and execution of projects in remote areas. Mr. Lavallee is also President & CEO of Critical Elements Corporation, a publicly listed company. Mr. Lavallee has acted as a geologist for many companies, including Uracan Resources Ltd., Agnico-Eagle Mines Ltd., Noranda Minerals Inc., Champion Minerals Inc., Matamec Explorations Inc., Argex Mining Inc., and others. Having been responsible for the planning and execution of many exploration programs in recent years, Mr. Lavallee has acquired solid experience in exploration project development.

ACQUISITION TERMS

Champagne graphite property

Canada Rare Earths has an option to earn a 100-per-cent interest in the Champagne graphite property from the vendors by making the following payments and issuing the following common shares to the vendors:

i) $60,000 on signing of the option agreement;

ii) $60,000 and 3,000,000 shares on TSX-V acceptance of this option agreement (the “Effective Date”);

iii) $150,000 on closing of project financing (maximum within 6 months from the Effective Date);

iv) 750,000 shares on that day which is 6 months from the Effective Date;

v) $45,000 and 750,000 shares on that day which is 12 months from the Effective Date;

vi) $45,000 and 750,000 shares on that day which is 18 months from the Effective Date; and

vii) $45,000 and 750,000 shares on that day which is 24 months from the Effective Date.

During the period which is 18 months from the effective date, Canada Rare Earth will complete a minimum of $500,000 of exploration on the Champagne graphite property, during the period which is month 18 to month 24 from the Effective Date, Canada Rare Earths will complete a minimum of $1,000,000 of exploration on the property and during the period which is month 24 to month 36 from Effective Date, Canada Rare Earths will complete a minimum of $1,500,000 of exploration on the property. The vendors will retain a 2-per-cent net smelter returns royalty on the property, 1% of which can be purchased by Canada Rare Earths for $1,000,000.

In addition, if the company files a National Instrument 43-101 compliant technical report that discloses a resource estimate with 200,000 tonnes or more of graphite content (at cut-off of 5%), the Company will pay to the Vendors cash consideration of $150,000 and issue 3,000,000 shares to the vendors. All payments are payable in equal proportions to the three Vendors.

Tetepisca North Property

Canada Rare Earths has an option to earn a 100-per-cent interest in the Tetepisca North Property from the vendor by making the following payments and issuing the following common shares to the vendor:

i) $25,000 and 250,000 shares on TSX-V acceptance of this agreement (the “Effective Date”); and

ii) 250,000 shares on the first anniversary of the initial share issuance.

The vendor will retain a 1.5-per-cent net milling royalty on the property, one-third (0.5%) of which can be purchased by Canada Rare Earths for $250,000.

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