Agoracom Blog

AGORACOM Welcomes Innolog Holdings (INHC: OTCQB); $5 Million in Revenue; Big US Government Clients

Posted by AGORACOM-JC at 9:25 AM on Wednesday, November 7th, 2012

AGORACOM is proud to announce Innolog Holdings Corp (INHC: OTCQB) as our newest client.

Innolog Holdings Corporation provides supply chain logistics and information technology solutions to clients in the public and private sectors. Clients include, General Dynamics: PM-J-AIT, U.S Army, U.S Navy, U.S Air Force and Lockheed Martin.

REAL REVENUES

  • 2012 Revenues (Estimated) $5,200,000
  • 2012 Revenues Year to date $2,514,402
  • 2011 Revenues $4,770,738

TRENDS WITHIN THE NATIONAL SECURITY COMMUNITY

  • Increased Spending on Defense and Intelligence to Combat Terrorist Threats
  • Increased Spending on Cyber Security
  • Continuing Focus on Information Sharing, Data Interoperability and Collaboration
  • Reliance on Technology Service Providers
  • Inherent Weaknesses of Federal Personnel Systems

Federal government spending on information technology increased from approximately $76 billion in federal fiscal year 2009 to $84 billion in federal fiscal year 2011 and is projected to increase to $91 billion in federal fiscal year 2016.

INNOLOG’s Supply Chain Logistics is a fully integrated life cycle solution: an end-to-end process to manage, control, and accelerate material and information across disparate functional and geographic boundaries to reduce supply chain costs and time of product and information flow from origin to consumption.

CORE CAPABILITIES

  • Integrated Logistics Systems
  • Asset Tracking and Management
  • Acquisition Management
  • Performance Based Logistics
  • Professional Engineering
  • Healthcare Solutions

We combine the right processes, IT solutions and intellectual capital to take independent variables and bring them together to create the best outcome for our customers. Further, we provide a proven methodology and embedded metrics to simplify the way you obtain mission critical information.

SIGNIFICANT EXPERIENCE

  • OperationSafe Commerce
  • Stock Funding of Depot Level Repairables
  • Strategic Airport Rollout Security (SARS) Program
  • Office of Deputy Chief of Staff, Logistics (G-4) – IT and knowledge Management
  • Naval Sea Systems Cmd/ Naval Research Lab – Electronic Warefare
  • Pentagon Renovation Warehousing

THE MARKET OPPORTUNITY

As a company with multiple service line offerings, INNOLOG operates in multiple markets. The broad primary target market is the federal government, with specific focus on the various federal agencies in need of INNOLOG services. While the overall Department of Defense budget is expected to remain flat at $1.4 trillion, we expect the market for the specialized services & expertise offered by INNOLOG to grow substantially over the next five years.
STOCK OWNERSHIP

  • Insiders: 37M Shares (72%)
  • Public Float: 15M Shares (28%)

12 Month Stock Chart

60-Second Profile / Corporate Website / Hub on AGORACOM

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Beyond Pencils and Green Technology: The Best Graphite Stocks (NGC, SGH, GPH, CHGI, GTI & GRPH)

Posted by AGORACOM-JC at 9:53 AM on Tuesday, November 6th, 2012

Graphite is an increasingly important technology component with graphite mining stocks including Northern Graphite Corp (NGC), Standard Graphite Corp (SGH), Graphite One Resources (GPH), China Carbon Graphite Group (CHGI) and Graphite Corp (GRPH) plus GrafTech International (GTI).

Nov 6, 2012 1:33:42 AM PST

Most investors are probably unfamiliar with graphite, a popular choice for electrodes because of its electric conductivity, in part because most of the publicly traded graphite stocks like Northern Graphite Corp (CVE: NGC), Standard Graphite Corp (CVE: SGH) and Graphite One Resources (CVE: GPH) trade on Canadian exchanges but there are a options for US investors, including China Carbon Graphite Group (PINK: CHGI), GrafTech International Ltd (NYSE: GTI) and Graphite Corp (PINK: GRPH). So why should investors be interested in graphite and hence, graphite stocks?

What is Graphite?

First a bit of history: Back in in 1789, the material known as graphite was named “graphite,” a derivative from an ancient Greek word meaning “to draw/write,” because it was already being used in pencils. In fact, most pencil “lead” is actually ground up graphite. Today, graphite is mostly used for batteries, brake linings, expanded graphite, foundry facings, lubricants, refractories and steelmaking. However, the real and potentially “unlimited” (up to a certain point) growth for graphite comes from potential new uses in the form of green initiatives like electric cars, fuel cells, lithium ion batteries (Note: There is 10 times more graphite than lithium in lithium-ion batteries plus it takes 30-40 times more graphite to make these batteries thanks to losses during processing), nuclear energy, solar energy and semiconductors. Likewise, the rise of China, Brazil, India and other emerging markets is creating strong demand for traditional graphite uses e.g. steel making and the automotive industry.

natural-graphite-uses.jpg

In addition, its worth noting that China produces around 70% of the world’s graphite but production and export growth there is leveling off, costs are rising and quality is falling. Hence, new sources of graphite will need to be developed – meaning there are opportunities for North American based mining stocks.

Price Range for +80 mesh, 94-97%C graphite (US$/tonne)

historical-prices.jpg

Canada Listed Graphite Stocks

Among the many small Canadian graphite stocks, the following are worth mentioning briefly as they also trade on the OTC:

Northern Graphite Corp (CVE: NGC). Also trading on the OTCBB under the symbol “NGPHF,” Northern Graphite Corp’s principal asset is the Bissett Creek graphite project that is located 100km east of North Bay, Ontario and 15km from the Trans Canada highway. Northern Graphite Corp believes it will be in a position to begin construction of the mine sometime in early 2013 but those plans will be subject to the availability of financing. On Monday, Northern Graphite Corp rose 1.27% to C$0.80 (NGC has a 52 week trading range of C$0.74 to C$3.47 a share) for a market cap of C$37.50 million plus the stock is down 14.9% since the start of the year and down 30.4% since April 2011 according to Google Finance.

Chart forNORTHERN GRAPHITE CORPORATION (NGC.V)

Standard Graphite Corp (CVE: SGH). Positioning itself as North America’s premier pure-play graphite exploration company that also trades on the OTC under the symbol “NGPHF,” Standard Graphite Corp controls a 100% interest in 12 prospective graphite properties within known graphite districts in both Quebec and Ontario. Standard Graphite Corp is currently undertaking an exploration plan and intends to soon commence construction on its Bissett Creek Mine, subject to financing. On Monday, Standard Graphite Corp closed at C$0.180 (SGH has a 52 week trading range of C$0.16 to C$1.07 a share) for a market cap of $3.99 million plus the stock is down 45.45% since last January.

Chart forSTANDARD GRAPHITE CORPORATION (SGH.V)

Graphite One Resources (CVE: GPH). Also trading on the OTCQX under the symbol “GPHOF,” Graphite One Resources is a mineral exploration company focused on its Graphite Creek Property located on the Seward Peninsula of Alaska. According to Graphite One Resources, the property offers significant potential for the discovery and development of a large-flake, high-grade graphite mineralization exposed at surface – meaning an open pit mine can be used. Graphite One Resources plans to advance Graphite Creek to a NI 43-101 compliant resource in 2013. On Monday, Graphite One Resources rose 3.03% to C$0.170 (GPH has a trading range of C$0.06 to C$0.40 a share) for a market cap of C$14.59 million plus the stock is up 54.5% since the start of the year and down 62.2% over the past five years.

Chart forGRAPHITE ONE RESOURCES INC (GPH.V)

US Listed Graphite Stocks

The few pure US listed graphite stocks that investors should be aware of include the following:

China Carbon Graphite Group (PINK: CHGI). Founded in 1986 as a state-owned carbon and graphite manufacturer and restructured in 2002 as a private enterprise. China Carbon Graphite Group is one of China’s leading wholesale suppliers of fine grain and high purity graphite and it’s a top overall producer of carbon and graphite products. There is not too much written about China Carbon Graphite Group but for what its worth given it’s a Chinese company, the company does issue regular earnings reports with the last one noting the ramp up of its higher margin business. On Friday (the last day CHGI traded), China Carbon Graphite Group fell 9.8% to $0.460 (CHGI has a 52 week trading range of $0.32 to $1.26 a share) for a market cap of $11.15 million plus the stock is up 2.2% since the start of the year and down 22.5% over the past five years according to Yahoo! Finance.

Chart forChina Carbon Graphite Group, Inc. (CHGI)

GrafTech International (NYSE: GTI). A world leader in graphite material science with more than 125 years of experience in the carbon and graphite industry, GrafTech International products are used in a variety of applications in various industries, including metal production, electronics, chemicals, aerospace and transportation. The last time GrafTech International reported earnings, shares soared because they beat expectations although revenue and net income both fell. Likewise, GrafTech International’s sales for its core industrial-materials business fell 14% but the smaller engineered-solutions segment (e.g. consumer products) rose 41%. In addition, GrafTech International’s bottom line had surged 46% in the second quarter thanks to higher prices for its graphite electrodes and needle coke. On Monday, GrafTech International rose 0.38% to $10.63 (GTI has a 52 week trading range of $8.45 to $17.69 a share) for a market cap of $1.43 billion plus the stock is down 22.1% since the start of the year and down 39.7% over the past five years.

Graphite Corp (PINK: GRPH). An exploration stage company focused on the evaluation, acquisition and development of domestic graphite mining opportunities, Graphite Corp believes the best alternate source of flake graphite is located in Alabama along with Montana. Hence, Graphite Corp is an investor’s best bet for a pure play graphite stock whose source of graphite is safely located in the USA should there be an interruption with supplies of graphite from China. Moreover, Graphite Corp has completed a total of $750,000 worth of equity financings to fund the acquisitions of its properties in Alabama and Montana and to begin initial work programs while budgets and exploration plans are being developed with work to beginning this quarter. Hence, Graphite Corp is a graphite stock investors should be watching. On Monday, Graphite Corp fell 2.56% to $0.760 (GRPH has a 52 week trading range of $0.20 to $1.05 a share) for a market cap $18.01 million plus the stock is down about 5% since last October.

Chart forGraphite Corp. (GRPH)

The Bottom Line. Irrespective of the economy, graphite will only meaning investors at least need to keep an eye on graphite stocks like Northern Graphite Corp, Standard Graphite Corp, Graphite One Resources, China Carbon Graphite Group, GrafTech International and Graphite Corp.

Source: http://www.smallcapnetwork.com/Beyond-Pencils-and-Green-Technology-The-Best-Graphite-Stocks-NGC-SGH-GPH-CHGI-GTI-GRPH/s/via/3414/article/view/p/mid/1/id/1046/

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Dacha Strategic Metals Says Tye Burt Isn’t Qualified After Losing $2.49 Billion For Kinross Shareholders – AGORACOM Agrees

Posted by AGORACOM at 10:40 AM on Monday, November 5th, 2012

It seems like Tye Burt can’t build a company on his own.  Rather he prefers to act as an opportunist, as was well documented in our very heated and public battle over the Kinross “take over” of Aurelian Resources.  Despite the unanimous “approval” of an Aurelian Board that happened to stock up on millions of options just before the Kinross “offer”, the AGORACOM community fought and battled Kinross into renewing their offer several times before obtaining the requisite number of shares … an industry first.

Tye was so confident, that he gave Aurelian investors a warrant to purchase Kinross shares at $32 … when it was trading around $18 … and attached a value to that warrant that made up a good portion of the ridiculous consideration Aurelian shareholders received.  So how did that work out? It never got over $24 and expired worthless:

Now, had Tye taken Aurelian and built an even better company for the benefit of all, you could argue the move was the right one.  Unfortunately, Tye was such a bad CEO that Kinross tossed him after – and I quote the Dacha press release below:

“Mr. Tye W. Burt was terminated as Chief Executive Officer of Kinross Gold Corp. after presiding over a reported US$2.49 billion loss related to the acquisition of Red Back Mining, the largest single loss in the company’s history.”

Here’s a little more imagery to help drive the Dacha point home:

Now, if you didn’t know these facts, you’d have to consider the possibility that Dacha management are simply saying whatever they can to keep their jobs … but now you know better when you read the following Dacha statements below:

  1. DISSIDENT NOMINEES CANNOT BE TRUSTED TO RUN YOUR COMPANY
  2. DISSIDENT NOMINEES ARE NOT QUALIFIED TO CREATE YOUR SHAREHOLDER VALUE
  3. DISSIDENT NOMINEES ARE NOT QUALIFIED TO CREATE YOUR SHAREHOLDER VALUE

The most troubling part of the press release below is that the dissident group which proposed him as a board member secretly acquired shares, despite good faith negotiations by Dacha management to agree to a compromise without a battle for the board.  This comes as no surprise to me.

Dacha shareholders be forewarned, if Tye gets his hands on Dacha by squeezing out this board, you stand to be the next ones to be squeezed out.

Last Friday we were notified that a group of four shareholders is trying to take control of your company and the value of your investment. The group, which includes funds managed by Goodwood Inc. (“Goodwood”) and Salida Capital L.P. (“Salida”), seeks to replace the entire Dacha board with eight connected nominees at the annual and special meeting of Dacha shareholders, to be held on November 28, 2012. In addition to Goodwood and Salida, the group also includes Takota Asset Management Inc. and Longford Energy Inc. Their actions have launched a costly and distracting proxy contest to advance their own agenda rather than the best interests of the majority of Dacha’s shareholders or Dacha.

Your board opposes this initiative for the reasons detailed in this Circular. Join us in voting the BLUE Proxy to stop Goodwood and Salida. We believe Goodwood and Salida are attempting a coercive takeover of Dacha and its valuable assets, without paying shareholders the premium they are owed.

DISSIDENT NOMINEES CANNOT BE TRUSTED TO RUN YOUR COMPANY

The rare earth element (REE) business is a highly specialized and complex international market, with no open and transparent exchange supporting REE transactions. The market relies on trusted relationships with professionals who understand the sophisticated chemistry associated with these metals as counterparties contract directly with one another to purchase rare earth elements primarily from specific plants and suppliers who have met stringent pre-qualification. Additionally, the market has high regulatory barriers to entry, with most of its trade being conducted primarily via Chinese state owned enterprises that hold a limited number of export quotas to remove rare earths from the country. Sourcing rare earths in China for inventory is very difficult and requires a combination of chemical expertise, relationships, knowledge and experience that Goodwood, Salida and their director nominees clearly lack.

Your board and management team understands the intricacies of this highly specialized international marketplace and has the proven expertise and experience to maximize shareholder value through investment in REE. Very few individuals in the world can do this type of work and that is the competitive advantage of Dacha’s current management team. Goodwood, Salida and their nominees do not have the experience, expertise or relationships to manage or grow the assets that have been diligently built by Dacha’s highly-experienced management team.

DISSIDENT NOMINEES ARE NOT QUALIFIED TO CREATE YOUR SHAREHOLDER VALUE

Members of the dissident slate have in the past demonstrated self-serving activism, value destruction, and strategic miscues. Unsuccessful investment strategies have left Goodwood and Salida with a limited ability to raise investor funds and with a motivation to instead raid cash rich public companies. We fear that Goodwood, Salida and the other members of the dissident group intend to do the same with Dacha, and seize the value that rightly belongs to our shareholders without paying anything. To advance this goal, Mr. Puccetti, Goodwood’s founder, Chairman and Chief Investment Officer, with the support of Salida, has put forward a slate of connected nominees with no track record in the REE industry, with demonstrated underperformance and who are not necessarily motivated to act in the best interests of the shareholders of Dacha as a whole.

Notably:

Mr. Tye W. Burt was terminated as Chief Executive Officer of Kinross Gold Corp. after presiding over a reported US$2.49 billion loss related to the acquisition of Red Back Mining, the largest single loss in the company’s history.

Mr. Ian W. Delaney has several connections with Goodwood and is reportedly currently barred from entering the United States because of dealings with a dictatorship.

Mr. Peter H. Puccetti is the founder, Chairman and Chief Investment Officer of Goodwood Inc., a Toronto-based hedge fund whose Goodwood Fund A, B, Capital and 2.0 each have negative returns for the three and five year period, underperforming the S&P/TSX composite TRI, which has yielded positive returns for those periods.

Mr. Timothy E. Thorsteinson presided over 97.2% stock price decline as CEO of Enablence Technologies, a former Goodwood portfolio investment.

We do not believe that the members of the dissidents’ slate possess the expertise to lead Dacha into the future and enhance total shareholder value within the dynamic nature of the REE industry.

DISSIDENTS HAVE ACQUIRED SHARES WITHOUT DISCLOSURE

Following a good faith settlement with Goodwood and certain dissident nominees over Longford, Forbes & Manhattan Inc. (“Forbes & Manhattan”) was prepared to work constructively with Goodwood for the benefit of all shareholders. Unfortunately, Goodwood put up a false front of cooperation while simultaneously and secretly, along with Salida, acquiring shares of Dacha. Apparently, the dissident group rapidly accumulated a stake of 31.5% without any disclosure of its purchase.

DACHA AND FORBES & MANHATTAN – A TRACK RECORD OF CREATING VALUE

Dacha, a Forbes & Manhattan company, has a history of creating value for shareholders in a volatile market. Dacha has posted a 93% return on sales transactions and a 135% return on investment capital since January 2010, and has done so while aggressively managing SG&A to levels that are comparable with its peers.

Together with Forbes & Manhattan, whose investment model combines industry leading expertise, exceptional capital markets access and the strongest deal flow for resource assets to produce consistently strong returns, Dacha is focused on building on this record to generate incremental value for all shareholders.

Forbes & Manhattan’s active management approach, which mitigates risk through hands-on involvement competitively positions its partner companies through more efficient approaches to general and administrative expenses. Forbes & Manhattan’s strategies significantly decrease costs, such that G&A of those companies are in line with, if not better than, their competitors. The track record shows that by bringing deep, hands-on expertise in geology and mining engineering, capital markets expertise, and by providing portfolio companies with economies of scale, Forbes & Manhattan enables the development of assets that might not have been developed as stand-alone companies with traditional management structures.

YOUR HIGHLY QUALIFIED AND EXPERIENCED MANAGEMENT NOMINEES

Dacha’s highly qualified incumbent director nominees have the necessary skills and knowledge to maximize the rare earth assets that the company currently holds, grow net asset value and drive share price appreciation. In addition, management has nominated for election as a director of Dacha, Mr. Jim Rogers, a commodities investment expert, author and a financial commentator who has been a successful international investor since 1980. Mr. Rogers will be appointed non-executive Chairman following the meeting, replacing Mr. Stan Bharti who will not stand for re-election.

Mr. Rogers has frequently been featured in Time, The Washington Post, The New York Times, Barron’s, Forbes, Fortune, The Wall Street Journal and The Financial Times among others. He has been a regular columnist at WORTH Magazine since 1995, and a regular commentator on CNBC since 1998. Mr. Rogers has written four books on investment, including ‘Investment Biker: On the Road with Jim Rogers’ (1994), ‘Adventure Capitalist: The Ultimate Road Trip’ (2003), ‘Hot Commodities: How Anyone Can Invest Profitably in the World’s Best Market’ (2005) and ‘A Gift to My Children: A Father’s Lessons for Life and Investing’ (2009). Mr. Rogers holds a B.A. in History from Yale University and a B.A. and M.A. in Politics, Economics and Philosophy from Oxford University.

Dacha also plans to nominate Hon. J. Trevor Eyton, David S. Warner and Ken Taylor. The incumbent management nominees are G. Scott Moore, President and Chief Executive Officer; Alastair Neill P.Eng, MBA, Executive Vice President and Director; and General (Ret) Ron Hite, Director.

Dacha encourages shareholders to carefully review its proxy circular and other materials and vote only their BLUE Proxy by no later than Monday, November 26, 2012 at 10:00 a.m. (Toronto time) in advance of the proxy voting deadline. If you have any questions and/or need assistance in voting your shares, please call Kingsdale Shareholder Services at 1-866-229-8263 toll-free in North America, or 1-416-867-2272 outside of North America (collect calls accepted).

Do not let Goodwood and Salida’s representatives take the value that belongs to you! The highly-qualified and experienced Dacha board of directors is completely dedicated to maximizing shareholder value and strengthening the company. We encourage you to vote for management’s nominees and look forward to your support.

“G. Scott Moore”

G. Scott Moore

President and CEO

Dacha Strategic Metals Inc.

About Dacha

Dacha Strategic Metals Inc. is an investment company focused on the acquisition, storage and trading of strategic metals with a primary focus on Rare Earth Elements. Dacha is in the unique position of holding a commercial stockpile of Physical Rare Earth Elements. Its shares are listed on the TSX Venture Exchange under the symbol “DSM” and on the OTCQX exchange under the symbol “DCHAF”.

Except for statements of historical fact relating to the Company, certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the Company’s ability to trade in rare earth elements, the realization value of Dacha’s physical inventory portfolio, proposed investment strategy of the Company, and general investment and market trends. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Dacha to be materially different from those expressed or implied by such forward-looking information. Although management of Dacha has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Dacha does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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

Posted in Aurelian Resources Revolt, Dacha Strategic Metals, Shareholder Revolt, Small-Cap Investor Revolts, Tye Burt | Comments Off on Dacha Strategic Metals Says Tye Burt Isn’t Qualified After Losing $2.49 Billion For Kinross Shareholders – AGORACOM Agrees

Gary Economo Talks Focus Graphite’s Lac Knife Graphite PEA

Posted by AGORACOM-JC at 12:34 PM on Friday, November 2nd, 2012

Focus Graphite Inc V.FMS announced October 29 a preliminary economic assessment of its Lac Knife Graphite Project in Quebec. The PEA forecasts a mine life of 20 years with overall production of six million tonnes of mill feed grading 15.66% Cgr (carbon in graphite or graphitic carbon) with average graphite recovery of 91.3%. Life-of-mine production of 92% Cgr will be 928,000 tonnes at $435 per tonne. Thermal purification will enable the upgrade of approximately 40% of primary concentrate to 99.99% Cgr with inherent purification losses of 15%.

Based on per-tonne prices of $10,000 for battery grade (>99.95% Cgr, +100 mesh), $1,300 for medium grade (>90% Cgr, -100+200 mesh) and $800 for fine grade (>80% Cgr, -200 mesh), the pretax net present value (NPV) is $246 million (at a 10% discount rate); the pretax internal rate of return (IRR) is 32%; pretax undiscounted cashflow is $926 million; total net revenue is $3.7 billion; the pretax payback period is 2.8 years; and the initial CAPEX is $154 million with a 25% contingency.

President/CEO Gary Economo was interviewed by Kevin Michael Grace October 29.

RW: In your press release, you say that this is a great day for the Canadian graphite industry. Can you expand on that?

GE: Canadian graphite producers have been producing about only 20,000 tonnes a year, which is a very small percentage of world demand. I think having a graphite deposit that can potentially go into production in two to three years at the quality and volume that Lac Knife can produce will start to put Canada on the map as a major supplier of high-quality graphite.

RW: What do you consider the high points of your PEA?

GE: It’s a 32% pretax IRR, which is a very good number. The NPV is $246 million, again a nice number. The payback on this is about 2.8 years, and overall it’s a fairly easily financeable capital cost of $154 million. Our cost per tonne is $435, and we would sell that for $1,300 to $1,500. We’re able to keep those costs really low due to the fact that we have some of the best grades in the world. So it’s a very special deposit we have our hands on. We’ll be one of the highest-grade, lowest-cost producers of graphite in the world.

RW: How do you expect to fund the CAPEX?

GE: There are three different ways that we’ve been working on. Equity, convertible debt and some debt. And some of our offtake partners will be putting up deposits.

RW: Simon Moores says that how a company plans to process graphite and get it to the market will make or break it. How are you going to process it and get it to the market?

GE: We’ll be using fairly standard processing techniques, which will include crushing and flotation. That’s our plan, for the time being. We’re also working on some other technologies to enhance the quality of the carbon content in the ore before we actually put it through the flotation circuit. That will continue to reduce our costs on a per-tonne basis.

RW: Your press release talks about purification to 99.99%. How do you accomplish this, and what is the significance?

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GE: There are a number of high-tech applications that use an extremely high-purity graphite mixture, such as the anodes for lithium-ion batteries. We have a licensing agreement with Hydro-Québec for technology to purify the material to 99.99%, but that is not part of this PEA. That will come later. In the meantime, a third-party company will thermally purify this material for us on a toll basis.

RW: You are also taking measures to reduce the environmental footprint of the project?

GE: The upfront process will reduce the amount of chemicals generated.

RW: Over the last year, graphite-company share prices have been quite inconsistent. How do you see the prospects for graphite in the near future?

GE: The market got a little bit excited by the electrification of the transportation industry and the numbers and projections being thrown around for graphite usage in that sector. This enthusiasm drove some pricing to places where maybe it shouldn’t have been. But the price of graphite has stabilized at a level that really makes sense for the industry. Companies that have good grades and can profit from existing price levels should do extremely well.

There will be less graphite produced in China, which should drive prices higher. But with deposits like ours coming onstream in a few years, I think we’ll offset that shortage. Graphite-demand growth should remain fairly stable at 8% to 10% per year.

RW: What is your path to production?

GE: Right now, the most important thing for us is to finish off all our permitting and get our offtake agreements signed and publicized. That will drive financing for this project. We expect to be able to do that within the next 24 months.

RW: How much cash do you have? What is your burn rate?

GE: We have approximately $20 million in cash, and we burn about $220,000 a month.

RW: Can you talk briefly about your other projects?

GE: We have a rare-earth project in Quebec we own 50/50 with SOQUEM called Kwyjibo.

RW: Is that a Simpsons joke?

GE: That’s where the name came from, yes.

RW: And your other one is in Brazil?

GE: No, the other one is actually in the Labrador Trough and it is an IOCG-type deposit [iron oxide copper gold ore]. The one you’re referring to in Brazil is the Canindé graphite project. We’re just finalizing an agreement with Lara Exploration V.LRA to acquire 60% of that.

RW: Where do you see your company in two years?

GE: We’ll have spun out or divested anything that is not graphite related. Hopefully, if the permitting gods in Quebec work to the schedules that we believe they can, we’ll be in production at Lac Knife, and we’ll have our facility set up in Quebec to produce high-purity graphite.

Source: http://business.financialpost.com/2012/11/01/gary-economo-talks-focus-graphites-lac-knife-graphite-pea/

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Focus Graphite Retains Terrapex Environnement to Assist With Federal and Provincial Project Permitting for Lac Knife

Posted by AGORACOM-JC at 4:46 PM on Thursday, November 1st, 2012

OTTAWA, ONTARIO–(Nov. 1, 2012) – Focus Graphite Inc. (“Focus” or the “Company”) (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) announces it has retained the services of Québec-based Terrapex Environnement Ltd. (“TERRAPEX”) to assist the Company in obtaining the required federal, provincial and municipal permits and authorisation to develop the Lac Knife graphite project (“Lac Knife” or the “Project”) towards the goal of full commercial production. The Lac Knife project is located in the Côte-Nord region of northeastern Québec, 27 km south-southwest of the iron-mining town of Fermont.

The decision to commence permitting procedures follows one of the recommendations set forth in the Preliminary Economic Assessment (“PEA”) of the Lac Knife project, the results of which were announced by the Company on October 29th, 2012. The PEA which was prepared by Roscoe Postle Associates Inc. (“RPA”), in collaboration with Soutex Inc., demonstrates that the Lac Knife project has robust economics and an excellent potential to become a profitable producer of graphite. The PEA is available on the Company’s Website at www.focusgraphite.com and on SEDAR at www.sedar.com.

Québec mine permitting process

The mine permitting process in Québec comprises of various Federal, Provincial and municipal authorizations for mine pre-development, permitting (Mining Lease application and mine closure plans per the requirements of the Québec Mining Act), road construction, mine construction, ore processing, camp installation and other considerations all of which lead to a request to the Ministère du Développement Durable, de l’Environnement, de la Faune et des Parcs du Québec (“MDDEFP”) for a Global Project Authorisation or Certificat d’Autorisation (“CA”) for the Project, per the requirements of the Québec Environmental Quality Act. Terrapex’ mandate is to provide strategic and technical support to Focus at all government and municipal regulatory levels, and for all of the permits and authorisations required to advance the Lac Knife graphite project towards commercial production. To this end, Terrapex has already prepared a baseline regulatory framework for the Project which outlines all of the procedures the Company must follow in order to comply with applicable regulations and obtain the CA for the project.

As part of the permitting process, Focus has undertaken environmental auditing and baseline studies, advanced metallurgical testing, mine tailings and waste rocks characterisation and archeology and biodiversity studies which will lead to a full environmental and social impact study to be completed by year-end in 2013.

Gary Economo, President and CEO of Focus Graphite, stated, “The hiring of Terrapex to assist Focus in its endeavours to obtain all regulatory approvals for Lac Knife together with the start of environmental and social impact studies are further evidence of our commitment to expedite the development of the Project towards our goal of full commercial graphite production”.

About Terrapex Environnement Ltd.

Founded in 1995, TERRAPEX (www.terrapex.ca) is a leading provider of specialised environmental and earth sciences services to the Québec mining industry, federal and provincial government agencies and municipal authorities. Active throughout Québec with offices in Brossard, Québec City, and Richmond and with a team of 50 professionals, TERRAPEX has completed over 7,000 projects to date spanning the fields of geology, mineral exploration, geotechnical engineering, hydrogeology, biological and environmental studies, site decontamination and agronomy.

About Focus Graphite

Focus Graphite Inc. is an emerging mid-tier junior mining development company, a technology solutions supplier and a business innovator. Focus is the owner of the Lac Knife graphite deposit located in the Côte-Nord region of northeastern Québec. The Lac Knife project hosts a NI 43-101 compliant Measured and Indicated mineral resource of 4.972 Mt grading 15.7% carbon as crystalline graphite with an additional Inferred mineral resource of 3.000 Mt grading 15.6% crystalline graphite. Focus’ goal is to assume an industry leadership position by becoming a low-cost producer of technology-grade graphite. On October 29th, 2012 the Company released the results of a Preliminary Economic Analysis (“PEA”) of the Lac Knife project which demonstrates that the project has robust economics and excellent potential to become a profitable producer of graphite. As a technology-oriented enterprise with a view to building long-term, sustainable shareholder value, Focus Graphite is also investing in the development of graphene applications and patents through Grafoid Inc.

This press release has been reviewed by Marc-André Bernier, M.Sc., P.Geo. (Ontario and Québec), Technical Adviser and a Director of Focus, and a Qualified Person under National Instrument (NI) 43-101.

Forward Looking Statements – Disclaimer

This news release may contain forward looking statements, being statements which are not historical facts, and discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company’s expectations are in our documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com Focus Graphite disclaims any intention or obligation to revise or update such 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

Mr. Gary Economo
President and Chief Executive Officer
613-691-1091, ext. 101
[email protected]
www.focusgraphite.com

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AGORACOM Hits 320 Million Page Views On 5 Year Anniversary

Posted by AGORACOM at 11:14 AM on Thursday, November 1st, 2012

I would first like to welcome all of our new CEO’s and IRO’s added to our list since our last newsletter in October.

We are very pleased to announce that AGORACOM continues to hit significant traffic milestones in the small-cap space, with more than 319,500,000 page views and 32,000,000 visits to AGORACOM in our first 5 years of tracking traffic through Google. These traffic figures are even more meaningful given the significant macro economic issues affecting small-cap stocks during the financial crisis of 2008 – 2009, as well as, market turmoil over the past year.

 AGORACOM REWARDED FOR FOCUS ON QUALITY VS QUANTITY

Having identified that small-cap companies were being hurt by unmonitored and frankly, crazy, postings on popular but unmonitored sites around the web, AGORACOM was built on the philosophy of focusing on:

  • High-Quality Small-Cap Companies
  • High-Quality Small-Cap Discussion

More than just lip service, we implemented the first and only investor monitored small-cap community that gave high-ranking investors the ability to delete posts containing spam, profanity and unfounded rumors – all the things that used to hurt serious small-cap companies.

As a result, AGORACOM now ranks amongst the top 0.3% of all websites on the planet.

As always, here is the official Google Analytics snapshot for the period

Analytics31Oct2007-31Oct2012

WHY AGORACOM IS YOUR INVESTOR RELATIONS SOLUTION

1.  Serious Small-Cap Investors

In addition to the traffic numbers above, each small-cap investor reads an average of 9.8 pages on every visit and stays on the site for 8:20 per visit … these small-cap investors are engaged in serious research.

2.  Faster, Cheaper, Way Better

Our programs are cheaper than traditional investor relations … while directly reaching your target market of investors within 24 hours of starting your program.

 

IR SOLUTION FOR TSX LISTED COMPANIES

If a picture is worth 1,000 words, TSX companies will love what the image says below.  TSX Companies Can Now Post Investor Relations Messages To AGORACOM & Simultaneously Post To The Following Tier-1 Finance Sites.  No other IR solution on the continent can combine this audience with our service levels.

AgoracomServices

MARKETING SOLUTIONS FOR TSX VENTURE LISTED COMPANIES – SHARES FOR SERVICES

More than anything else, TSX Venture companies need to raise awareness.  The massive AGORACOM network puts your company in front of millions of investors, generating ~ 1,000 prospective investor visits per month.

More importantly, with our new compliant Shares For Services program, you can conserve valuable cash that is already allocated for your operations.  Win-Win.

CONTACT US TO DISCUSS YOUR ONLINE IR NEEDS AND OUR POTENTIAL SOLUTIONS

I thank-you for reading and trust you found this information to be helpful.  If you’re ready to step into real and sustainable online investor relations for 2013 and beyond, please contact me below.

Best Regards,

George Tsiolis, LL.B

Founder & President

AGORACOM Investor Relations

Tsiolis

 

 

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Lomiko to Present Graphite Discovery to German Investors at the International Precious Metals and Commodities Show in Munich, Germany

Posted by AGORACOM-JC at 8:46 AM on Thursday, November 1st, 2012

Vancouver BC – LOMIKO METALS INC. (TSX-V:LMR, OTC:LMRMF, FSE:DH8B) (the “Company”) will attend and present to investors at the Internationale Edelmetall & Rohstoffmesse (International Precious Metals and Commodities Show) located in Olympiapark, Munich, Germany November 2-3, 2012.

Lomiko Advsior Dietmar Siebholz and the German representative for GATA will begiving presentations on graphene and graphite juniors and will be joined by A. Paul Gill, CEO of Lomiko for a part of the presentation on graphite juniors.

Lomiko will also be an exhibitor at the show and representatives of the company will be meeting retail and institutional investors at Booth 2.46 to discuss the first drill results from Quatre Milles East.

The Company is very encouraged by these first results that confirm wider zones than expected from current drilling than historical results with mineralization starting near surface. This bodes well for the concept of an open pit scenario.

Highlights

-QM 12-04 5.00 m to 75.00 m – 70.00 meters of 2.17 Cg%

including 12.50 meters of 4.58 Cg%

-QM 12-03 3.50 m to 54.62 m – 51.12 meters of 1.48 Cg%

-QM 12-06 40.00 m to 71.50 m 31.50 meters of 1.94 Cg%

Also, these wider zones contain some areas with higher grade graphite. Please see the table below for detail results.

 ----------------------------------------------------------------
 |        |       |        |       |   |Mineralization    |     |
 |--------------------------------------------------------------|
 |Drill   |Easting|Northing|Azimuth|Dip|From |To   |Length|Cg % |
 |Hole #  |(UTM)  |(UTM)   |(°)    |(°)|(m)  |(m)  |along |     |
 |        |       |        |       |   |     |     |the   |     |
 |        |       |        |       |   |     |     |core  |     |
 |--------------------------------------------------------------|
 |QM-12-01|496666 |5168535 |140    |-80|41.88|44.13|2.25  |1.35 |
 |        |-----------------------------------------------------|
 |        |       |        |       |   |66.40|69.40|3.00  |2.23 |
 |--------------------------------------------------------------|
 |QM-12-02|496628 |5168430 |140    |-80|14.00|20.00|6.00  |2.19 |
 |        |-----------------------------------------------------|
 |        |INCLUDES:                   |15.50|18.50|3.00  |2.85 |
 |        |-----------------------------------------------------|
 |        |       |        |       |   |23.00|30.50|7.50  |1.50 |
 |        |-----------------------------------------------------|
 |        |       |        |       |   |52.60|58.00|5.40  |1.44 |
 |--------------------------------------------------------------|
 |QM-12-03|496532 |5168403 |140    |-80|3.50 |54.62|51.12 |     |
 |*       |       |        |       |   |     |     |      |1.48*|
 |        |-----------------------------------------------------|
 |        |INCLUDES:                   |3.50 |14.90|11.40 |1.34 |
 |        |-----------------------------------------------------|
 |        |INCLUDES:                   |22.10|36.40|14.30 |1.51 |
 |        |-----------------------------------------------------|
 |        |INCLUDES:                   |39.12|54.62|15.50 |2.39 |
 |--------------------------------------------------------------|
 |QM-12-04|496511 |5168143 |140    |-80|5.00 |75.00|70.00 |2.17 |
 |        |-----------------------------------------------------|
 |        |       |        |       |   |10.40|27.40|17.00 |3.78 |
 |        |-----------------------------------------------------|
 |        |       |        |       |   |31.90|47.55|15.65 |2.01 |
 |        |-----------------------------------------------------|
 |        |       |        |       |   |53.90|75.00|21.10 |2.19 |
 |        |-----------------------------------------------------|
 |        |       |        |       |   |10.40|75.00|64.60 |2.28 |
 |        |-----------------------------------------------------|
 |        |INCLUDES:                   |13.40|25.90|12.50 |4.58 |
 |        |-----------------------------------------------------|
 |        |INCLUDES:                   |31.90|47.55|15.65 |2.01 |
 |        |-----------------------------------------------------|
 |        |INCLUDES:                   |53.90|75.00|21.10 |2.19 |
 |--------------------------------------------------------------|
 |QM-12-05|496861 |5168485 |340    |-80|3.65 |10.15|6.50  |2.19 |
 |        |-----------------------------------------------------|
 |        |       |        |       |   |57.00|60.17|3.17  |2.49 |
 |        |-----------------------------------------------------|
 |        |       |        |       |   |63.00|66.00|3.00  |1.54 |
 |--------------------------------------------------------------|
 |QM-12-06|496929 |5168569 |320    |-80|40.00|71.50|31.50 |1.94 |
 |        |-----------------------------------------------------|
 |        |INCLUDES:                   |40.00|56.50|16.50 |2.67 |
 |        |-----------------------------------------------------|
 |        |INCLUDES:                   |40.00|67.00|27.00 |2.11 |
 ----------------------------------------------------------------

* There was no sampling done from 15.9m to 21.10m and from 37.4m to 38.12m. Composite value was calculated with 0 value for these intervals

-Drill hole intervals reported herein are not true widths but reported along core.

-Drill hole intervals are weight-averaged based on the sample width.

-No internal cut-off grades were used in the reported intervals.

Acme Metallurgical Limited of British Columbia conducted analysis

-Whole coarse sample dried and crushed to 2 mm and homogenized.

-100 grams aliquot (sub-sample) split out and pulverized.

-5 grams of the pulverized pulp was then leached with dilute hydrochloric acid

-Leach residue is roasted at 450 degrees Celsius and 1200 degrees Celsius.

-Weights were measured between double ignitions.

Quality Control and Assurance Procedure

-Duplicate and internal standard samples were taken every tenth sample

-If any duplicate or standard results exceeded95% confidence limit, the entire ten sample batch was repeated.

The previous drilling by Graphicor at Quatre Milles East indicated a near-surface, road-accessible target which was intersected by multiple drill holes during historic, non-NI 43-101 compliant drilling. The available information has been complied into a NI 43-101 report which will be the template for describing a resource if the drilling program is successful. It is available at:

http://www.lomiko.com/properties/quatre.html

Graphite Facts

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

-Southwestern Quebec 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.

-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 East Property.

Lomiko’s Quatre Milles East Graphite Property

The Quatre Milles East 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 in the summer of 1989 based on the results of a regional helicopter-borne EM survey. The underlying geology consists of intercalated biotite gneiss, biotite feldspar gneiss, marble, quartzite and calc-silicate lithologies of the Central Metasedimentary Belt of the Grenville Province.

Historical Highlights

Graphicor completed reconnaissance mapping and prospecting as well as ground geophysics and a 26 hole diamond drill program totaling 1,625 metres. The work identified several conductive trends in the central portion of the property and at least three, relatively flat lying graphitic beds. Three surface samples were collected and analyzed returning results of 14.16% Cgf, 18.06% Cgf and 20.35% Cgf. 23 of the initial 26 drill holes intersected graphite concentrations with graphite concentration in range of 4.69% in hole Q90-1 to a highlight of 8.07% Cgf over 28.60 metres in hole Q90-7. The highest individual assay was reported in hole Q90-10 reporting 15.48% Cgf over 0.50 metres. A table of results from the 43-101 indicates:

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

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

Graphite Market

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

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

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

-Demand for graphite is expected to rise as electric vehicles and lithium battery technology are adopted, nuclear reactors are built in China, and if fuel cells and 5rapheme 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).

Jean-Sebastien Lavallée (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

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

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Canadian Platinum Announces Large Flake Results on Graphite Samples from Brabrant Property

Posted by AGORACOM-JC at 11:20 AM on Wednesday, October 31st, 2012

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

Canadian Platinum Corp. (“CPC” or the “Company”) (TSX VENTURE:CPC) is pleased to announce the completion of flake size analysis of graphitic carbon from the samples taken from the Brabrant Property. The Brabrant Property consists of 5 mineral claims totaling 20,874 ha in the Brabant Lake area of Saskatchewan which cover several zones of graphite mineralization. The property lies south of Saskatchewan Highway 905 and is crossed by the Sask Power Hydroelectric line that extends from Island Falls to Rabbit Lake.

The initial prospecting program identified 3 zones of graphite mineralization in the north, west and southeast areas of Brabant Lake with graphite grades ranging from 1.08% to 44.5% (see CPC News Release September 10, 2012,
http://www.canadianplatinumcorp.com/investor/newsreleases/news_release091012.html). The most significant results from the preliminary prospecting and geological evaluation of the property are the Ben showing with grades ranging from 11.2% to 44.5% graphite in meta-sedimentary gneiss.

Further analyses of the samples were undertaken at the SRC Geoanalytical Laboratory in Saskatoon in order to establish the flake graphite content of each size fraction. Each sample was separated into the +0.5mm, +0.3mm, +0.18mm and -0.18 after which the samples were subjected to an HCl leach, ignited at 550 degrees C and the residue analyzed in a LECO SC144DR c/S Analyzer in order to establish the percentage of graphitic carbon in each size fraction. Analysis of the coarse size fractions (+0.5 and +0.3 mm) indicates that much of the graphite is in the coarse size fractions (Table 1). The results of these analyses are given in Table 1.

Table 1
Sample Number Fraction Weight gms Mesh Size (ASTM-E11 No.) C Wt % Org C Wt % Graphite Wt % Comments
589103 (+0.5mm) 2683.7 +35 20 0.92 19.2 Ben Showing
589103 (+0.3mm) 0.9 +50 12.9 N/A 11.5
589103 (+0.18mm) 319.7 +80 19.2 0.24 17.1
589103 (-0.18mm) 477.5 -80 15.9 0.85 13.8
688101 (+0.5mm) 665.2 +35 1.35 0.11 1.23 North Brabant Lake
688101 (+0.3mm) 413 +50 3.07 0.12 2.87
688101 (+0.18mm) 419.5 +80 2.93 0.39 2.54
688101 (-0.18mm) 505.3 -80 1.62 0.13 1.49
688102 (+0.5mm) 586.1 +35 2 0.08 1.92 North Brabant Lake
688102 (+0.3mm) 255.4 +50 3.49 0.07 3.32
688102 (+0.18mm) 238 +80 4.34 0.35 3.92
688102 (-0.18mm) 559.5 -80 4.41 2.21 2.12
688105 (+0.5mm) 498.2 +35 2.36 0.75 1.61 North Brabant Lake
688105 (+0.3mm) 185.1 +50 2.07 0.32 1.66
688105 (+0.18mm) 164 +80 2.6 0.27 2.33
688105 (-0.18mm) 435.5 -80 1.94 0.24 1.69
688111 (+0.5mm) 595.1 +35 1.9 0.22 1.68 North Brabant Lake
688111 (+0.3mm) 167.7 +50 3.87 0.02 3.49
688111 (+0.18mm) 134.9 +80 4.14 0.09 4.01
688111 (-0.18mm) 335.4 -80 2.01 0.02 1.87
688112 (+0.5mm) 682.6 +35 50.9 3.93 45.5 Ben Showing
688112 (+0.3mm) 101.9 +50 50.7 0.62 47.8
688112 (+0.18mm) 70.3 +80 50.7 3.38 46.6
688112 (-0.18mm) 139.6 -80 43.1 0.95 40.2
688113 (+0.5mm) 408.6 +35 47.7 3.57 43.5 Ben Showing
688113 (+0.3mm) 64.1 +50 40.4 3.54 37.8
688113 (+0.18mm) 44.2 +80 36.1 1.72 33.4
688113 (-0.18mm) 90.9 -80 30.3 1.51 27.8
688114 (+0.5mm) 1582.6 +35 52.3 3.63 45.6 Ben Showing
688114 (+0.3mm) 270 +50 52.5 3.56 48.4
688114 (+0.18mm) 194.4 +80 50.9 4.23 45.8
688114 (-0.18mm) 444.3 -80 44.1 1.38 43
688115 (+0.5mm) 1237.4 +35 11.9 0.52 11.2 Ben Showing
688115 (+0.3mm) 497.3 +50 16.9 1.62 14.7
688115 (+0.18mm) 290.1 +80 11.2 0.81 10.1
688115 (-0.18mm) 444.3 -80 6.9 1.02 6.42
688116 (+0.5mm) 830.3 +35 0.98 0.47 0.92 West Shore Brabant Lake
688116 (+0.3mm) 452.1 +50 0.62 0.15 0.35
688116 (+0.18mm) 391.2 +80 0.63 0.08 0.52
688116 (-0.18mm) 689.1 -80 0.45 0.21 0.16

The current value of each of these size fractions is given in Table 2:

Table 2
Crystalline Graphite Prices ( “Industrial Minerals Magazine” October 2012)
Crystalline Graphite
FCL CIF main European port,
Medium, 85-87% C, +100-80 mesh $ 1000-1300
Fine, 90%C, -100 mesh $ 900-1100
Medium flake 90% C, +100-80 mesh $ 1150-1450
Large flake, 90% C, +80 mesh $ 1400-2000
Fine, 94-97% C, -100 mesh $ 1150-1450
Medium, 94-97% C, +100-80 mesh $ 1100-1700
Large flake 94-97% C, +80 mesh CIF $ 1300-1800

Mr. Todd Montgomery, President and CEO of the Company commenting on the results said, “This analysis indicates to us that our samples are composed of exciting graphite values and that it is primarily high value, large flake material. We look forward to further exploring the property.” Plans to further delineate the extent of the graphitic zones of the Brabrant Property include a VLF and magnetic geophysical survey expected to commence in mid November and a diamond core drill program planned for early 2013.

John G. Pearson, P.Geo, a 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 Provide (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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Posted in Graphite | Comments Off on Canadian Platinum Announces Large Flake Results on Graphite Samples from Brabrant Property

Focus Graphite Announces Positive Preliminary Economic Assessment of Lac Knife Project

Posted by AGORACOM-JC at 12:18 PM on Monday, October 29th, 2012

OTTAWA, ONTARIO–(Oct. 29, 2012) – Focus Graphite Inc. (“Focus” or the “Company”) (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) announces positive results of the Preliminary Economic Assessment (“PEA”) on its Lac Knife Graphite Project (“Lac Knife” or the “Project”). The PEA was prepared by Roscoe Postle Associates Inc. (“RPA”), in collaboration with Soutex Inc. (“Soutex” – responsible for metallurgy and mineral processing) and demonstrates that the Project has robust economics and excellent potential to become a profitable producer of graphite. Highlights of the PEA are summarized below:

Operational Highlights:

  • Proposed Life of Mine production of 6.0 million tonnes (Mt) of mill feed at a grade of 15.66% graphitic carbon (Cgr), based on the initial Mineral Resource estimate disclosed on January 19, 2012
  • Mine Life of 20 years, open pit operation at 300,000 tonnes per year
  • Processing through a sequence of crushing, grinding, flotation, magnetic separation, thickening and drying, producing a primary concentrate of graphite of various grades and flake sizes
  • Tailings directed through sulfide flotation circuit in order to minimize the volume of acid-generating residues and to enable proper management of both acid-generating tailings and waste rock within a unique disposal site
  • Average graphite recovery of 91.3% at Lac Knife process plant
  • Life of Mine production of 928,000 tonnes of concentrate at 92% Cgr on average at Lac Knife, or approximately 46,600 tonnes of concentrate per annum (tpa)
  • Thermal purification upgrade of approximately 40% of the primary concentrate to 99.99% Cgr by an existing producer with inherent purification losses of 15%
  • Life of Mine Project production of 868,000 tonnes of concentrate at 93.5% Cgr on average, including 338,000 tonnes of high purity 99.95% Cgr product

Financial Highlights:

  • Exchange rate US$1.00 = C$1.00
  • PEA economics for the Project calculated based on graphite market prices of $10,000, $1,300, and $800 per tonne of battery grade (>99.95% Cgr, +100 mesh), medium grade (>90% Cgr, -100+200 mesh) and fine grade (>80% Cgr, -200 mesh) respectively, on a FOB mine basis
  • $246 million pre-tax Net Present Value (NPV) (at a 10% discount rate)
  • 32% pre-tax Internal Rate of Return (IRR)
  • $926 million pre-tax undiscounted cash flow
  • $3.7 billion total net revenue
  • Pre-tax payback period of 2.8 years
  • $154 million initial capital cost, inclusive of $33 million and $24 million in working capital and contingency (25%), respectively
  • $68 per tonne average unit operating cost at Lac Knife
  • $435 per tonne average unit operating cost, assuming thermal purification on a contract basis

Note: This PEA is considered by RPA to meet the requirements of a Preliminary Economic Assessment as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). The economic analysis contained in the technical report is based, in part, on Inferred Resources (as defined in NI 43-101), and is preliminary in nature. Inferred Resources are considered too geologically speculative to have mining and economic considerations applied to them and to be categorized as Mineral Reserves (as defined in NI 43-101). Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no certainty that the reserves development, production, and economic forecasts on which the PEA is based will be realized.

Gary Economo, President and CEO of Focus Graphite, stated, “This is a great day for the Canadian graphite industry, our shareholders and the province of Québec. Lac Knife is a world-class resource and the publication of our Preliminary Economic Assessment confirms Focus has the potential to become one of the highest-grade lowest-cost producers of graphite in the world. We enter a new phase now, where we can expedite our financing, advance customer off-take agreements, and construction of our purification and anode facilities.”

PEA SUMMARY

Project Location

The Project is located in the Côte-Nord administrative region of Québec. Fermont is the closest community and is located 27 km north-north east of the Project. Road distance from Montreal to Lac Knife is approximately 1,300 km and by all-season highway 389, it is 500 km from Baie-Comeau to Fermont. The municipalities of Wabush and Labrador City, in Newfoundland and Labrador are located 30 km from Fermont, and Wabush is home to a commercial airport with regular flights to Sept-Iles, Québec, and Montréal.

Geology and Mineral Resources

The Project hosts graphite enriched metasediments. Graphite occurs as lenses and bands. Currently, graphite rich rocks have been identified from drilling undertaken in 1989 and more recently in 2010-2011 with 12 drill holes aimed at twining the older holes with the objective of confirming the 1989 grade and lithology information. The mineralized zone extends approximately 650 m in length and 120 m in thickness. Mineralization reaches the surface under a layer of overburden. Mineralization is intersected at depths reaching 110 m. There is potential for the delineation of additional Mineral Resources at greater depth and along strike to the south.

On January 19, 2012, Focus released an initial NI 43-101 compliant Mineral Resource estimate in a Technical Report. RPA reviewed and accepted the current Mineral Resources and has declared them adequate to support the current PEA with one modification to the Mineral Resource classification. RPA elected not to classify any Mineral Resources as Measured and, as a consequence, converted the January 2012 Measured Mineral Resources to the Indicated category. The Mineral Resources are presented in the table below.

MINERAL RESOURCE ESTIMATE

Category Tonnage
(tonnes)		 Grade
(% Cgr)
Indicated 4,938,000 15.76
Inferred 3,000,000 15.58
Notes:
1. CIM definitions were followed for Mineral Resources.
2. Mineral Resources are estimated at a cut-off grade of 5% Cgr.
3. Numbers may not add due to rounding.
4. Cgr – graphitic carbon

Mining

Mining will be carried out using conventional truck and loader open pit mining methods. Life of Mine strip ratio averages 1.12:1. An owner-operated mining fleet is proposed over the life of the operation. Pre-stripping of overburden is required prior to commencement of mining operations.

Highlights of the production schedule are as follows:

  • A short ramp-up to full production with 270,000 tonnes produced in Year 1
  • Production of 300,000 tpa, or 822 tpd
  • Waste mining averaging 335,000 tpa

Production quantities total 6.0 Mt, at a grade of 15.66% Cgr. This includes mining extraction and dilution (at zero grade) factors applied to the potentially mineable graphite-bearing material.

Processing and Recovery

The selected process consists of crushing followed by a grinding and flotation separation circuit. The resulting concentrate is then thickened, dried and stored. The tailings generated by the concentration process passes through flotation cells to separate acid-generating tailings from clean non-acid tailings.

The PEA forecasted concentrate production is approximately 46,600 tpa with a tailings production expected at approximately 253,400 tpa. This is based on a concentrate average grade of 92% Cgr and a recovery of 91.3% derived from testwork results conducted by SGS Canada Inc. (SGS). Although laboratory and locked cycle tests were performed with a slightly higher potentially mineable ore grade than estimated, no significant impact is expected on the anticipated recovery.

Tailings, Waste Rock and Water Management

One of the challenges for the Project is the management of acid-generating materials. The graphite-bearing mineralization, the waste rock and the tailings showed acid-generating potential. Therefore, the mine water and the ore storage run-off water will likely be acidic. The global program to manage this issue will comprise the following:

  • Subaqueous co-disposition of acidic tailings and waste rock into a unique storage site: the tailings and waste rock storage facility (TSF).
  • Sulfide flotation to reduce the proportion of acidic tailings to 30% of the total volume.
  • Tailings managed in two separate streams.
  • Use of the 70% non-acidic alkaline tailings as inert material for encapsulation of acid-generating tailings and waste rock within the TSF.
  • Water treatment plant and polishing pond for pH neutralisation, metals precipitation, and sedimentation.
  • Water management to direct all industrial sourced waters through the water treatment plant and/or the polishing pond as required.

Thermal Purification

The Project considers the thermal purification of approximately 40% of the concentrate produced at the Lac Knife process plant. This portion of the primary concentrate production meets the specifications (+100 mesh, >95% Cgr) for purification to 99.99% Cgr. Graphite concentrate of this purity is used in battery production and other applications at high prices. It has been assumed that the thermal purification would be done under contract by an existing producer, with related losses of approximately 15%.

Revenue

Focus has initiated contacts with several major graphite consuming groups in North America, Europe and Asia. Marketing efforts have been targeted to high value end users requiring superior quality product in terms of product purity and flake size. Potential customers have provided Focus with product quality requirements and projected annual demand. RPA has reviewed these expressions of interest and is satisfied that there are sufficient indications of demand to support the projected PEA production forecast. To date, Focus has identified the following major product opportunities:

  • Ultra high purity thermo processed battery grade product based on large flake, high purity concentrate
  • Medium to fine flake graphite concentrate, -100+200 mesh, +90% graphitic carbon concentrate
  • Fine flake concentrate, -200 mesh, +80% graphitic carbon concentrate

Production quantities for each major grade category are based on the lock-cycle concentrate production test results and test recovery results from proprietary thermal purification processing of the high grade primary concentrate. Projected overall product volumes and product qualities are detailed in the following table.

PROJECTED PRODUCT MIX
Grade Tonnes (maximum annual) (1) Product Characteristics
Battery Grade 16,900 (2) >99.95% Cgr, +100 mesh
Medium Grade 11,200 >90% Cgr, -100+200 mesh
Fine Grade 15,500 >80% Cgr, -200 mesh
Total 43,600
Notes: (1) totals are rounded
(2) inclusive of conversion recovery factor from 19,900 t of primary concentrate

Current published prices for the Project’s major graphite product opportunities are detailed as follows.

Grade Basis Units Price Range
Synthetic, 99.95%C, Swiss Swiss border US$/kg 20 – 7
Crystalline, 90%C, -100 mesh FCL, CIF European port US$/t 1,400 – 1,100
Amorphous powder, 80%-85%C, Chinese FCL, CIF European port US$/t 800 – 600
Source: Industrial Minerals, September 2012

Freight and insurance costs are projected to be approximately $63/t for product sold to customers in the United States, $200/t for deliveries to Europe and $428/t for deliveries to Asia. RPA has reviewed various price scenarios and has assumed the following price in the economic analysis:

  • Battery Grade $10,000/t FOB mine – $9,572/t CIF equivalent
  • Medium Grade $1,300/t FOB mine – $1,237/t CIF equivalent
  • Fine Grade $800/t FOB mine – $600/t CIF equivalent

The price set used in the PEA averages $4,196 per tonne of graphite concentrates FOB mine prior any deductions for marketing, freight and insurance; or 16,900 tpa at $9,572/t (purification losses considered) and 26,700 tpa at $867/t on average, CIF considered.

RPA considers these graphite prices to be appropriate for a PEA-level study. It is noted that the processing for the Battery Grade product, which accounts for some 86% of LOM revenue, is based on an expression of interest by a producer and is by no means a certainty, however, RPA considers the assumption to be reasonable for a PEA.

Total net revenue is $3.7 billion, averaging $185 million per year. On a unit basis, net revenue is $615 per tonne milled.

Capital Costs

The estimated initial capital cost has been developed to include all mining, processing, infrastructure, tailings and indirect capital costs. The capital cost estimate includes a contingency of $24 million (25% of direct and indirect capital costs) and is summarized in the table below.

INITIAL CAPITAL COST ESTIMATE

Capital Cost Item Cost
($ million)
Surface Infrastructure 18.7
Mining (incl. pre-stripping overburden/waste) 11.2
Processing 36.4
Tailings / Waste Rock & Water Treatment 3.1
EPCM 9.7
Indirect/Owner’s 16.7
Warehouse Inventory 0.9
Contingency (25%) 24.2
Working Capital (3-month opex) 32.6
Total Initial Capital Cost 153.5

Sustaining capital, totalling $25 million consists of mine, process, and infrastructure equipment replacement, tailings and waste rock storage facility expansion, progressive environmental rehabilitation, and mine closure costs.

Operating Cost

The Life of Mine operating costs have been estimated for mining, stockpile re-handling, processing, tailings and water treatment, and general and administration. The operating costs are summarized in the following table.

OPERATING COST ESTIMATE

Operating Costs Item Cost
($/t milled)
Mining / Re-handling 15
Processing / Tailings and Water Treatment 41
General and Administration 12
Total Operating Costs 68

In addition, the unit cost for thermal purification under contract was derived from a budget quote by an existing producer and considered the approximate 15% losses during the purification process. This cost equates to $367 per tonne milled, therefore bringing the overall operating cost to $435 per tonne milled.

Preliminary Economic Assessment

Financial evaluation of the Project was carried out using a cash flow model, on a pre-tax basis. Estimates are based on constant 2012 dollar basis, with no provision for escalation. Results are provided in the following table.

PEA FINANCIAL RESULTS

Value
($ million)
Gross Revenue 3,894
Marketing and CIF 225
Net Revenue 3,669
Total Operating Cost 2,597
Operating Cash Flow 1,072
Initial Capital Cost 154
Working Capital Recovery (33)
Sustaining Capital 21
Mine Closure 4
Pre-Tax Cash Flow 926
Net Present Value
8% discount rate 316
10% discount rate 246
12% discount rate 192
Pre-Tax IRR 32.1%
Payback Period 2.8 years

NPV Sensitivity Analysis

Key economic risks were examined by running cash flow sensitivities on:

  • head grade;
  • recovery;
  • graphite market price;
  • operating cost per tonne milled; and
  • capital cost

The pre-tax NPV (at 10%) sensitivity analysis has been calculated for -20% to +20% variations on the above items, with the exception of recovery which has been calculated for -20% to +5%. There is minimal to no effect on NPV when the head grade and recovery factors are adjusted above 0% because of the Project market ceiling on graphite concentrate sales. The NPV sensitivity is shown in the following graph.

NPV (10%) Sensitivity Chart is available at the following link : http://media3.marketwire.com/docs/NPV_Sensivity_Chart.pdf

The technical and economic information relating to the PEA contained in this press release has been reviewed and approved by Marc Lavigne, M.Sc., ing., Senior Mining Engineer for RPA, Robert de l’Étoile, M.Sc.A., ing., Principal Geological Engineer for RPA, and Pierre Roy, M.Sc., P.Eng., ing., Senior Metallurgist Specialist for Soutex, all independent qualified persons under NI 43-101. The technical report will be filed on SEDAR on or before October 31, 2012.

Other News – Bi-Weekly Default Status Report

As previously reported, the Company is presently in default because of its failure to file the PEA and supporting technical report (the “Technical Report”) under NI 43-101 and will continue to be in default until such time as it files the required report on the Project.

In compliance with the alternative information guidelines set out in National Policy 12-203 – Cease Trade Orders for Continuous Disclosure Defaults (“NP 12-203”) for issuers who have failed to comply with a specified continuous disclosure requirement within the times prescribed by applicable securities laws, Focus issued today a default status report by way of present press release confirming the Company’s objective to file the PEA and Technical Report at the latest on October 31, 2012.

Until Focus completes the filing of the PEA and Technical Report, and until the Management Cease Trade Order (“MCTO”) is subsequently lifted by the Ontario Securities Commission (the “OSC”), Focus will comply with the alternative information guidelines set out in NP 12-203. The guidelines, among other things, require the Company to issue bi-weekly default status reports by way of a news release so long as the PEA and Technical Report have not been filed.

The Company reports that since its original announcement on September 10, 2012 in respect of the notice of default received from the OSC and its subsequent announcement on September 25, 2012 relating to the issuance of the MCTO (collectively, the “Notice”), with the exception of the Company’s announcement today of the PEA results, there has not been any other material changes to the information provided in the Notice nor any failure by the Company in fulfilling its stated intentions with respect to satisfying the alternative information guidelines required pursuant to NP 12-203. In addition, there has not been any other specified default by the Company under NP 12-203, nor are any anticipated and there is no other material information concerning the affairs of the Company that has not been generally disclosed.

This press release has been reviewed and approved by Marc-André Bernier, M.Sc., P.Geo. (Ontario and Québec), Technical Advisor and a Director of Focus, and a Qualified Person under NI 43-101.

About Focus Graphite

Focus Graphite Inc. is an emerging mid-tier junior mining development company, a technology solutions supplier and a business innovator. It is the owner of the NI 43-101 compliant Lac Knife graphite deposit grading 16% carbon as graphite. The company’s goal is to assume an industry leadership position by becoming a low-cost producer of technology-grade graphite. As a technology-oriented enterprise with a view to building long-term, sustainable shareholder value, Focus Graphite is investing in the development of graphene applications and patents through Grafoid Inc.

Forward Looking Statements – Disclaimer

This news release may contain forward looking statements, being statements which are not historical facts, and discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company’s expectations are in our documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com Focus Graphite disclaims any intention or obligation to revise or update such 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

 

Mr. Gary Economo
President and Chief Executive Officer
613-691-1091, ext. 101
[email protected]
www.focusgraphite.com

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Mistango Announces Initial Resource Estimate on Omega Mine Project

Posted by AGORACOM-JC at 9:51 AM on Monday, October 29th, 2012

October 29, 2012 Kirkland Lake, Ontario, Mistango is pleased to report it has completed a National Instrument 43-101 resource estimate on the 100% owned Omega Project. The report was authored by AMC Mining Consultants (Canada) Ltd. (AMC) of Toronto, Ontario in accordance with the requirements of National Instrument 43-101 and describes the initial Mineral Resource estimate on the Omega Property.

The Inferred Mineral Resource estimate, at cut-offs of 0.5 g/t Au for mineralization above an elevation of 130 m above sea level (masl), representing open-pit potential and for a cut-off of 3 g/t Au below 130 masl, representing underground potential is set out in the table below. Note that 130 masl approximately corresponds to 170 m vertical depth in areas proximal to main mineralization zones.

 ----------------------------------------------------------
 |Cut-off grade         |Tonnes   |Au (g/t)|Contained (Oz)|
 |--------------------------------------------------------|
 |0.5 g/t above 130 masl|3,800,000|2.50    |306,100       |
 |--------------------------------------------------------|
 |3 g/t below 130 masl  |1,200,000|4.33    |166,000       |
 |--------------------------------------------------------|
 |Total                 |5,000,000|2.93    |472,100       |
 ----------------------------------------------------------

Note: A constant bulk density of 2.89 t/m3 has been used.

-The Omega Gold Deposit resource estimate is based on 152 drill holes spread over 750 m of strike length. Out of the 152 drill holes, 96 are from the four phases of the ongoing 2011-2012 exploration program. The rest are from historical exploration in the 1980’s. All holes are located on an approximate 50 m X 50 m grid.

-The Omega Deposit is comprised of 13 sub-parallel mineralized horizons hosted mostly in highly altered and sheared tholeiites and in metasediments and tuffs close to surface. The mineralization is structurally controlled by thrust fault planes and cross faults. These 13 mineralized horizons comprise the historical 1, 2, 14 and 21 ore zones, which were mined in the old Omega Mine. The Omega Gold Deposit is associated with pyrite conforming to an alteration zone of albitite, sericite, carbonate and leucoxene and conformable to the stratigraphy situated along the Larder Lake Break. Structure is complex, with a series of thrust faults controlling the mineralization.

-The Omega Deposit is associated with Archean volcanics and adjacent to komatiites along the Larder Lake Break. Mineralization is of Timiskaming age.

Grade Estimation Method

-All wireframes in DXF format and drill hole files were imported into CAE Datamine.

-Individual zones were identified.

-Samples within each zone were composited to 1 m intervals.

Statistical and variogram analysis of the grades was carried out.

A block model with blocks 25 m wide in the X and Y directions and 2 m thick in the Y direction was prepared.

-Each individual zone was filled with blocks using sub-cells down to 5 m in the east and 1 m in the north and vertical directions.

-Block grades were estimated into each parent block within the zones and outside the zones using ordinary kriging.

-The blocks located within the areas of previous mining were removed from the resource estimate.

-The individual models were combined into one final model.

Samples

A total of 14,427 composites were available with 975 composite samples selected from within the zone wireframes and these were used for the variogram analysis and estimation of the blocks within the zones.

Bulk Density

An average density of 2.89 t/m3 has been used for this estimate.

True Width of Mineralization

The orientation of the drilling is in two primary directions, approximately perpendicular to the strike of the mineralized zone. Twenty holes have been drilled from the footwall side and have an azimuth of about 145°, within the remainder having an approximate azimuth of 325°.

Using TrueDip process in CAE Datamine® and averaging the results, it was found that there is only an approximately 5% reduction of the true width for the holes drilled from the hanging wall, which represents the majority of the holes drilled. For the holes drilled from the footwall there was 68% reduction from the apparent width.

Exploration Potential

There is significant exploration potential at the Project. Parts of the zones have not been sufficiently drilled to enable their continuity to be assessed. A number of drill holes failed to penetrate to the other side of the previously mined areas. These areas will need infill drilling.

There also remains down-plunge potential for many of the zones, along with their potential extension along strike.

Technical Report Comments

Robert Kasner, President and CEO of Mistango, comments,” I am very pleased with the resource estimate in the potential open pit area. We can now build on this to bring it into the indicated category by following the suggestions of AMC. Also, the resource below the pit is very encouraging.

We are presently completing several deep holes to confirm the mineralization continues to depth and complete a work commitment on the adjoining MacGregor option. I am pleased to say the first two holes have intersected similar geology and mineralized structures contained in the upper part of the Omega mine. Upon completion of the deep drilling program a plan will be implemented to carry out the recommendations of AMC in the potential open pit area.”

Literature review and sample comparison done by Mistango, indicates that the Omega Deposit has similar alteration assemblages and mineralization to the past producing Kerr-Addison Mine located 6 km east of the Omega Project site.

Qualified Person

Cath Pitman P.Geo.(Ontario) is a full-time employee of AMC Mining Consultants (Canada) Ltd., and independent of Mistango River Resources Inc. She has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which she is undertaking to qualify as a Qualified Person in accordance with NI 43-101. Cath Pitman consents to the inclusion in this announcement of the matters based on her information in the form and context in which it appears.

About Mistango

Mistango River Resources Inc. is a Canadian based exploration and development company holding several properties in Ontario and Quebec, including large land holdings in the Kirkland Lake region. Mistango specializes in precious metals and VMS hosted base metals, with recent projects centered on the Omega and Sackville properties in Ontario. Mistango brings a distinguished board and technical staff with expertise and many years in mineral exploration and mining fields. For additional information about Mistango and its mining properties, please visit Mistango’s website www.mistangoriverresources.ca.

This news release contains certain “forward-looking information”. All statements, other than statements of historical fact that address activities, events or developments that Mistango believes, expects or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of Mistango based on information currently available to Mistango. Forward looking statements are subject to a number of significant risks and uncertainties and other factors that may cause the actual results of Mistango to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Mistango. Factors that would cause actual results or events to differ materially from current expectations include, but are not limited to, Mistango’s decision to cancel its exploration program on its Omega gold property.

For further information please contact:

Mistango River Resources Inc. CHF Investor Relations

Robert J. Kasner, President & CEO Stephanie Fitzgerald

Telephone: 705-568-7540 Telephone: 416-868-1079 x222

E-mail: [email protected] E-mail: [email protected]

Donald Kasner, Investor Relations

Telephone: 705-570-1019

E-mail: [email protected]

Website: www.mistangoriverresources.ca

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Posted in Mistango River Resources | Comments Off on Mistango Announces Initial Resource Estimate on Omega Mine Project

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