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Graphite still the one to watch – Chris Berry

Posted by AGORACOM-JC at 5:02 PM on Thursday, November 8th, 2012

Chris Berry is not only unconcerned with graphite’s price softness-he’s even more confident in his long-term “super cycle” thesis than he was previously. An interview with The Critical Metals Report.

Author: The Critical Metals Report
Posted: Wednesday , 07 Nov 2012

TORONTO (The Critical Metals Report) –

The Critical Metals Report: Chris, you have been watching the graphite space for a long time. Prices shot up at the end of 2011 to as much as $2,700/tonne, but have come down since. What is behind this volatility and where could prices go from here?

Chris Berry: We need to remember that graphite is an industrial mineral. As such, it is subject to the vagaries of global growth. We’ve seen a softening of GDP growth in many countries throughout the world, notably in China. This, more than anything, has pushed graphite prices down. While graphite prices are high by some historical measures, the recent decrease is a welcome sign and adds validity to our long-term super cycle thesis supporting higher commodity prices-though not indefinitely higher and not in a linear fashion.

I am reading a book called “The $10 Trillion Dollar Prize” that attempts to predict the size of the consumer market in China and India by 2020. The book states that a Chinese citizen born in 2009 will consume 38 times as many goods as his or her grandparents. In India, a child born in 2009 will consume 13 times as many goods as his or her grandparents. Though this is only a prediction, it is evidence of the long-term super cycle in that those people born today are more cognizant of life’s possibilities and will aspire to a higher quality of life-implying steady commodity demand. Graphite is used in roughly 180 different products and its ubiquity is an indication to me that more graphite of all types will be needed on world markets in the future. While graphite prices have fallen, they have not fallen as far or as fast as other commodities such as iron ore or coal.

We believe that the decrease in graphite prices has been overdone somewhat and has bottomed. While the fall in graphite pricing is no doubt due to an uncertain macroeconomic environment, we view this as temporary and still believe that graphite (flake graphite, in particular) is a tight market with room for a small number of new producers in coming years.

TCMR: What role does China play in the graphite market? Is the country’s dominance as pronounced as it is in the rare earth market?

CB: China is not as dominant in graphite as it is in rare earths. The main difference is that a downstream supply chain for graphite end products exists outside of China-this is not the case for rare earths. Nonetheless, governments throughout the world have labeled graphite as a critical material because China controls up to 80% of natural graphite production. China’s role as a global engine of growth, commodity demand and commodity supply can’t be understated. China’s consolidation of amorphous graphite mines (from 230 down to 20, according to Industrial Minerals) in the name of minimizing environmental impact will no doubt curtail amorphous supply, with the goal of ensuring domestic resources serve domestic needs first and international needs second.

TCMR: What if rumors of China’s growth curve taking a dive are correct? What will that mean for graphite prices?

CB: We are acutely aware that the Chinese growth engine is slowing (as measured by declining GDP) and are of the opinion that the looming supply consolidation within China outweighs any softening of demand in the near term.

It is important to remember that a commodity like graphite has multiple avenues of demand. This is one of the reasons we like it so much. With the forecast growth in next-generation technologies (batteries) underpinned by steady demand from current day uses (steel) and sweeping consolidation among the largest global producer of graphite, we would submit graphite is a sound investment over the long term.

TCMR: It looks like there is a lot of competition in the space. Your junior mining graphite index shows 69 companies managing 150 projects in 13 countries. How many can be profitable?

CB: It is much too early to tell how many can be profitable. Of those 69 companies, only six have NI 43-101- or JORC-compliant resource estimates. Of those six, only two have any sort of advanced study completed, such as a preliminary economic assessment, and only one has a bankable feasibility study completed. We would need to know much more about the size and composition of a company’s deposit and the potential economics before we undertake a valuation exercise and start making estimates of profitability.

A graphite company will only be profitable if it has agreements with end users to sell its product to. It’s important to remember that the graphite business is one that rests on long-term relationships where end users and graphite producers negotiate price based on a specific end product. It could take time for junior companies breaking into the graphite market to establish these relationships. I think this will be a challenging hurdle for any graphite junior exploration company to navigate-though not insurmountable.

With respect to the index, on an equal-weighted basis, its overall returns have increased by 49.8% year to date. Much of these gains have come from the “bubble” in graphite exploration interest earlier this year. The index is actually down by -7.59% over the last six months. The market cap-weighted returns don’t differ that much from the equal-weighted returns, and this tells us that the companies with the largest market capitalizations are responsible for much of the price movement in the index.

TCMR: Any advice for investors looking to get into the graphite market?

CB: Many people ask me if graphite is still the “one to watch,” or if it has had its day in the sun. My response is that graphite, due to its many unique properties, will remain the “one to watch” for some time. It’s true that there was a huge run up in graphite exploration company share prices earlier in the 2012 with a resulting collapse, much the same as we saw with rare earths and lithium shares. I think this clouded graphite’s true importance and significance in the workings of the global economy. Graphite’s strength is in its ubiquity in current-day and future uses. Despite the fact that global steel demand is stagnant, the battery business is exhibiting strong growth. There are also huge sums of money going into materials science research surrounding battery technology and graphene. A breakthrough here could unleash major changes in how we generate and store electricity or fortify infrastructure.

The next 12-18 months will be an exciting time to watch the graphite space. Several graphite junior mining companies will be releasing studies of their deposits or maiden resource estimates soon, which I think will aid in valuation on a relative basis. While the near-term outlook for many industrial minerals is somewhat uncertain, investors can profit over the longer term in graphite by finding those companies with the right blend of pertinent management experience, high-quality deposits (both grade and tonnage) and locations in reliable political jurisdictions.

TCMR: Thank you for sharing your insights, Chris.

CB: You are welcome.

Chris Berry, with a lifelong interest in geopolitics and the financial issues that emerge from these relationships, founded House Mountain Partners in 2010. The firm focuses on the evolving geopolitical relationship between emerging and developed economies, the commodity space and junior mining and resource stocks positioned to benefit from this phenomenon. Berry holds an MBA in finance with an international focus from Fordham University, and a bachelor’s degree in international studies from The Virginia Military Institute.

Source: http://www.mineweb.com/mineweb/view/mineweb/en/page103855?oid=161509&sn=Detail

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Northern Graphite Successfully Scales Up Graphite Purification Process

Posted by AGORACOM-JC at 9:19 AM on Thursday, November 8th, 2012

Bench Scale Tests Produce 99.99% Cg Spherical Graphite

OTTAWA, ONTARIO–(Nov. 8, 2012) – Northern Graphite Corporation (TSX VENTURE:NGC)(OTCQX:NGPHF) is pleased to announce that ongoing metallurgical testing by Hazen Research has succeeded in purifying spherical graphite from the Bissett Creek deposit up to 99.99% graphitic carbon (“Cg”) and large flake graphite to 99.83% Cg. These bench scale tests are the first step in demonstrating that the laboratory process developed by Northern can be scaled to commercial levels.

Hazen Research’s initial mandate was to test the laboratory process developed by Northern’s research partner in Canada, on bench scale models of commercial units. The trials were highly successful in purifying spherical graphite to levels ranging from 99.93% Cg to 99.99% Cg. The requirements of battery manufacturers vary in particle size and purity with the latter specification usually being in the 99.9 to 99.95% Cg range. Large flake graphite was purified to levels ranging from 99.73 to 99.83%Cg with further improvements possible.

The next steps will be to further scale up the process in a Pilot Plant test that will enable Hazen to define operating parameters at a commercial level and to estimate capital and operating costs. As part of this process, Northern and Hazen are presently working with an equipment manufacturer to identify the matching full scale commercial unit that can be modified to suit the process requirements. The ultimate objective is to define a purification process that works not only with spherical graphite for battery use, but also flake graphite and micronized flake graphite for other applications requiring high purity.

Spherical graphite is used to make the anodes in Li ion batteries and is manufactured from the flake concentrate produced by graphite mining operations. Almost all natural spherical graphite is currently produced in China and purified using strong acids which results in large volumes of acidic and toxic waste. Thermal purification at temperatures as high as 2400 degrees C can be used but it is expensive in terms of capital and operating costs. The proprietary purification technology developed by Northern and its metallurgical research partners is much more environmentally friendly than the Chinese approach and operates at significantly lower temperatures than traditional thermal methods. It also involves relatively low retention times in the furnace and will likely be a continuous rather than a batch process. As a result, costs should be significantly lower.

Hazen Research is currently purifying larger quantities of spherical graphite to provide potential strategic partners in the battery industry with samples made from Bissett Creek ore that has been processed using Northern’s commercial mill flow sheet and purified in an environmentally sustainable manner. It has already been successfully tested in batteries at the National Research Council of Canada.

Gregory Bowes, Chief Executive Officer, stated that: “The purification process and the production of spherical graphite are part of the Company’s strategy to create value for shareholders by doing value added and downstream processing in addition to being a mine operator.”

The Graphite Market

Graphite demand and prices have increased substantially over the past few years due to the ongoing modernization of China and other emerging economies which has resulted in strong demand from traditional steel and automotive markets. In addition, Li ion batteries and other new applications such as vanadium redox batteries, fuel cells and nuclear power have the potential to create significant incremental demand growth.

China currently produces over 70% of the world’s graphite and an export tax and a licensing system have been instituted to restrict exports and encourage value added processing in China. Recently, the Chinese government proposed a new set of rules and standards for graphite mines which will make them much more difficult to operate and build. These proposals follow calls for REE type protection and quotas from Chinese producers, and the formation of a state owned amorphous graphite monopoly that has acquired and is consolidating 210 amorphous graphite mines down to 20 and reducing production capacity from 600,000 to 510,000 tonnes per year. No new graphite mines were built during the recent economic cycle and the supply situation will become more acute as Chinese restrictions increase and economies recover. Both the European Union and the United States have declared graphite a supply critical mineral.

Northern files revised Technical Report on SEDAR for TSX-V Tier 1 Graduation Application

Northern also announces that in connection with its application to graduate to Tier 1 of the TSX Venture Exchange (“TSX-V”), it has filed a revised technical report on SEDAR with respect to the bankable feasibility study for its 100% owned Bissett Creek graphite deposit. The revised technical report has been filed to correct minor deficiencies in the original report, filed on SEDAR on August 24, 2012, which were identified by the TSX-V in its review of the report in connection with Northern’s graduation application. There have been no material changes to the bankable feasibility study or the technical report. Northern’s application to graduate to Tier 1 of the TSX-V remains subject to review and approval by the TSX-V.

Northern Graphite Corporation

Northern Graphite Corporation is a Canadian company that has a 100% interest in the Bissett Creek graphite deposit located in eastern Ontario and is well positioned to benefit from the favorable supply/demand outlook for graphite. Northern is the only graphite company to have completed a bankable Feasibility Study and has a large flake, high purity, scalable deposit that is located close to infrastructure with very competitive operating costs. Additional information is available under the Company’s profile on SEDAR at www.sedar.com and on the Company’s website at www.northerngraphite.com.

Hazen Research

Hazen Research, Inc. was organized in 1961 to provide process research and development services to the extractive metallurgy and chemical industries. Hazen has assembled an experienced and competent staff supported by the laboratory and pilot plant facilities necessary to apply the most appropriate technology to the industrial, commercial, and environmental challenges of their clients.

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

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

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

Contact Information

Northern Graphite Corporation
Gregory Bowes
CEO
(613) 241-9959

Northern Graphite Corporation
Don Baxter P.Eng
President
(705) 789-9706
www.northerngraphite.com

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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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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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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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Alabama Graphite Drilling at Coosa Graphite Project Intercepting Planned Target

Posted by AGORACOM-JC at 10:07 AM on Thursday, October 25th, 2012

Oct 25, 2012 — October 25, 2012 – Birmingham, Alabama, USA – Alabama Graphite Corp. (the “Company”) (cnsx:ALP) (frankfurt:1AG WKN A1J35M) has two diamond drill rigs on the Coosa Graphite Project in Alabama, USA operated by Major Drilling working on the phase one drill program. Eight core holes have been completed to date and additional holes are currently being bored. The two rigs on the property will work towards each other as twelve stratigraphic definition holes are expected be complete by late October 2012.

Preliminary core logging has revealed that graphitic schists are the dominant rock type encountered in each of the first five stratigraphic holes. Cross-sections based on the drill results indicate that the graphitic schist unit has a true thickness in excess of 1600 feet (515m). Sample preparation is underway with the first holes already at SGS laboratories for analysis. Initial assay results are expected before the end of the month.

Danny Spine CEO of Alabama Graphite Corp. commented: “We are very excited about the drilling which appears to have intercepted consistent graphite mineralization as expected. The core lengths look very encouraging as we now await assay results. The drill program remains ahead of schedule and under budget so we are pleased with the progress to date”

An access road has been prepared for entry into the resource development grid. This grid will outline phase two of the drill program and will be comprised of eighty reverse circulation and core holes to provide definition of the resource and provide material for metallurgical testing.

The Company expects initial fieldwork will be completed in 2012 and will use these results toward creating a preliminary resource estimate. The Company’s goal is to become the first operating graphite mine in the United States in sixty years.

As a result of European investor interest the Company, its common shares are now quoted on the Frankfurt stock exchange for trading under the symbol 1AG.F.

The drill program and QA/QC program is under the supervision of Dr. Douglas Oliver, PhD, VP Exploration of the Company. Dana Durgin, a Qualified Person as defined in National Instrument 43-101, has reviewed the contents of this news release.

Danny Gravelle of Goal Capital has joined the Company as Investor Relations.

About Alabama Graphite:

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

ALABAMA GRAPHITE CORP.

Daniel Spine, CEO

(404) 661-6254

Danny Gravelle, Goal Capital Inc.,

Investor Relations

(949) 481-5396

[email protected]

THE CANADIAN NATIONAL STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.

Forward-looking information

This release contains “forward-looking information” within the meaning of applicable Canadian securities legislation, including predictions, projections and forecasts. Forward-looking information includes, but are not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as the planned exploration work allowing for a focus of subsequent exploration efforts on the most favourable areas and the definition of drilling targets. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “planning”, “planned”, “expects” or “looking forward”, “does not expect”, “continues”, “scheduled”, “estimates”, “forecasts”, “intends”, “potential”, “anticipates”, “does not anticipate” or “belief” or describes a “goal” or variation of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.

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Zenyatta Ventures Achieves High Grade Purity of 97.2% C (Graphite) on First Test; On-Going Work Targets Greater Than 99.0% Purity

Posted by AGORACOM-JC at 9:10 AM on Thursday, October 4th, 2012

THUNDER BAY, ONTARIO–(Oct. 3, 2012) – Zenyatta Ventures Ltd. (“Zenyatta” or “Company”) (TSX VENTURE:ZEN) is pleased to announce that a first pass beneficiation test at SGS Canada Inc. (“Lakefield”) demonstrated a leaching process capable of producing a 97.2% C (total) graphite product from a rough concentrate. Work is on-going to target purity levels of >99.0% C with results from a second series of tests expected soon.

Aubrey Eveleigh, President and CEO, stated “It is very significant and remarkable to start with such a high purity level of greater than 97% graphite on the first test. Management is excited with the latest successful metallurgical developments and considers higher purity graphite achievable with fine-tuning of the process.”

In conjunction with Don Hains of Zenyatta, Lakefield metallurgical test work of the Albany graphite material continues to develop a simple concentration and leaching process to produce an ultra-high purity (>99.0% C) graphite product. Again, mineralogical work shows the graphite material to be very simple and contains insignificant amounts of undesirable material. This confirms an earlier mineralogical report prepared by Dr. Andrew Conly, Ph.D. of Lakehead University.

Aubrey Eveleigh also stated “Presently, Zenyatta’s Albany is the only new vein type graphite deposit being developed in the world. It is the only one of its kind outside of the mined vein type graphite deposits of Sri Lanka.”

Sri Lankan vein type graphite grades are available in purities ranging from 80-99% carbon with the majority above 90%. The Bogala Mine, a Sri Lankan graphite deposit, has been in production since 1847. It is a narrow (20cm), high grade underground mine. Sri Lankan graphite still enjoys great demand due to its unusually high purity and unique physical properties. Graphite veins are quite rare and in many industrial applications offer superior performance due to higher thermal and electrical conductivity.

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

The outlook for the global graphite market is very promising with demand growing rapidly from new applications in clean technology. China produces over 70% of global supply and, like other commodities, now has less available for export as domestic demand grows. As global demand outstrips supply, graphite prices have increased substantially, more than doubling over the past three years.

Graphite is a natural form of carbon with the chemical formula C, which it shares with diamond and coal. It is now considered one of the more strategic elements by many leading industrial nations, particularly for its growing importance in high technology manufacturing and in the emerging “green” industries, such as electric vehicle components. The application for graphitic material is constantly evolving due to its unique chemical, electrical and thermal properties. It maintains its stability and strength under temperatures in excess of 3,500°C and is very resistant to chemical corrosion. It is also one of the lightest of all reinforcing elements and has high natural lubricating abilities. Some of these key physical and chemical properties make it critical to modern industry.

Mr. Aubrey Eveleigh, P.Geo., President and CEO, is the “Qualified Person” under NI 43-101 and has reviewed the technical information contained in this news release. Analyses were carried out by SGS Canada Inc. lab using a total carbon (LECO) method. To find out more on Zenyatta Ventures Ltd., please visit website www.zenyatta.ca.

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

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

Contact Information

 

Zenyatta Ventures Ltd.
807-346-1660
[email protected]
www.zenyatta.ca

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Focus Graphite Updates the Timing of a PEA for its Lac Knife, Quebec Graphite Resource

Posted by AGORACOM-JC at 11:17 AM on Tuesday, October 2nd, 2012

OTTAWA, ONTARIO–(Oct. 2, 2012) – Focus Graphite Inc. (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) (“the Company”) wishes to provide the following shareholder update regarding the timing of the release of its NI 43-101 compliant Preliminary Economic Assessment (PEA) and supporting Technical Report (the “Technical Report”) for its Lac Knife, Quebec graphite resource.

Due to a requirement set by the Ontario Securities Commission to file the Technical Report on SEDAR by no later than October 31, 2012, the Company will be issuing a news release summarizing the results of the PEA together with the Technical Report on or before October 31, 2012. Roscoe Postle Associates is completing this report for Focus.

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 invested 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.

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