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Galaxy Capital Corp. Acquires Laurier Graphite Property in Ontario

Posted by AGORACOM-JC at 1:38 PM on Wednesday, May 23rd, 2012

VANCOUVER, BRITISH COLUMBIA–(May 23, 2012) – Galaxy Capital Corp. (TSX VENTURE:GXY) (the “Company” or “Galaxy”) is pleased to announce that it has signed an agreement to acquire a 100-per-cent interest in the Laurier Graphite Property, Ontario.

Laurier Graphite Property

The Laurier Graphite property is located in Laurier Township, ON, approximately 40 km SSE of North Bay, ON. The property is located in the highly prospective Central Metasedimentary Belt of the Grenville geological province, host to many active graphite projects. The host rocks for the target zone are graphitic paragneisses. The property properties cover a total of approximately 2300 hectares on 46 mining claims.

The property was described in Ontario Geological Survey (OGS) Open File Report 5649, published in 1987. The report is entitled “Graphite in the Central Gneiss Belt of the Grenville Province in Ontario.” The property has road access from Highway 11, which is 5 km to the west. The report describes four graphite occurrences, two of which are currently being prepared for production. These are referred to in the report as Butt Township (which is the Kearney Mine) and Maria Township (the Bissett Creek deposit).

Work performed on the Laurier property by the OGS described N-S trending graphitic schist units varying from 25 to 250m in width with 1.0mm (16 mesh) graphite flakes disseminated throughout. In addition, a 1-2m wide vein of massive graphite was reported.

The Company cautions that it has not verified the quality and accuracy of the historic data reported in this news release, which predate the introduction of National Instrument 43-101 and cautions readers not to rely upon them. The historic information was generated from the OGS report cited above. This source is believed to be reliable; however, it has not been confirmed by the company’s Qualified Person.

A field program, consisting of ground geophysics (VLF/Mag), prospecting, mapping and sampling, is planned for June 2012.

Chris Healey, President of Galaxy commented, “With this acquisition, along with the Sun and Buckingham graphite properties previously announced, Galaxy now has an excellent portfolio of quality graphite projects. With the recently closed financing, Galaxy is in a position to aggressively explore these projects starting in the coming weeks and to expedite them to an advanced stage.”

Update on Other Properties

SUN Property, NW of Baie-Comeau: field work on this property is expected to commence in late May, consisting of mapping, prospecting and sampling, to define drill targets. This will be followed by a 3000 metre summer diamond drill program.

Buckingham, East of Ottawa: Field work will commence in late May with a helicopter-borne EM/Mag survey, followed immediately by ground follow-up.

Terms

Galaxy has an option to earn a 100-per-cent interest in the Laurier Graphite Property, Ontario from Gino Chitaroni by making the following payments and issuing the following common shares to the vendors: i) $10,000 upon signing the letter agreement (paid), ii) $40,000 and 1,000,000 common shares on receipt of the TSX Venture Exchange (“TSX-V”) acceptance of the agreement, iii) and $50,000 and 500,000 common shares twelve months from TSX-V acceptance.

The vendor will retain a 2-per-cent net milling royalty on the property, half of which can be purchased by Galaxy for C$1,000,000 and a further quarter for $500,000.

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

ON BEHALF OF THE BOARD

Chris M. Healey, President and CEO

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.

Contact Information

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

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Beatrix Acquires Five Graphite Occurrences in Ontario

Posted by AGORACOM-JC at 5:10 PM on Tuesday, May 22nd, 2012

MAY 22, 2012 – Vancouver, British Columbia, Canada: Beatrix Ventures Inc. (the “Company” or “Beatrix”) has entered into an option agreement with an arm’s-length exploration and development company pursuant to which Beatrix has been granted an option to acquire a 100-per-cent interest in a portfolio of properties in Ontario containing 5 separate graphite occurrences. Each graphite occurrence has been located through government mapping, and several of the occurrences exhibit significant electromagnetic conductor features according to government geological and airborne survey maps. The portfolio contains 84 units of prospective ground in Ontario (the Savant Lake claims) (five occurrences).

The Savant Lake claim group is located within the Patricia Mining Division, approximately 180 kilometres north of the town of Ignace. The Savant Lake claim group encompasses five historical graphite occurrences located by government geologists (from Ontario Geological Survey Map 2442 Geol. Comp. Series).

Beatrix will commence field visits to the occurrences immediately to ascertain the extent of each of the graphite occurrences.

The terms of the option agreement between Beatrix and the optionor include cumulative cash payments to the optionor over four years totalling $80,000 and the issuance of 150,000 common shares of Beatrix to the optionor over a four-year period. If Beatrix exercises its option to acquire the properties and begins commercial production on any part of the properties, Beatrix shall pay to the optionor a royalty of 2 per cent of the net smelter returns provided, however, that Beatrix shall have the right at any time to purchase from the optionor one-half of the 2-per-cent smelter returns production royalty in consideration for a one-time payment of the sum of $1-million. This transaction is subject to TSX Venture Exchange approval.

The Company’s geologist will immediately review all technical data available and propose an exploration program to evaluate the potential of these graphite claims.

Mike Taylor, P.Geo., a director of Beatrix, is the qualified person responsible for the technical information contained herein as well as the design of technical programs for the properties.

On behalf of:
Beatrix Ventures Inc.

For further information, please contact:

Eugene Beukman
President
604.687.2038 or visit our website at www.beatrixventures.com

This release includes certain statements that may be deemed to be “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration and development activities and events or developments that the Company expects, are forward looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see our public filings at www.sedar.com

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

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Berkwood Acquires Lac Gueret East Graphite Property in Quebec

Posted by AGORACOM-JC at 11:44 AM on Tuesday, May 22nd, 2012

May 22, 2012 (ACCESSWIRE-TNW via COMTEX) — Vancouver, B.C., May 22nd, 2012 – Berkwood Resources Ltd. CA:BKR +31.25% (the “Company” or “Berkwood”) announces that it has signed a Mineral Property Option Agreement (the “Option Agreement”) with a group of three prospectors (the “Vendors”) pursuant to which Berkwood has been granted an option (the “Option”) to earn a 100%-interest in the Lac Gueret East Graphite Property located in Quebec.

Lac Gueret East Graphite Property:

The Lac Gueret East Graphite Property (the “Property”) consists of 59 claims totalling 3186 Ha and borders the eastern boundary of Mason Graphite’s Lac Gueret Property. A 2009 technical report by Tekhne Research which covered 17% of Mason Graphite’s Lac Gueret Property estimated a resource of 8.9 million tonnes grading 20.8% Graphite.

The Lac Gueret East Graphite Property lies within the same prospective geological environment as Mason Graphite’s Lac Gueret Property, in the Paleoproterozoic Gagnon Terrane which is considered a para-autochton unit fertile for graphite in the Grenville Province of Quebec and includes biotite/garnet/sillimanite/graphite paragneisses, dolomitic marbles and intrusive rocks. Graphite in the area is present in marbles and in contact with or within paragneisses and ranges from 3% to 40% Cg (Carbon Graphite) exhibiting flakes up to 5 mm in diameter. Large flake graphite is generally considered as 0.2 mm and above. The Lac Gueret East Graphite Property is within three hours of Baie-Comeau by road and is easily accessible via numerous tertiary and forest roads. Property maps and details are available on the Berkwood website, please click here.

Berkwood intends to conduct an aggressive exploration campaign on the Property commencing immediately, beginning with a complete compilation of historic geologic work followed by an airborne electromagnetic survey, surface work follow up, stripping and trenching, and core drilling. The exploration program will be under the supervision of EarthMetrix, a firm specialising in the field of structural geology, which has supervised over 600 projects in Canada and abroad for various mining companies for over 20 years.

R. Brian Buchanan CEO and Director of the Company states: “This Quebec acquisition will offer Berkwood a great opportunity within the emerging Graphite space. The Lac Gueret East Graphite Property is well located in the Grenville Province adjacent to the advanced Mason Graphite Lac Gueret Property in an attractive mining jurisdiction. We are fortunate to add this asset to our property portfolio and will initiate work immediately.”

The Option Agreement:

Pursuant to the terms of the Option Agreement, Berkwood has the option to acquire a 100% -interest in the Lac Gueret East Graphite Property by making cash payments and issuing Berkwood securities as set forth below:

         --------------------------------------------------------------------
         |A                                   |Cash   |Securities           |
         |------------------------------------------------------------------|
         |On signing                          |$25,000|0                    |
         |------------------------------------------------------------------|
         |Within seven days of TSX Venture    |$35,000|750,000 units *      |
         |Exchange                            |       |                     |
         |acceptance                          |       |                     |
         |------------------------------------------------------------------|
         |Six months from TSX Venture Exchange|$75,000|500,000 common shares|
         |acceptance                          |       |                     |
         |------------------------------------------------------------------|
         |Twelve months from TSX Venture      |$75,000|375,000 common shares|
         |Exchange                            |       |                     |
         |acceptance                          |       |                     |
         |------------------------------------------------------------------|
         |Eighteen months from TSX Venture    |$75,000|375,000 common shares|
         |Exchange                            |       |                     |
         |acceptance                          |       |                     |
         --------------------------------------------------------------------

* Each unit consists of one common share and one common share purchase warrant, with each warrant exercisable for 24 months for an additional common share at a price of $0.15

An aggregate net smelter royalty (“NSR”) of 2% shall be payable to the Vendors on all metals produced from the Property. The Company shall have the right at any time to buy back one per cent (1%) of the NSR from the Vendors for an aggregate payment of one million dollars ($1,000,000).

A finder’s fee will be paid in connection with the transaction in accordance with the policies permitted by the TSX Venture Exchange. The transaction is subject to a number of conditions and approvals, including, but not limited to, TSX Venture Exchange acceptance.

This news release has been reviewed and approved by Alain Moreau, P. Geo., who supervised the preparation of the technical information in this news release. Alain Moreau is a Qualified Person as defined by National Instrument 43-101.

Berkwood Announces Private Placement:

In addition, the Company has elected not to proceed with the non-brokered private placement of 2.2 million units at 15 cents per unit for the gross proceeds of $330,000, as announced in a news release dated March 16, 2012 due to market conditions. Instead the Company announces a non-brokered private placement of 7.5 million units at 10 cents per unit for gross proceeds of $750,000.

Each unit shall consist of one common share and one common share purchase warrant. Each full warrant shall entitle the holder to purchase one additional common share of the company at 15 cents per share for a period of two years from the date of closing. A finder’s fee will be payable in accordance with the policies of the TSX Venture Exchange. The terms of the private placement are subject to approval by regulatory authorities.

The proceeds will be used for exploration programs, acquisition of properties and general working capital.

About Berkwood Resources:

Berkwood holds a 100% interest in the Prospect Valley Gold Property near Merritt, BC. To date, several areas of gold mineralization have been identified on the 107 km? property. The majority of historic drilling has taken place in the centre of the claim block along a prominent north-northeast trending linear zone. This drilling outlined NI43-101 compliant Inferred Mineral Resources totaling 166,000 ounces grading 0.511 g/t gold in 10,077,000 metric tonnes above a cut-off grade of 0.30 g/t gold at the combined Discovery South and Discovery North Zones (see Berkwood news release dated January 25, 2012 for details). The zones remain open for expansion and other known zones of gold mineralization have yet to be drilled.

Berkwood also has a 100% interest in the Cimandiri Gold Property in Indonesia, located 120km south of Jakarta, approximately 3 hours driving time. The project is located 9km southwest of the Cikondang Gold open pit mine. Soil sampling and geological mapping are being carried out on the property at present, and will continue to report material results as they are received.

If you are not currently on the Berkwood Resources email list, please visit our website by clicking here to opt-in to the list: http://www.berkwoodresources.com/contact.html . The Company will send out regular updates and news releases to everyone who asks to be on the list.

For additional information please contact:

Karim Sayani, Corporate Communications

Tel: (604) 662-7455 E-mail: [email protected]

Tom Steer, Media Relations Manager

Tel: (604) 681-5556 E-mail: [email protected]

On Behalf of Berkwood Resources

Brian Buchanan, President and Director

This Berkwood News Release contains certain “forward-looking” statements and information relating to Berkwood that are based on the beliefs of Berkwood’s management as well as assumptions made by and information currently available to Berkwood’s management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitation, competitive factors, general economic conditions, relationships with strategic partners, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. Except as required by law, Berkwood does not assume the obligation to update any forward-looking statement.

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 news release.

Source: http://www.marketwatch.com/story/berkwood-acquires-lac-gueret-east-graphite-property-in-quebec-2012-05-22?pagenumber=2

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Graphite Demand Seen Surging from Fuel Cells, Nuclear Reactors, Graphene

Posted by AGORACOM-JC at 11:12 AM on Tuesday, May 22nd, 2012

Demand for graphite is rising and is expected to mushroom as this allotrope of carbon – most commonly known as part of lead pencils – finds new applications. Currently, three growing applications of this mineral – lithium-ion batteries and fuel cells, nuclear reactors, and the potential uses of wonder material graphene – are making the quest for graphite heat up.

Jeb Handwerger, an analyst, told Mining Weekly this month that he expects global demand for graphite to increase exponentially over the next few years from current production of about 1.1 million tons a year, more than 70 percent of which comes from China. He said demand could reach 1.6 million tons in five years, thanks to demand just from lithium-ion batteries, which use much more graphite than lithium.

Lithium-ion batteries, fuel cells

Electric vehicles, the buzzword of our times, could mean a surge in demand for high-grade flake graphite in the coming years as these green vehicles will be powered by lithium-ion batteries. While no concrete statistics are available, Brent Nykoliation, Vice President of Business Development at Energizer Resources Inc. (TSX:EGZ,OTCBB:ENZR,FWB:YE5) commented that China is reportedly preparing to stock up enough graphite to put one million electric and hybrid-electric vehicles a year on the road starting in 2015. At an average of 130 pounds of graphite needed per electric car battery, about 300,000 tons of graphite will be required.

Battery makers prefer synthetic graphite for lithium-ion batteries, according to a Reuters article published earlier this month. Further, the battery industry accounted for less than five percent of natural graphite market demand in 2011. However, that could change as synthetic graphite can cost more than $20,000 a tonne, while unprocessed flake graphite costs $1,500 to $3,000 a tonne. Add in the processing and coating and the price is $8,000 a tonne, amounting to major savings compared to synthetic graphite.

Gary Economo, President and CEO of Focus Metals Inc. (TSXV:FMC), said in an article that the reason battery manufacturers prefer synthetic graphite for lithium-ion batteriess is because they “need consistency from their suppliers. So when they say synthetic graphite is easier to control, I think they’re saying their suppliers are controlling the quality of the material from one batch to another. When you order natural graphite from a distributor, you don’t know what mine it’s coming from. There’s a variety of batches, and it’s very difficult for a battery manufacturer to maintain quality control.” Economo added that as flake-graphite manufacturers offer high-quality and pure material to battery makers, the dynamics of the industry are bound to change.

Pebble-bed nuclear reactors

Most of the world’s graphite production is amorphous graphite, which is used in the steelmaking industry. It’s flake graphite, whose price has soared from $1,000 to $3,000 a ton in the last five years, that is driving the demand for new applications.

A new generation of nuclear reactors called pebble-bed nuclear reactors use large amounts of flake graphite. These reactors get their name from the pebble-sized spheres of graphite mixed with uranium that they contain. “This structure allows pebble bed reactors to produce power more efficiently – and safely – than conventional reactors,” Alex Cowie, editor of Diggers & Drillers, wrote recently. “This technology means nuclear reactors can be smaller, and as easy to run as turning a switch.”

China started building a fourth generation 210-megawatt nuclear reactor using high-temperature, gas-cooled pebble-bed technology last year, International Business Times reported earlier this month. Each pebble-bed reactor would use about 3,000 tons of graphite, and China plans to boost its nuclear power capacity to 150 gigawatts by 2030, the article said, adding that China’s current capacity is less than 50 gigawatts.

Is graphene our future?

Graphene is derived from graphite and is seen as the wonder material of this century as it conducts electricity and is one of the strongest, yet most lightweight materials known to mankind. It is touted as having the ability to profoundly impact many industries, from electronics to aerospace to autos. However, the miracles of graphene are mostly being seen in laboratories, and the price of manufacturing it needs to come down before widespread commercial use can occur.

Nearly 200 companies, including IBM (NYSE:IBM), Intel (NASDAQ:INTC), and Samsung (LSE:BC94), are invested in graphene research, and companies and governments are pumping billions into graphene research.

“IBM has already used graphene to produce the fastest computer chip in history,” Diggers & Drillers’ Cowie said. “The US Air Force and Navy are funding research to investigate its potential. Graphene chips may displace silicon chips in computers. If this happens, then graphite demand would go through the roof.”

Cowie added, “[i]f scientists are even half-right, graphene could change the world as we know it, and the price of graphite will soar.”

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

Source: http://resourceinvestingnews.com/36764-graphite-demand-seen-surging-from-fuel-cells-nuclear-reactors-graphene.html

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Graphite and Zinc Price Outlook is Favourable Through 2013

Posted by AGORACOM-JC at 9:13 AM on Tuesday, May 22nd, 2012

Vancouver BC – LOMIKO METALS INC. (TSX-V:LMR, OTC: LMRMF, FSE: DH8B) (the “Company”) owns 100% of the 5,407 Ha Vines Lake Zinc Property and has an agreement to acquire 100% of the Quatre Milles Graphite Property which has recently been expanded to 3,780 Ha. Both properties are subject to a 2% NSR. Exploration programs for both properties are planned for Summer 2012 and coincide with increased interest in both minerals.

Graphite – Demand Increases and Supply Risks

The price for flake graphite is $ 1,500 – 3,000 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. China, which produces about 80 per cent of the world’s graphite, is reducing its 200 amorphous graphite mines to 20 and creating a state-run monoploy which is already causing disruption in supply. Simon Moores of Industrial Minerals recently reported exports from China in January and February 2012 have been reduced by 55.3% and 60.1% from 2011 level exports from Hunan Province. It is not expected that current graphite mines in other countries could replace Chinese amorphous supply. An alternate is flake graphite. Use of this more expensive type of graphite could drive up prices for flake graphite even more..

Currently, the largest graphite mines produce only 20,000 tonnes per year. Predictions are that the current world-wide graphite consumption of 1.2 million tonnes per year will increase by 200,000 tonnes per year by 2015. This would require approximately ten mines of 20,000 tonnes per year to come on stream to meet demand. If changes to graphite mining in China take place, there could be added pressure on demand and a corresponding price increase as indicated by the increasing prices in the last two years.

Lomiko’s Quatre Milles Graphite Property

Lomiko announced it intends to complete up to 70 drill holes under a reccommended work program on the 1,660 Ha Quatre Milles Flake Graphite Property located in southwestern Quebec 175 km north-west of Montreal. Lomiko recently announced the purchase of an additional 2,180 Ha in the area to cover similar geology.

Lomiko’s drilling will focus on verifying the areas of historical high-grade graphite intersected previously by Graphicor on the property. The historical results are detailed below. It is Lomiko’s goal to complete both Phase I & II and establish a flake graphite resource at the Quatre Milles Property by December 2012.

Survey of Analyst Forecasts Indicates Zinc Prices To Increase

Energy & Metals Consensus Forecasts contains detailed individual analyst and average (mean) price forecasts for the next 10 quarters as well as the long-term outlook for over 30 of the leading analysts and forecasters in the world. The mean forecast predicsts a rise in the price pf 99.99% pure zinc by 23.2% by September 2012.

The main factor is the closure of large zinc mines in the coming years. China’s MinMetals Century mine will close within 4 years removing 500,000 tonnes per year from supply. Xstrata’s Brunswick mine in Canada, which provides 220,000 tonnes a year, is due to shut in early 2013. Other closures and in Kazakhstan, Canada and Ireland, among others, will be almost 1.5 million tonnes.

Zinc’s uses range from coatings to protect iron and steel through galvanization, to sheets for building and a range of chemical applications. The metal is used in the automotive and building and construction industries, with galvanized steel growth being the main driver of zinc demand. The total world zinc consumption was estimated to be 12.45 million tonnes in 2011.

At some point in 2012 or 2013, Japan is also expected to get a boost in zinc demand from reconstruction in the area, after the 2011 Tsunami.

Lomiko’s Zinc Discovery at Vines Lake

Zinc values in soil on the western side of Vines Lake were by far the most anomalous on the property, with values reported up to 2,429 ppm. One anomalous zone on the west side of the property measures roughly 122 hectares with an average zinc value of 425 ppm.

The Vines Lake Property is located in the Cassiar Gold Camp in the Liard Mining District of northwestern British Columbia. Lomiko Metals Inc. currently holds the rights to twelve contiguous mineral tenures comprising the property, totaling 5,407 Ha, (13,351 Acres). The 2011 Exploration program was conducted on the original 3 claims acquired in 2006 totaling 1,209 Ha (2,987 Acres). The Vines Lake property has year round paved road access as the property’s northern boundary crosses Hwy 37N, seven kilometers south of the unincorporated settlement of Jade City.

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

On Behalf of the Board

“A. Paul Gill”Chief Executive Officer

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Arrowhead Reports Graphite Horizon on Gateau Property, Quebec

Posted by AGORACOM-JC at 1:38 PM on Thursday, May 17th, 2012

VANCOUVER, BRITISH COLUMBIA–(May 17, 2012) – Arrowhead Gold Corp. (“AWH”) (TSX VENTURE:AWH) Arrowhead is pleased to announce that after a review of previous drilling completed on the Gateau property in 2008, it has been determined that drill hole GAT-08-01 intersected 48 metres of coarse-grained graphite mineralization from 57 to 105 m. The graphite horizon is within a basalt unit just below a contact with a quartzite unit. An airborne survey completed over the property in 2011 outlined an electromagnetic conductor approximately 7.5 km long in an east to west direction. This conductor is coincident with and appears to be caused by the graphite horizon. Up to five other conductive horizons were identified by the airborne survey and may also be related to graphite mineralization. The drilling was done to test a uranium target so no analytical work to measure the carbon content of the graphite was completed. The drill core is still on site at the property.

The Gateau property is located roughly 240 km northeast of Chibougamau and consists of 75 claims in one contiguous claim block covering 3,975 hectares of the Chibougamau Mining District of Quebec. Arrowhead intends to send a crew to the property in order to re-examine the graphite horizon in GAT-08-01 and prospect the electromagnetic conductors for graphite.

Mark Fekete, P.Geo., a “qualified person” as defined in Section 1.2 in and for the purposes of National Instrument 43-101, reviewed the technical content of this release.

On Behalf of the Board of Arrowhead Gold Corp.,

Steve Smith, President

This news release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results. Such statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements. The Company disclaims any intention or obligation to revise or update such statements.

To view the map associated with this press release, please visit the following link: http://media3.marketwire.com/docs/GateauAirborneMap.pdf.

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

Contact Information

 

Arrowhead Gold Corp.
Steve Smith
604 642-0115
604 642-0116 (FAX)
[email protected]
www.arrowheadgold.com

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China Carbon Graphite Reports First Quarter 2012 Results

Posted by AGORACOM-JC at 12:53 PM on Thursday, May 17th, 2012

NEW YORK, NY–(Marketwire – May 16, 2012) – China Carbon Graphite Group, Inc. (OTCBB: CHGI) (“China Carbon” or the “Company”), the largest wholesale supplier of fine-grain and high-purity graphite in China and one of the nation’s top manufacturers of carbon and graphite products, today announced its financial results for the first quarter ended March 31, 2012.

First Quarter (Q1) 2012 Highlights:

  • Gross profit margin grew from 22.5% in Q1 2011 to 29.0% in Q1 2012
  • Continues to advance its product mix optimization process, with higher margin products made from fine grain and high purity graphite key development priorities
  • Work in progress increased as high-end products made from fine grain and high purity graphite have longer production cycles

Summarized Q1 2012 Results:

Q1 2012 Q1 2011 CHANGE
Revenue $ 10.1 million $ 11.5 million -1.4 million
EBIDTA* $ 2.29 million $ 2.52 million -0.23 million
Net Income $ 0.25 million $ 0.33 million -0.08 million
Adjusted Net Income $ 0.91 million $ 0.63 million 0.28 million
EPS (Diluted)** $ 0.01 $ 0.01 –
Adjusted EPS $ 0.04 $ 0.03 0.01
* Please see the accompanying Non-GAAP EBITDA and Adjusted Net measurements below the “Business Outlook Section.”
** Earnings per diluted share of $0.01 on 23.6 million shares. For Q1 2011, China Carbon reported fully diluted earnings per share of $0.01 on 22.6 million shares.

“We continued to focus on developing our higher margin business this past quarter and see an improvement of gross profit rate and a deduction of our general and administrative expenses,” said Donghai Yu, Chief Executive Officer of China Carbon. “When comparing Q1 2011 with Q1 2012, we raised the percentage of our sales of fine grain and high purity graphite products, which are both higher margin products compared to our other business segment, graphite electrodes, while running at 75% of our 30,000 ton annual production capacity. Moreover, when further comparing these two quarters, raw material prices continued to increase, resulting in the average unit-selling price of our products increasing 49 percent with the average unit-selling price of our high purity graphite products increasing 47 percent in particular. We anticipated this trend and were able to offset rising graphite prices by making advance deposits to suppliers with available cash to lock in favorable prices.”

Mr. Yu added, “While our increase in inventories this past quarter is a reflection of the rise in the cost of raw materials, it is also a result of an increase in the amount of our work in progress. Our high-end products made from fine grain and high purity graphite require longer production cycles, causing our work in progress to increase during the quarter. We feel comfortable with our order book that the robust demand for our fine grain and high purity graphite products will continue into 2012, and we anticipate that we will see improved demand for our ultra-high graphite electrodes during this time as well.”

First Quarter 2012 Financial Results

Revenue

China Carbon had sales of $10.1 million in Q1 2012 compared to sales of $11.5 million in Q1 2011, a decrease of $1.4 million. This decrease was mainly attributable to a decrease of $654,030 in the sales of the Company’s low-end graphite electrodes products, as well as a $223,034 decrease in sales of China Carbon’s other products, during Q1 2012, which is a reflection of the Company’s decision to focus on the manufacturing and selling of its higher margin products.

China Carbon’s Q1 2012 sales included $1.1 million in graphite electrodes, $4.5 million in fine grain graphite, and $4.4 million in high purity graphite. In Q1 2011, the Company’s sales included $1.8 million in graphite electrodes, $4.7 million in fine grain graphite, and $4.6 million in high purity graphite. When further comparing Q1 2011 with Q1 2012, the average unit-selling price of China Carbon’s products increased 49% and the average unit-selling price of its high purity graphite products increased 47%. The increase in the average unit-selling price of high purity graphite is due to a large demand for such products in the market in addition to an increase in the cost for raw materials. The manufacturing of solar and mold products increased the demand for China Carbon’s products as raw materials during this time as well.

Cost of Sales & Gross Margin

China Carbon’s cost of goods sold consists of the cost of raw materials, utilities, labor, and depreciation expenses in its manufacturing facilities. The Company’s cost of goods sold was $7.1 million in Q1 2012 compared to cost of goods sold of $8.9 million in Q1 2011, a decrease of $1.8 million. This decrease was directly associated with the decrease in China Carbon’s sales.

China Carbon’s gross margin however increased from 22.5% for Q1 2011 to 29.0% for Q1 2012. This increase reflects the variance in China Carbon’s product mix, which is attributable to an increase of percentage in the Company’s sales of fine grain graphite products and high purity graphite products, which are higher margin products compared to graphite electrodes and other products.

EBITDA

China Carbon’s EBITDA in Q1 2012 was $2.29 million compared to $2.52 million in Q1 2011, a decrease of $0.23 million or 10.0%. EBITDA includes warrant expenses and non cash stock compensation totaling $658,662 for the three months ended March 31, 2012.

Net Income

As a result of the factors described above, China Carbon’s net income was $0.25 million in Q1 2012 as compared to $0.33 million in Q1 2011, a decrease of $0.8 million.

Business Outlook

“While we continue to grow our fine grain and high purity graphite businesses, we are confident that our top line results will be better in future quarters as the demand for graphite electrodes improves,” commented Mr. Yu. “We project increasing demand in the fine grain, high purity and ultra-high power graphite electrode markets to continue in 2012, especially from China’s evolving iron, steel, automobile, aerospace and defense industries. In particular, steel plants in China have been modernizing their current facilities with Electric Arc Furnaces, fueling the demand for large size ultra-high power graphite electrodes.”

“Notably, the margin for large size ultra-high power graphite electrodes is high due to the shortage of supply compared to demand,” remarked Mr. Yu. “Accordingly, we are working hard to get our new facility that specializes in the manufacture of fine grain and high purity graphite products completely up and running, as this facility will double our annual production capacity to 60,000 tons and will enable us to manufacture a new product: ultra-high power graphite electrodes with a diameter ranging from 600 to 800 millimeters. By improving our production capacity and capabilities in regards to these products, and by enhancing our ultra-high graphite electrodes business, we believe that we will see better financial results in upcoming quarters.”

Non-GAAP Financial Measures
Quarter Ended March 31
2012 2011
Net income $ 253,117 $ 333,049
Interest expense $ 1,229,745 $ 713,531
Tax – $ 750,000
D&A $ 805,333 $ 433,355
Warrant $ 479,563 $ (56,152)
Non-cash Stock Compensation $ 179,100 $ 292,266
Adjusted EBITDA $ 2,290,000 $ 2,522,201

The presentation of these non-GAAP financial measures should be considered in addition to our GAAP results and is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

Management generally compensates for limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of non-GAAP financial measures only in addition to and in conjunction with results presented in accordance with GAAP. We believe that these non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business.

About China Carbon Graphite Group, Inc.

China Carbon Graphite Group, through its affiliate, Xingyong Carbon Co., Ltd., manufactures graphite and carbon based products in China. The company is the largest wholesale supplier of fine-grain and high-purity graphite in China and one of the nation’s top overall producers of carbon and graphite products. Fine grain graphite is widely used in smelting for colored metals and rare earth metal smelting as well as the manufacture of molds. High purity graphite is used in metallurgy, mechanical industry, aviation, electronic, atomic energy, chemical industry, food industry and a variety of other fields. In September 2007, the Company was approved and designated by the Ministry of Science & Technology as a “National Hi-tech Enterprise,” a distinction that the Company still holds. Of the more than 400 carbon graphite producers in China, China Carbon is the only non-state-owned company to receive this honor. For more information, please visit www.chinacarboninc.com.

Safe Harbor Statement

This release contains certain “forward-looking statements” relating to the business of the Company and its subsidiary companies. These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors set forth in the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q.

PART 1 – FINANCIAL INFORMATION
Item 1. Financial Statements.
China Carbon Graphite Group, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
March 31,
2012		 December 31,
2011
(Unaudited) (Audited)
ASSETS
Current Assets
Cash and cash equivalents $ 369,701 $ 521,450
Restricted cash 6,844,280 11,694,820
Accounts receivable, Net 13,965,540 12,541,321
Notes receivable 332,953 188,880
Advance to suppliers 11,181,489 5,921,970
Inventories 41,846,277 37,430,248
Prepaid expenses 283,543 452,730
Other receivables, net of allowance of $24,614 562,178 513,000
Total current assets 75,385,961 69,264,419
Property And Equipment, Net 36,550,515 36,719,595
Construction In Progress 7,124,665 6,414,847
Land Use Rights, Net 10,498,909 10,699,059
Total Assets $ 129,560,050 $ 123,097,920
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable and accrued expenses $ 1,863,141 $ 1,340,498
Advance from customers 1,966,338 1,360,989
Short term bank loans 45,893,200 45,488,600
Notes payable 10,798,400 16,763,100
Other payables 3,294,113 3,227,067
Loan from unrelated parties 9,331,437 –
Dividends payable 33,117 28,099
Total current liabilities 73,179,746 68,208,353
Amount Due To A Related Party 5,672,033 5,542,855
Warrant Liabilities 654,368 174,805
Total Liabilities $ 79,506,147 $ 73,926,013
Redeemable convertible Series B preferred stock, $0.001 par value; 3,000,000 shares authorized; 331,810 and 426,110 shares issued and outstanding at March 31, 2012 and December 31, 2011, respectively $ 398,172 $ 511,332
Stockholders’ Equity
Common stock, $0.001 par value; 100,000,000 shares authorized 23,495,708 and 22,981,408 shares issued and outstanding at March 31, 2012 and December 31, 2011, respectively $ 23,495 $ 22,981
Additional paid-in capital 17,426,463 17,054,045
Accumulated other comprehensive income 8,367,439 7,943,542
Retained earnings 23,888,106 23,640,007
Total stockholders’ equity 49,665,731 48,660,575
Total Liabilities and Stockholders’ Equity $ 129,560,050 $ 123,097,920
The accompanying notes are an integral part of this statement.
China Carbon Graphite Group, Inc and Subsidiaries
Condensed Consolidated Statements of Operations and Comprehensive Income
For the Three Months Ended March 31, 2012 and 2011
(Unaudited)
Three months ended March 31,
2012 2011
Sales $ 10,061,210 $ 11,463,335
Cost of Goods Sold 7,143,606 8,883,262
Gross Profit 2,917,604 2,580,073
Operating Expenses
Selling expenses 46,798 49,863
General and administrative 851,399 1,554,062
Depreciation and amortization 57,004 46,601
955,201 1,650,526
Operating Income Before Other Income (Expense) 1,962,403 929,547
Other Income (Expense)
Interest expense (1,229,745 ) (713,531 )
Interest income 22 –
Other income, net – 60,880
Change in fair value of warrants (479,563 ) 56,152
(1,709,286 ) (596,499 )
Net Income $ 253,117 $ 333,049
Dividend Distribution (5,018 ) –
Net Income Available To Common Shareholders $ 248,099 $ 333,049
Other Comprehensive Income
Foreign currency translation gain 423,897 268,248
Total Comprehensive Income $ 677,014 $ 601,297
Share Data
Basic earnings per share $ 0.01 $ 0.02
Diluted earnings per share $ 0.01 $ 0.01
Weighted average common shares outstanding,
basic 23,315,645 21,630,421
Weighted average common shares outstanding,
diluted 23,647,455 22,615,787
The accompanying notes are an integral part of this statement
China Carbon Graphite Group, Inc and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2012 and 2011
(Unaudited)
Three months ended March 31,
2012 2011
Cash flows from operating activities
Net Income $ 253,117 $ 333,049
Adjustments to reconcile net cash provided by operating activities
Depreciation and amortization 805,333 433,355
Stock compensation – 266,100
Change in fair value of warrants 479,563 26,166
Change in operating assets and liabilities
Accounts receivable (1,310,189 ) (4,042,607 )
Notes receivable (142,124 ) 45,906
Other receivable (44,531 ) (48,297 )
Advance to suppliers (5,197,009 ) (4,954,347 )
Inventories (4,075,391 ) (853,608 )
Prepaid expenses 169,188 121,970
Accounts payable and accrued liabilities 594,274 220,570
Advance from customers 592,123 2,774,722
Taxes payable (110,310 ) 488,552
Other payables 133,762 737,742
Net cash used in operating activities (7,852,196 ) (4,450,727 )
Cash flows from investing activities
Acquisition of property and equipment (15,831 ) (4,572 )
Construction in progress (651,528 ) (1,554,319 )
Net cash used in investing activities (667,359 ) (1,558,891 )
Cash flows from financing activities
Proceeds from issuing common stock 50,000 –
Proceeds from warrants exercise – 371,398
Dividends paid for series B preferred stock – (49,388 )
Proceeds from short-term bank loans 4,755,000 5,783,600
Payment to short-term bank loans (4,755,000 ) (684,900 )
Proceeds from loan from unrelated parties 9,313,808 –
Proceeds (payments) for related party 79,727 (436,462 )
Proceeds from stock not yet issued 77,500 –
Restricted cash 4,945,200 (3,698,460 )
Proceeds from notes payable 10,778,000 5,479,200
Payment to notes payable (16,880,250 ) –
Net cash provided by financing activities 8,363,985 6,764,988
Effect of exchange rate fluctuation 3,819 2,932
Net (decrease) increase in cash (151,749 ) 758,303
Cash and cash equivalents at beginning of period 521,450 296,312
Cash and cash equivalents at end of period $ 369,701 $ 1,054,615
Supplemental disclosure of cash flow information
Interest paid $ 984,830 $ 713,531
Non-cash activities:
Deemed preferred dividend reflected in paid-in capital $ – $ 57,500
Preferred stock conversion to common stock $ 94 $ 613
Reclassfication of warrant liability with equity $ – $ 14,993
Issuance of common stock for compensation $ – $ 266,100
The accompanying notes are an integral part of this statement.

Contact Information

 

Investor Contact:

Mr. Kevin Fickle
President
NUWA Group, LLC
Tel: +1-925-330-8315
Email: [email protected]

Company Contact:

Mr. Donghai Yu
China Carbon Graphite Group, Inc.
Tel: +1-626-589-6525
Email: [email protected]

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Uranium North Discovers Significant Graphite on Amer Property and Stakes New Ground

Posted by AGORACOM-JC at 10:51 AM on Wednesday, May 16th, 2012

VANCOUVER, BRITISH COLUMBIA–(May 16, 2012) – Uranium North Resource Corp. (“Uranium North” or the “Company”) (TSX VENTURE:UNR) announces that it has identified significant amounts of graphite on its 100% owned Amer Lake Property in Nunavut. Multiple graphite bearing beds ranging from 15 to 25 metres thick have yielded up to 4.13% graphite.

Graphitic beds have been intersected by two reverse circulation drill holes 3.1 kilometres apart as well as a core hole drilled 15 kilometres to the east. The same graphitic units have been identified in three surface outcrop exposures spanning an area of 22 x 10 kilometres.

The graphitic rocks are flat lying and occur in a basin scale stratigraphic unit that is a minimum of 60 metres thick and is expected to extend over a 26 x 8 kilometre area based on geological mapping.

“We are quite excited by the fact that the graphite at Amer occurs in thick extensive beds, not small thin veins. The thickness, grade and lateral extent of these graphite beds clearly represents a large scale deposit target for the company and depending on the nature of the graphite; this is a very significant discovery. With the future outlook of graphite and uranium, the Amer Lake property is highly valuable,” says Mark Kolebaba, President and CEO of Uranium North Resources.

Six test samples were randomly selected from two reverse circulation drill holes 3.1 kilometres apart and submitted for analysis to determine the graphitic carbon (Cg) content. The results from the analysis are shown in the table below.

Sample (Cg) %
54268 4.13
54271 3.2
54272 3.84
89474 0.6
89477 3.22
89482 3.77

Analysis method is Infrared

Samples have been submitted for mineral liberation analysis (MLA) to determine the nature and particle size of the graphite.

Graphite beds that outcrop at surface along the paleo-basin margins should be mapped in detail and sampled systematically. A 2000 to 3000 metre drill program with drill hole spacing at 500 to 1000 metres is required to test the grade, thickness and lateral extent of the graphite units across the basin.

Graphite at Amer Lake was recognized during the company’s uranium exploration program. The presence of graphite was investigated as a reducing environment favorable for uranium precipitation. This new graphite discovery increases the attractiveness of the Amer property where we have an existing uranium resource with potential to expand. Since the discovery of graphite on Amer, the company has staked additional claims over areas with known outcropping graphitic rocks.

The project is 70 kilometres from an all season road to Baker Lake and sea access.

Bruce Kienlen, P.Geol, and Graham Gill, P.Geo, are Qualified Persons as defined by National Instrument 43-101 reviewing the data in this news release.

On behalf of Uranium North Resources

Mark Kolebaba, President and CEO

Forward-Looking Information

This release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, that address exploration drilling, activities and events or developments that Uranium North Resources Corp. (the “Company”) expects to occur, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration successes, and continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

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

Contact Information

 

Uranium North Resource Corp.
Heather Kays
Corporate Communication
604-484-7120
604-484-7143 (FAX)
[email protected]
www.uraniumnorth.com

Source: http://www.marketwire.com/press-release/uranium-north-discovers-significant-graphite-on-amer-property-and-stakes-new-ground-tsx-venture-unr-1658046.htm

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Lomiko CEO Paul Gill on Quebec graphite acquisition

Posted by AGORACOM-JC at 2:18 PM on Tuesday, May 15th, 2012

Lomiko Metals Inc TSXV:LMR announced a letter of agreement to acquire a 100% interest in the Quatre Milles West Property in south Quebec. Under the agreement, Lomiko pays three vendors a total of $3,000 and issues 1.8 million shares. The vendors retain a 2% NSR, half of which Lomiko may buy for $1 million.

The 2,180-hectare property covers the western extension of the geology that hosts the graphite-bearing structures shown in historic drilling at the company’s Quatre Milles Property. The combined property now covers two claim blocks, one eight kilometres by seven kilometres, and the other seven kilometres by five kilometres, bringing the expanded Quatre Milles Property from approximately 1,600 hectares to 3,780 hectares.

Lomiko plans an exploration program for the Quatre Milles Property including mapping, prospecting and drilling to test and confirm historic high-grade graphite intersected previously by Graphicor Resources in a 26-hole, 1,625-metre drill program.

Given the price tag—there’s no major cash outlay and the shares over time are very reasonable—we’ve basically doubled our potential here with a similar geological setting—Paul Gill

CEO Paul Gill tells ResourceClips.com, “The geologist we’re working with, Jean-Sébastien Lavallée, identified this property a little while ago and brought it to our attention. He’s part of a group that includes Zimtu Capital TSXV:ZC and the vendor of the original Quatre Milles Property, Michel Robert. Given the price tag—there’s no major cash outlay and the shares over time are very reasonable—we’ve basically doubled our potential here with a similar geological setting. It’s perfect for us. The EM conductor over similar geology at the original Quatre Milles Property has good results, so we anticipate good results from the new property. So, after we issue 1.8 million shares and pay $3,000, we’ll own that property 100%, subject to a 2% NSR.”

Lomiko has a $307,000, 16-hole drill program scheduled for its original Quatre Milles Property.

“We’ll be working the first property, so we’ll have our crew do some initial work on the new property and identify targets there too,” Gill says. “Probably the first thing to do there is an EM survey. The crew will be on the original property very shortly, and drilling could start in June.”

The company also has the 5,407-hectare Vines Lake Property in north BC, adjacent to China Minerals Mining’s TSXV:CMV Table Mountain Project.

“China Minerals is doing $3 million of work on their property,” Gill points out. “We’re going to do some work up there too. We’ve had good results, and I’m about to put a new PowerPoint presentation on our website with the zinc, gold and silver finds at Vines Lake. It’s very interesting that there’s an electromagnetic anomaly in the very far northeast of our property, which is nearest to the Table Mountain Mine. There’s actually a hole that occurs in the rock based on the electromagnetics. That’s the area where we had intensive gold and silver finds, so that’s very good news because it looks like there’s a faulting or some sort of system that pushed up through those rocks. So we want to explore that. We want to look at the large zinc anomaly as well for outcrops.”

Gill concludes, “We’re excited about the upcoming drill program at Quatre Milles, and we’re at the point where we can add a lot of value to the company based on the results.”

View Company Profile

Contact:
A. Paul Gill
CEO
604.729.5312

Read a feature story about Lomiko Metals.

Disclaimer: Lomiko Metals Inc is a client of OnPage Media, and the principals of OnPage Media may hold shares in Lomiko.

Source: http://resourceclips.com/2012/05/15/lomiko-ceo-paul-gill-on-quebec-graphite-acquisition/

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Logan Copper Acquires Former High Grade Noranda Graphite Property

Posted by AGORACOM-JC at 5:03 PM on Monday, May 14th, 2012

Up to 85 % Graphite drilled

DELTA, BC, May 14, 2012  – Logan Copper Inc. (the “Company”, “Logan Copper”, “LC”), (TSX.V: LC) is pleased to announce the acquisition of a third Graphite property in Quebec.

This new property, the Carheil Graphite Property (Carheil) was acquired through Quebec’s Gestim system. Carheil encompasses approximately 5,400, 100% owned, contiguous acres with no NSR or work commitment attached.

The Carheil property is located approximately 280 km NNW of Val-d’Or, QC and is approximately 120 km north of La Sarre, QC.  Aurizon Mines Ltd.’s producing Casa-Berardi Gold Mine is located approximately 19 km south of LC’s Carheil property.  There is an existing road crossing the property which leads to the BHP Billiton Ltd.’s past-producing Selbaie Zinc Mine which is located approximately 20 km east of LC’s Carheil property.

Mr. Thal S. Poonian, President and CEO of Logan Copper commented “LC believes that the Carheil property has the potential to become its flagship graphite property.  We look forward to verifying the historical results and defining the project potential”.

A percentage (6.67% or 360 acres) of the 5,400 acre Carheil property was formerly explored by Noranda Exploration Co. Ltd. (Noranda).  In August 1975 Noranda completed a geophysical survey covering approximately 300 acres of the Carheil graphite property.

Noranda completed two diamond drill holes in the surveyed area in May of 1978.  The first hole was lost in overburden while the second hole number 2-78 was drilled to a depth of 497 feet.  Historical diamond drill core log report number GM33862 returned results as follows:

 

“157 – 227 feet about 5% graphite
240 – 425 feet 20 – 60% graphite
428 – 453 feet about 85% graphite”

The hole was drilled at dip collar -55o and the core size was AQ.

The historical, non-43-101 compliant, geophysical survey report filed with the Quebec Ministry of Natural Resources, report number GM: 31366, reported the following.

Magnetic Survey

Assessment Data

 

“The instrument used was a McPhar M700 Fluxgate Magnetometer.  Readings were taken at all of the 100′ stations. The usual diurnal and datum adjustments were made and the corrected results were plotted and then contoured.  Som 355 (base, sub-base and line) stations were read in the period August 4-12, 1975 by personnel of Noranda Exploration Co.”

Magnetic Results

 

“The magnetic suggest a formational strike of 125o.   There is one closure inside the 1000 gammae contour.  This extends from about 1550N on Line 16E to about 1500N on Line 20E.”

Horizontal E. M. Survey

Assessment Data

 

“The instrument used was a Geonics EM17 Horizontal Loop.  Readings were taken at all of the 100′ line stations.  Some 245 of these were taken concurrently with the magnetic work by” Noranda’s “crew.”

E.M. Results

“Three conductors were located.  These are: –

 

AA. This intermittent conductor possibly extends across the grid.  It is rather weak in amplitude and the conductivity is only fair.  On Lines 12E and 16E it lies on the north flank of the magnetic closure mentioned above.  The strike is approximately 125o.
BB. This conductor may be traced across the grid.  The amplitude and conductivity are good to excellent especially on Lines 8E, 12E, 16E, 24E, 28E and 32E.  The strike is as above.
CC. This conductor has fair amplitude and conductivity.  The apparent strike of 60o is rather puzzling unless one assumes the conductor is caused by a fault or shear.”

Conclusion

 

“Conductor BB should be drilled on Line 16E.  Sufficient footage should be allowed to cover the suggested conductor width of 150′ and the possible intersection of conductor CC.”

The historical data quoted herein was obtained from government files and other historical data and has not and cannot be verified as it is based on reports obtained and prepared by previous operators. The Company has not completed the work necessary to verify the results and is not treating the results as NI 43-101 defined resources verified by a qualified person. The Company views this historical data as relevant and a significant indication of the projects mineral potential. This property will require considerable further evaluation which the Company intends to carry out in due course.

LC’s technical team, led by Mr. Roger LeBlanc, P. Eng, Geo., will review the available data and commence exploration of the Carheil property as soon as possible.  LC’s goal is to obtain a 43-101 compliant resource estimate for this property.

Roger LeBlanc, P.Eng, is a qualified person pursuant to National Instrument 43-101, and has reviewed and approved the technical disclosure of this news release.

Historical Reserves, Resources, or Results

Any data regarding historical reserves, resources, or results cited herein as historical are not compliant with National Instrument 43-101- Standards of Disclosure for Mineral Projects (“NI 43-101″) nor current unless otherwise specified. They are derived from historical documents and represent that at sometime in the past the then current operators undertook an estimate of the size or metal content of the deposit based on economic factors that existed at that time. If they are included herein, it is for illustrative purposes only and should not be relied upon as factual.

Investors are cautioned that a qualified person has not completed sufficient work and the information has NOT undergone rigorous geological review and QA/QC testing by a Qualified Person as defined in NI 43-101. Neither the Company nor its personnel treat this data as a current mineral resource, reserve, or results as defined under NI 43-101, nor do they rely upon them for evaluation purposes. However, this data is being used as a guide to exploration as the Company develops data to support any potential future mineral resource estimates in accordance with the requirements of NI 43-101.

WE SEEK SAFE HARBOR

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