Update: Effective May 25, 2012, Focus Metals began trading as Focus Graphite Inc TSXV:FMS. The stock symbol remains the same.
Focus Metals Inc TSXV:FMS and SOQUEM Inc announced assays from the Kwyjibo polymetallic property in northeastern Quebec. Results include
2.4% total rare earth oxides over 48.8 metres (including 3.4% TREO over 24.3 metres)
1.8% TREO over 32.5 metres (including 5.88% TREO over 1 metre)
1.64% TREO over 20.6 metres (including 7.05% TREO over 0.8 metres)
3.61% TREO over 33.1 metres (including 8.68% TREO over 1 metre)
Focus has an option to earn a 50% interest in the Kwyjibo property and SOQUEM is the project operator. A two-phase follow-up exploration program on the property is currently being designed for the summer 2012. An NI 43-101 resource estimate will be considered following the results.
Focus President/CEO Gary Economo tells ResourceClips.com, “About 12 years ago Kwyjibo was drilled, but at the time they weren’t really looking for rare earths. So last year we did a bunch more drilling, but before the drilling we re-assayed the old core, and we found that they had very good showings of rare earths. We decided last year to take on a more diligent drill program and try to find what was in a number of anomalies that were showing up on some of the testings that were previously done. The results today are the results of that drilling. Originally, we thought it was copper, but what we’re finding is very strong iron phosphate, light and heavy rare earths.
The government is very supportive, and we have great relationships with the local municipalities. It’s just a wonderful region to do business in—Gary Economo
“This summer we’ve already scheduled a drill program to do some infill drilling and to allow us to come up with a resource estimate. There’s also some VTEM testing that’s going to be done. We’ll have the drilling completed this summer, and we should be able to have a resource estimate by the end of 1Q 2013.”
Economo says of the infrastructure at Kwyjibo, “It’s not too bad, but it’s not too great either. There are no roads, so it’s a helicopter program. But the key thing is that if it makes sense to put it into production some day, the railroad is only 25 kilometres away. So it’s fairly easy to build a railhead and then a 25-kilometre dirt road to the property.”
Focus also announced the closing of a $10-million private placement. Economo comments, “This was a flow-through financing. Six million of that will go into the Lac Knife [graphite] project this year, for drilling. About $1 million will go into Kwyjibo, and maybe another $700,000 to $1 million will go into our other 265 claims that we’ve acquired this year to get a better feel of what we have and where those projects could end up. The balance will be spent next year. We have until December 2013 to spend the $10 million. All our exploration expenses will be covered for this year and next year.
“For the most part, Quebec is a very easy place to do work,” Economo continues. “All the support is readily available in places like Sept-Îles and Baie-Comeau and the town of Fermont. So everything we need we have access to. The government is very supportive, and we have great relationships with the local municipalities. It’s just a wonderful region to do business in.”
Does Economo consider Focus fairly valued? “I believe that at any given instant [the market valuation] doesn’t tell you the true story of what’s behind a company. If I look at it today, my answer is absolutely not. At the same time, take into consideration what’s going on around the world. We as CEOs don’t look at all those issues when we value our company; we look at what we have, what we’re going to do, and what we want to accomplish. That’s how we value our businesses. But there are a lot of other issues that one needs to look at—and the market does that for us. The market always finds equilibrium.”
He concludes, “We’re very happy with our progress at Kwyjibo. It was a five year earn-in for 50% [ownership], and in the next month or so we’ll have accomplished that in just over two years. So we’re way ahead of where we wanted to be with this project, and we’re extremely happy with where we are today. And we’re happy with the support we’re getting from SOQUEM in their running of the project.”
Focus Metals Inc
613.691.1091 x 101
or Tony Brisson
613.691.1091 x 113
Disclaimer: Focus Metals is a client of OnPage Media and the principals of OnPage Media may hold shares in Focus.
by Ted Niles