Mason Graphite’s grade even surpasses Lac Knife
by Greg Klein
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Graphite’s back in the news with two major announcements, one of which shows a new contender fast approaching Canada’s vanguard of advanced projects. On October 30, the day after Focus Graphite TSXV:FMS released its much-anticipated PEA, Mason Graphite TSXV:LLG hit the world stage—or at least the TSX Venture exchange.
The result of a reverse takeover with a capital pool company, POCML 1 Inc, Mason’s trading debut opened October 30 at $0.90 and dropped to $0.68 before closing at $0.75. The newcomer’s Lac Guéret project in northern Quebec overtakes Focus flagship Lac Knife’s claim to have the highest-known graphite grade.
The 11,630-hectare Lac Guéret has measured and indicated resources of 7.6 million tonnes grading 20.4% carbon and an inferred resource of 2.76 million tonnes grading 17.29%. CEO Benoit Gascon tells ResourceClips, “I visited many graphite mines that operated or still operate during my 20 years. This one is unique for that level of grade.”
Gascon was president of Stratmin Graphite, former owner of Quebec’s Lac-des-Îles Mine, the largest of Canada’s two producing graphite mines. In 2002 Gascon negotiated Stratmin’s takeover to form Timcal Graphite & Carbon, which now operates the mine. Gascon stayed with Timcal in senior roles.
Mason picked up Lac Guéret earlier this year from Cliffs Natural Resources, which got the property as part of its 2011 acquisition of Consolidated Thompson. The price tag for Mason totals $1.5 million in warrants and $15 million cash, which includes $2.5 million on completing feasibility and another $5 million on beginning commercial production.
Lac Guéret’s resource was calculated last summer, based on 2006 drilling. Any day now an 18,000-metre drill program will wrap up, with one resource update planned for December and another for Q1 2013. December’s also slated for a PEA. Looking further ahead, feasibility is scheduled for Q3 2014 and commercial production in Q4 2015.
As for community relations, the company hopes to have an impact benefit agreement finalized with the Pessamit Innu band by Q3 2013.
Lac Guéret is a flake graphite deposit, says Mason’s corporate development officer Simon Marcotte. Early indications show that “large- and medium-sized flake together is north of 60% [of the resource], but we’re hoping it’ll be more than that. We’ll have a better idea by year-end,” he says.
Marcotte doesn’t understate his optimism about the resource updates. The project will boast “not only the highest grade of graphite in the world but also the biggest deposit by far—no two ways about that—by a very significant margin.”
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