Sunday 4th December 2016

Resource Clips


Posts tagged ‘PEA’

Graphite gains ground

November 1st, 2012

Major announcements show projects moving forward

by Greg Klein

Next Page 1 | 2

Last spring was a tempestuous time for graphite watchers. Enthusiasm had built the previous year and climbed sharply through the early months of 2012. Cynics must have rejoiced not only to see stocks fall as they did, but when they did—almost coinciding with April Fool’s Day. But for all that, companies persevered with both early-stage and more advanced projects. In the latter category, this week has seen a number of significant announcements.

First off were Focus Graphite TSXV:FMS with its PEA and Mason Graphite TSXV:LLG with its TSXV debut (both reported here). Following closely were Northern Graphite’s TSXV:NGC mine closure plan and Energizer Resources’ TSX:EGZ final drill results prior to an initial resource estimate.

Major announcements show projects moving forward

Drill and trench results from Energizer Resources’ Molo flake graphite
deposit are being compiled into the project’s first resource estimate.

With its October 31 MCP announcement, Northern Graphite hopes to begin production at its Bissett Creek Project in Q2 2014. Pending acceptance by Ontario’s Ministry of Northern Development and Mines, and assuming financing falls into place, plant construction would begin next spring.

“Production in Q2 2014 is an attainable goal and should coincide with improving economies, a recovery in the graphite market and higher graphite prices,” the company stated.

Northern describes the MCP as “an all-encompassing document that describes, in detail, the nature of the operations that will be carried out, the current baseline environmental conditions and the company’s plan for rehabilitating the site and returning it to its natural state at the end of mining operations.”

The company estimated its financial assurance at $1.6 million “which reflects the relatively benign nature of the operation, neutral tailings and the ability to practice progressive rehabilitation due to the shallow, flat-lying nature of the deposit.”

The southeastern Ontario project has probable reserves of 18.977 million tonnes, but with an unimpressive 1.89% grade. Last April, however, CEO Gregory Bowes told ResourceClips that the grade was offset by “the high percentage of large flakes, the high purity, very low strip ratio, good infrastructure and the fact that our project is very scalable.”

Bissett Creek’s July feasibility study projected annual production of 4.2 million tonnes averaging 2.22% carbon, for an average of 18,600 tonnes of concentrate grading 94.5% for the first five years. Total mine life is estimated at 23 years.

Next Page 1 | 2

New stock on the block

October 30th, 2012

Mason Graphite’s grade even surpasses Lac Knife

by Greg Klein

Next Page 1 | 2

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.

Mason Graphite’s grade even surpasses Lac Knife

Mason Graphite didn’t begin TSXV trading until October 30
but plans to fast-track its Lac Guéret Project towards production.

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.”

Next Page 1 | 2