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Graphite Digest — June 8, 2012

June 8th, 2012

June 8, 2012

Big North completes SE Ontario EM Survey, ends IR Agreement

Big North Graphite Corp TSXV:NRT announced June 8 completion of an airborne electromagnetic survey of 1,187 line-kilometres with 100-metre spacing over its Griffith and Brougham properties in southeast Ontario. Preliminary data suggests both properties show conductors, including coincident features to the known graphite showings. Final data is expected next week and will be used to direct ground geophysics, mapping and sampling.

The company also announced it has terminated an investor relations agreement with Trident Financial announced on April 19. The Griffith-Brougham land package covers 6,500 hectares in a region that includes Ontario Graphite’s Kearney Mine and Northern Graphite’s TSXV:NGC Bissett Creek Project.

Read an interview with Big North Graphite President/CEO Spiro Kletas.

Galaxy completes Airborne Surveys of Quebec Graphite Project, approves Name Change

Galaxy Capital Corp TSXV:GXY announced June 7 completion of helicopter-borne electromagnetic and magnetometer surveys on its Buckingham Property in west Quebec. Preliminary results from the 162-line-kilometre survey are expected within three weeks and will be used to direct a program of ground geophysics, prospecting, mapping and sampling.

On June 6, the company announced shareholder approval of a change of name to Galaxy Graphite Corp. Contingent on TSXV approval, the stock symbol will remain the same. The 1,324-hectare Buckingham Property consists of two former mines 40 kilometres east of Ottawa. The host rocks for both deposits are graphitic crystalline marbles, similar to the host stratigraphy at Timcal Graphite & Carbon’s Lac-des-Îles Graphite Mine, the company has stated.

Rare Earth Metals begins Ground EM Survey on NW Ontario Graphite Property

Rare Earth Metals Inc TSXV:RA announced June 7 it has begun line-cutting and a ground electromagnetic survey on its Manitouwadge Graphite Property in northwest Ontario. The company intends to determine the strike length and continuity of graphite zones outlined by an EM survey flown in 1989. Three graphite horizons have been identified so far through historic work and recent trenching. The zones range from four to 12 metres thick with chip samples showing 2.04% to 4.18% carbon. Screen tests on the higher-grade composite sample confirmed the presence of +65 mesh and +35 mesh flake graphite. Additional metallurgical results are pending.

The company has two advanced projects in Ontario and Labrador, with rare earth elements, niobium, beryllium, zirconium and iron ore. The company has also acquired the Coldwell Complex and the Lavergne-Springer REE Prospect, both in north Ontario.

Standard Graphite reports EM Conductors on Quebec Graphite Property

Standard Graphite Corp TSXV:SGH announced June 5 airborne geophysical results from its Kiamika Property in west Quebec. Initial results confirm that surface occurrences are associated with a conductor crossing the entire property over a 3.5-kilometre strike length. A second conductor 750 metres east replicates the first and expands the project’s potential, the company stated.

The 888-line-kilometre TDEM survey included three other properties: Preston, 31 Milles and Notre Dame. Results are pending for those properties and will help determine follow-up work scheduled for later this month. All four properties lie within 90 kilometres of Standard’s flagship Mousseau East Project in the Central Metasedimentary Belt of the Grenville Geological Subprovince. Mousseau East has a 1992 non-43-101 resource estimate showing 598,480 tonnes grading 8.29% carbon proven, 219,450 tonnes grading 8.13% probable and 288,760 tonnes grading 7.85% possible.

Read a feature story about Standard Graphite.

Focus to acquire Brazil Graphite Project from Lara Exploration

Focus Graphite Inc TSXV:FMS and Lara Exploration Ltd TSXV:LRA announced June 4 a letter of intent in which Focus will acquire up to a 60% interest in the Canindé Graphite Project in Ceará State, northeast Brazil. Under the agreement’s first option, Focus may earn a 51% interest by issuing Lara a total of 500,000 shares and spending $2.5 million within three years. Exploration must include an EM survey and 2,000 metres of drilling.

Under the second option, Focus may earn an additional 9% interest by spending a total of $4.5 million within five years, including completion of an additional 5,000 metres of drilling and a positive PEA.

If Focus declines or fails to exercise the second option, the two companies will create a 51/49 joint venture. If Focus exercises the second option, the companies will create a 60/40 JV. Both companies will fund exploration proportionately and the party holding majority interest will be deemed the project operator. If a party’s interest falls to less than 10%, its interest in the JV will be converted to a 2% production royalty.

Canindé is subject to a 1% royalty payable to a third party on gross revenue up to R$750,000 (750,000 Brazilian reais, approximately $369,000) as well as a one-time payment of R$200,000 (approximately $99,000) payable to the third party on completion of a non-NI 43-101-compliant Economic Graphite Reserve Estimate as defined by Brazil’s Departamento Nacional de Produção Mineral.

The 15,615-hectare project hosts 22 surface graphite occurrences discovered by Lara in mid-2011. The occurrences define a 16-kilometre-long graphitic corridor in high-grade metamorphic rocks. Individual graphite occurrences range from less than one metre to 10 metres wide and host grades ranging from 1% or 2% disseminated graphite in paragneiss and schist (mostly flakes), to over 50% graphite in narrow lenses in gneiss, schist, pegmatitic migmatites and brecciated horizons in gneiss. Surface grab samples from 15 of the occurrences show grades ranging from less than 1% up to 42%. The project is accessible by road.

The company’s flagship Lac Knife Graphite Project in northeast Quebec is scheduled for a PEA this month. The company states that it hopes to have offtake agreements and financing to begin mine construction following the PEA.

Read an interview with Focus President/CEO Gary Economo.

Read an interview about Focus’ Kwyjibo REE-Copper Project.

Read a feature story about Focus Graphite.

Energizer, Malagasy report Madagascar Graphite Intersections up to 434m

Energizer Resources Inc TSXV:EGZ and Malagasy Minerals Ltd announced June 4 five graphite intersections on the Molo Deposit of their Joint Venture Property in Madagascar. Intersections came to 434 metres, 295 metres, 220 metres, 150 metres and 51 metres. Core from the five holes has been sent for assaying, with the first results expected within six weeks. Metallurgical analysis of previous Molo samples showed jumbo-flake, +50 mesh graphite at an average purity of 93% carbon which can be liberated through simple crushing. The deposit begins at surface and extends to a vertical depth of over 300 metres, Energizer stated. The company plans an initial resource estimate for the Molo Deposit, which Energizer and engineering partner DRA Mineral Projects are targeting for open-pit production in early 2015.

Energizer holds a 75% interest and acts as operator on the JV Property, which surrounds Energizer‘s wholly owned Green Giant Graphite-Vanadium Property on three sides.

Read an interview with Energizer Resources VP of Business Development Brent Nykoliation.

Read feature stories about Energizer Resources’ vanadium deposit and its graphite deposits.

Canadian Platinum finds Saskatchewan Graphitic Argillite

Canadian Platinum Corp TSXV:CPC announced June 4 the presence of a thick sequence of graphitic argillite on its Peter Lake Copper-Nickel-PGE Project in northeast Saskatchewan. Examination of a 2009 airborne ZTEM survey and historic drillholes found conductors caused by graphitic argillite, the company stated. A sample assay of historic core showed 10.2% carbon and six grab samples from another historic hole averaged 4.5% carbon. Canadian Platinum drilled one of the ZTEM conductors in 2009, which intersected 142 metres of graphitic argillite and terminated in graphitic argillite. This drillhole and historic holes are currently being sampled to determine grades.

The project is North America’s largest mafic/ultramafic complex. The company’s mining claims in the area cover approximately 202,340 hectares.

By Greg Klein

Read previous Graphite Digests here

Disclaimer: Standard Graphite Corp and Focus Graphite Inc are clients of OnPage Media and the principals of OnPage Media may hold shares in those companies.

Graphite Digest — June 1, 2012

June 1st, 2012

June 1, 2012

“This isn’t a Bubble—Not Yet”

Writing in the May 30 edition of Morning Notes, Chris Berry remains cautiously optimistic about graphite stocks. Now tracking 44 companies with over 90 graphite projects, Berry’s index displays an obvious fall in share prices. It’s not just investors who are getting skittish, he reports. The graphite market itself has fallen, as Simon Moores reported in the online daily Industrial Minerals last week. Berry offers an additional way of looking at demand, through purchasing managers indices (PMIs). “If graphite is to be considered an industrial mineral and PMIs are reasonable gauges of industrial demand, the picture isn’t terribly promising in the near term,” he writes. “As an example, the HSBC China Flash PMI (an estimate of the official PMI data) registered at a 48.7 in May, which indicated the seventh straight month of economic contraction in China. Similar falling data points are to be found in other parts of the world, including Asian countries and the Eurozone. Generally, a score below 50 denotes economic contraction.”

Longer-term projections, however, have Berry more optimistic. Last week’s announcement that Graphit Kropfmuhl AG will reopen a German graphite mine for domestic production suggests “The company sees a solid future for high-purity graphite demand—something we should all remember as our graphite shares bear the brunt of near-term global economic uncertainty. Economic activity (aka growth) will return, and when it does, those companies with sound business models, sustainability and supply chains will be positioned to create shareholder wealth,” Berry argues.

The founder of House Mountain Partners concludes, “While we have heard talk about graphite being a bubble, we disagree—for now… That said, it behooves investors to pick companies in this space carefully, paying particular attention to cost sensitivities and the composition, or “footprint” [for example, flake size distribution, metallurgical results and marketability of the final product ], of a given deposit, as this can substantially improve economics.”

“Demand won’t grow fast enough” for everyone

In a Critical Metals Report interview reprinted May 29 in the Gold Report, Asbury Graphite Mills CEO Stephen Riddle says Chinese cutbacks in 4Q 2009 caught the industry off guard. “We’d just come out of the financial crisis, when everybody’s business dropped off by about 35%.” His company operates seven North American facilities that obtain graphite from selected mines and process it for customers. Demand notwithstanding, Riddle claims there are enough graphite resources outside China to meet needs for 100 to 200 years. He cautions that “Demand won’t grow fast enough” for all would-be graphite miners to into production.

“The bigger the flake…”

When it comes to graphite exploration, Australians are second only to Canadians. One ASX-listed company is Castle Minerals, whose CEO Michael Ivey told the Sidney Morning Herald that purity and flake size are key elements of a graphite deposit. “The bigger the flake the better. Don’t ask me why this is the case,” he reportedly said.

Lomiko announces $800K Private Placements of $500K and $300K Flow-Through

Lomiko Metals Inc TSXV:LMR announced June 1 a $500,000 private placement of two million units at $0.10. Each unit will consist of one common share and one warrant exercisable for a year at $0.15. The company will seek an additional $300,000 by issuing 2.5 million flow-through units which will consist of one common share at $0.12 and one warrant exercisable for a year at $0.15. The shares will be subject to a four-month hold.

Proceeds will go to exploration of the company’s Quatre Milles Graphite Property in southwest Quebec, its Vines Lake Property in north BC and for general working capital. The company has previously stated plans to verify historic, non-43-101 high-grade results on Quatre Milles and release a flake-graphite resource estimate by December.

Read a feature story about Lomiko Metals.

Valterra options South Ontario Graphite Property, announces VP Appointment

Valterra Resource Corp TSXV:VQA announced June 1 an option to acquire the Bobcaygeon Graphite Property in south Ontario. Under the agreement, Valterra pays $55,000, issues $400,000 in shares and spends $1.25 million by December 15, 2016. The optioner retains the right to mine vermiculite and limestone on the property and also retains a 1.5% royalty. Valterra may buy the royalty in 0.5% increments at $500,000 per increment.

Recent bulk samples from historical trenching on the 55-square-kilometre property show two grab assays of 51.98% and 66.15% carbon. Contingent on geophysical surveys, the company proposes trenching, sampling and 500 to 1,000 metres of drilling. The property is approximately 1.5 hours’ drive north of Toronto and is close to transport, power and numerous services.

Valterra also announced the appointment of Courtney Shearer as Vice-President and the resignation of Robert Liverant as director. Shearer has served as President, CFO, Corporate Secretary and Director for several public exploration and mining companies since 2000.

Rare Earth reports Ontario Graphite Trench Assays, Particle Size and Mineralogical Results

Rare Earth Metals Inc TSXV:RA reported May 30 trench assays and mineralogy-particle size results from its Manitouwadge Graphite Property in northwest Ontario. Trench assays show

  • 2.96% carbon over 12 metres
  • 3.92% over 8 metres
  • 4.18% over 6.5 metres
  • 2.04% over 6 metres
  • 2.13% over 4 metres

A particle size analysis of one sample showed 42.9% of flake sizes to be +35 mesh and 69.4% to be +65 mesh. Preliminary mineralogical analysis showed about 40% of the graphite is liberated at 20 mesh. An EM survey on the 2,072-hectare property shows a conductive trend over four kilometres long.

Rock Tech options Quebec Graphite Property for $140K, 4M Shares, 3% NSR, $300K Exploration

Rock Tech Lithium Inc TSXV:RCK announced May 30 an option to acquire a graphite property in southwest Quebec. Under the agreement, the company pays UniMera Holding Public Ltd an initial $20,000, $60,000 and 1.8 million shares three days after TSXV acceptance, $60,000 and 1.1 million shares 12 months after TSXV acceptance and $60,000 and 1.1 million shares 18 months after TSXV acceptance. UniMera retains a 3% NSR. Rock Tech may buy up to two-thirds of the NSR for $1 million per 1% NSR. The company must spend $300,000 on exploration within 12 months of TSXV approval.

The 1,923-hectare unnamed property is prospective for large-flake, crystalline graphite, the company states. The property hosts three graphite occurrences, the McLaren, Kelly and Burke, and two past-producing graphite mines, the Mayo and Plumbago. The property lies 45 kilometres from Gatineau, Quebec.

New Destiny options three Quebec Graphite Properties for $85K, 1.2M Shares, 2% Royalty, $100K Exploration

New Destiny Mining Corp TSXV:NED announced May 29 an option to acquire 100% of the North Low, Calumet and St-Aimé graphite properties in southwest Quebec. Under the agreement, the company pays an initial $10,000, $50,000 and 500,000 shares on TSXV approval, $25,000 and 500,000 shares six months after the execution date and 200,000 shares 12 months after the execution date. The vendors retain a 2% royalty on each property, half of which New Destiny may buy for $1 million. The company must spend $100,000 on exploration within 12 months of TSXV acceptance.

The 8.4-square-kilometre North Low Property is approximately 50 kilometres from Ottawa. Calumet covers 4.81 square kilometres, located 100 kilometres east of North Low. St-Aimé is contiguous to Timcal Graphite & Carbon’s Lac-des-Îles Mine, one of North America’s two flake-graphite producers.

Fortune delists from Frankfurt

Fortune Graphite Inc announced May 29 that it had voluntarily delisted from the Frankfurt Stock Exchange effective May 25. The company had been trading under the symbol ZTWN. Frankfurt now requires all listed companies to generate revenue. As an exploration company, Fortune doesn’t generate revenue, the company explained. Fortune had earlier announced that it was seeking a joint venture partner for its Superior Group of graphite claims in BC. The company also holds gold and silver properties, with the goal of entering production.

By Greg Klein

Read previous Graphite Digests here

Graphite Digest

April 20th, 2012

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