Galaxy Graphite Corp. (‘Galaxy’, TSX.V: GXY) announced that it has received the permit from the Quebec ministry of Natural Resources to begin drilling, starting on 24 August, 2012, at the Sun Graphite property, located 125 km northeast of Baie-Comeau, QC. The initial drilling campaign will involve 25-30 holes, 75-125 meters in depth over 2500 – 3000 metres. Galaxy recently completed a mapping, prospecting and sampling program and is expecting to assay results shortly. Galaxy currently owns 4,200 hectares at Sun Graphite, 145 km north of Baie Comeau, Quebec and it has an option to acquire a 100% interest in the property. Outokumpu Mines originally discovered large flake graphite mineralization in 1998 while searching for base metals. The property is located in the highly prospective Central Meta-sedimentary Belt of the Grenville geological province, host to many active graphite projects featuring comparable geological settings, characterized by the presence of high carbon content (94%-97%) coarse flake graphite.
The host rocks for both deposits are graphitic crystalline marbles, similar to the host stratigraphy at Timcal's Lac des Iles graphite mine, currently Canada's only producing graphite mine. The historical record shows that graphite was found in areas 20 meters in width appearing in prominent 20-30 cm wide vein form and containing 10% graphite. Galaxy has therefore access to a very favorable property for graphite mineralization, suitable for applications such as Li-ion batteries to pebble bed nuclear reactors and structural composite material applications. Galaxy Capital, whose official name has been changed to Galaxy Graphite Corporation (the stock symbol remains GXY), has an significant practical advantage over some of the other emerging graphite projects. Galaxy’s exploration plans are fully funded such that the field work and preliminary assessments can proceed without delays and financial obstacles. Galaxy’s CEO, Chris Davies, has an extensive mining experience spanning 44 years at such companies as Cameco and Inco (now Vale SA). He was also involved in the Deep Bay graphite project in Saskatchewan.