Standard Graphite Receives Approval For Option To Acquire Historical Resource At Mousseau East Deposit In Quebec

Standard-GraphiteJune 25, 2012 (Source: Standard Graphite) — Vancouver, BC – June 25, 2012 – Standard Graphite Corp. (TSXV: SGH) (the "Company"), is pleased to announce that it has now received TSX Venture Exchange approval for the option agreement to acquire the Mousseau East Deposit located some 40 kilometres northeast of the town of Mont-Laurier in northwestern Québec, as originally disclosed in the Company's News Release dated April 24, 2012. The new property is located within 50 kilometres of Timcal Canada Inc.'s producing Lac-des-Îles Graphite Mine, which is currently the larger of the two producing mines in North America. Standard Graphite now intends to conduct strategic exploration with the aim of building a NI 43-101 compliant resource by upgrading the historical non-compliant resource on the property.

The Mousseau East Deposit was discovered in 1983 following the emplacement of a new road in the area north of Ste-Véronique, Québec. Systematic exploration was carried out by Graphicor between 1989 and 1993 with property-scale electromagnetic geophysical surveys along cut grids, and exploration and definition drilling leading to resource estimates. Drilling completed between 1989 and 1992 consisted of three successive campaigns and some 62 diamond drill holes, totaling 4996 metres, allowing for a resource calculation to be conducted. The possibility of initiating a mining operation was evaluated using only a 40-metre-deep open-pit on the main resource of the Mousseau East Deposit.

This preliminary evaluation of the mining potential was based on resource estimates calculated internally in 1992 by Graphicor Resources for the levels comprised between surface and -40 metres. This estimate was further verified and validated independently by Derry, Michener, Booth and Wahl (DMB&W), now based in Vancouver. The historical non-NI 43-101 compliant estimates quoted are presented in the table below.

Mousseau East Deposit
Historical Resource Estimates

Subscribe here to receive free daily InvestorIntel updates

 

Category 

 

Proven

Probable

Possible

 

Tonnes

Grade
(% Cg)

Tonnes

Grade
(% Cg)

Tonnes

Grade
(% Cg)

Graphicor

598,480

8.29

219,450

8.13

288,760

7.85

DMB&W

 

 

578,500

8.02

528,080

8.28

A qualified person has not completed the work necessary to verify the historical estimates as mineral reserves or resource for purposes of NI 43-101. The Company is not treating the historical mineral resource estimates as NI 43-101 defined current resources or reserves. The historical estimates should not be relied upon. This property will require considerable further evaluation, which Standard's management and consultants intend to carry out in due course.

It must be emphasized that this resource only takes into consideration the levels comprised between surface and -40 metres. The graphite horizon is anticipated to continue below the -40m level as well as along strike. Some further untested targets need to be explored, especially a widening of the conductive zone located some 600 metres to the SE of the main Mousseau East Deposit. The Company is planning due diligence work to begin soon on the project, and a field exploration program will be implemented following a complete assessment of the historical information. Due to the project having been left dormant since 1992, the Company has begun to assess the drill locations, cross sections, EM data, and proposed mine plan from previous operators.

Please click the following link for an overview of the Mousseau East project:

http://www.standardgraphite.com/i/pdf/mousseau.pdf

Terms

 The Terms of the Agreement have been amended from those disclosed in the Company's April 24th press release to the following: Standard will acquire a 100% interest in the project by making aggregate cash payments of $375,000 and issuing shares with an aggregate value of $400,000 (based on the ten day Volume Weighted Average Price subject to a minimum price per share of $0.30) prior to the Second Anniversary to the Vendor as follows:
(i) $25,000 in cash on signing Definitive Agreement; (ii) $50,000 in cash and $100,000 in common shares within 48 hours of TSX Venture Exchange (TSXV) approval; (iii) an additional $100,000 in cash and $100,000 in common shares on or before the first anniversary of TSXV approval; and (iv) an additional $200,000 in cash and $200,000 in common shares on or before the second anniversary of TSXV approval. In addition, the Company has agreed to a $100,000 work commitment to be completed on or before the first anniversary.

Bonuses of either $500,000 or $750,000 in either cash or shares are payable by Standard to the Vendor upon filing of a technical report within one year of TSXV approval, which discloses Measured & Indicated resources on the property of 5,000,000 and 8,000,000 tonnes respectively with a minimum grade of 6% Cg.

The Vendor will retain a 1% Net Smelter Royalty ("NSR") on the property that can be repurchased by Standard for $500,000.

Antoine Fournier, P.Geo., manages Standard's exploration and development programs and is the Qualified Person as defined by NI 43-101. He supervised the preparation of the technical information in this release.

About Standard Graphite

 Standard Graphite Corp is focused exclusively on the exploration and development of a large portfolio of flake graphite properties in Canada. The company is rapidly positioning itself as North America's premier pure-play graphite exploration company, and it controls 100% interest in 13 highly prospective graphite properties within known graphite districts in both Quebec and Ontario. An aggressive 2012 exploration strategy has commenced and is being implemented by a geologic team with the pedigree of a previous world-class graphite discovery.

ON BEHALF OF THE BOARD

"Chris Bogart"
President & CEO


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>