Galaxy Graphite announces 11.5% Carbon
Galaxy Graphite Corp. (‘Galaxy’, TSXV: GXY) announced assay results from its fall 2012 mapping and sampling program on the Buckingham graphite project in Quebec. One sample taken from the property analyzed for size distribution contains 11.5% Cg, with 54.42% large flakes in excess of 80 mesh. The market was evidently very pleased with the results rewarding Galaxy with a 233% increase (moving from $0.03 to $0.07) in share price at the end of trading on February 7.
These results have confirmed both last summer’s expectations that the property would be capable of producing 10% graphitic carbon or better and that the fact that flake graphite is the common form of graphite in the deposit. Galaxy also noted that the host rocks for its deposits are graphitic crystalline marbles, similar to the host stratigraphy at Timcal’s Lac des Iles graphite mine, which is the only graphite producing mine in Canada.
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Chris Healey, Galaxy’s President and CEO, commented on the quality of the deposit noting in a press release that “a substantial portion of the graphite being of the high demand large-jumbo flake size.” This is the variety of graphite suitable for use in high value applications such as Li-ion batteries to pebble bed nuclear reactors and structural composite material applications. While graphite can be separated from host rock, it requires processing to achieve the kind of grades that make it commercially viable and pure enough for the kinds of applications that are driving demand for this mineral (well above 90% purity). It is relatively easy to separate graphite from its host rock, though processing is required to produce high grades (90% and above).
Buckingham is one of two of Galaxy’s graphite properties in the Grenville geological province in Quebec; the other one is the Sun Graphite Property and Buckingham Graphite Property. The Buckingham Graphite property includes two former producing mines located in the Central Meta-sedimentary Belt of the Grenville geological province, which has attracted considerable interest from graphite miners in the past two years. The two properties cover a total of 1,324 hectares on 22 mining claims.
The graphite is located in marbles in contact with quartzites and biotite gneiss, and in shear zones within the quartzites. Galaxy is now studying the next drill program, which will focus on the extensions of the old mine workings.
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’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.