Graphite Week-in-Review: the Snowden Effect and Zenyatta Defies Market Gravity +6.84%
The ProEdgeWire Graphite & Graphene Sponsors Index fell by -9.34% over last week. Perhaps this trend will turn around with the whereabouts of whistleblower Edward Snowden currently unconfirmed and a review of US-Chinese relations under analysis? The United States believe that Snowden is in Russia and White House officials are demanding that the former Central Intelligence Agency (CIA) employee be handed over, and are articulating their disapproval for the role of the Chinese in facilitating his travel out of Hong Kong…has many discussing sustainability…yet, again.
For those of our audience unaware of the Chinese control on graphite, you may find it interesting that the Chinese process 80% of all graphite…95% of the rare earths — we are watching this story carefully and will use this political event to reiterate the lack of sustainability in these advanced materials outside of China.
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Let’s start with some good news…
Zenyatta Ventures Ltd. (TSXV: ZEN | OTCQX: ZENYF) performed exceptionally well and exceeded all expectations. The stock went up by 6.84% in the Canadian market and 4.35% in the US market. Zenyatta RPA Inc. to complete a National Instrument (‘NI’) 43-101 Mineral Resource Estimate on its 100% owned Albany graphite deposit in northern Ontario, Canada. RPA will evaluate the data from the drill program until the end of August and then independently estimate a resource thereafter.
RPA (formerly Roscoe Postle and Associates Inc.) is a group of technical professionals who have provided advice to the mining industry for 30 years. RPA provides services to the mining industry at all stages of project development from exploration and resource evaluation through economic assessment.
Zenyatta is developing a very rare hydrothermal or ‘vein-type’ graphite deposit it discovered in 2011 in northeastern Ontario, Canada. It is (according to some sources)the largest and only known graphite deposit of this type under development in the world. Globally, the only graphite mines of this type are located in Sri Lanka, which have been in production since 1847. The current high grade, underground mining operations produce only 5,500 tonnes annually from narrow (5-10cm) veins. Despite the lack of volume, Sri Lankan ‘vein-type’ graphite has enjoyed great demand due to its unusually high purity and unique physical properties. Graphite veins are quite rare and in many industrial applications offer superior performance due to higher thermal and electrical conductivity.
Flinders Resources Ltd. (TSXV: FDR) recently provided an update on the metallurgical test programs and mine planning from the Woxna Graphite Project in Sweden. The test results are as follows:
- The graphite product mix produced far exceeded historical production purities and flake graphite sizes;
- Overall graphite recovery from the locked cycle test exceeded 96;
- Mine planning optimization studies have further reduced stripping ratios by 37;
Now for this week’s numbers:
Tracy Weslosky is the Founder and CEO of InvestorIntel Corp., a company that publishes InvestorIntel.com. A leading e-news source for investors, entrepreneurs and industry leaders ... <Read more about Tracy Weslosky>