Alabama Graphite Announces Drill Program and looks ahead to a Preliminary Economic Assessment (PEA) at Its Coosa Project in Alabama, USA
April 21, 2015 (Source: Marketwired) — Alabama Graphite Corp. (“Alabama Graphite” or the “Company”) (TSX VENTURE:ALP)(OTCQX:ABGPF)(FRANKFURT:1AG) (WKN: A1J35M) (ISIN# CA0102931080) is pleased to announce that it has finalized plans for a diamond drilling program at its flagship Coosa Project in Alabama. Drilling will begin before the end of April, 2015.
The primary purpose of the drilling is to expand the oxide resource within the Coosa Project area. Previous drilling at the Coosa Project resulted in a published NI 43-101 resource containing both indicated and inferred categories. The current drill program will consist of infill drilling between the main Coosa indicated resource and inferred resources along the Northern Strat section. Additional holes are planned as step-outs to the south and southwest of the Coosa resource. A total of 31 holes are planned including four that will deepen existing sonic holes drilled in 2014.
In addition, an initial drill program will be commenced at the former Fixico Mine located on the Coosa property. Trenching around the Fixico Mine in late 2014 discovered long widths of graphitic schist. The program at the Fixico Mine will consist of three relatively deep holes drilled as a stratigraphic test across the heart of the mineralization. Three additional holes will be offset along strike. The Fixico Mine was one of the earliest graphite mines in Alabama. While it is in close proximity to the Coosa resource, it is hosted within a separate graphitic schist unit.
At total of 37 holes totaling approximately 6,500′ (1981m) will be drilled by 3D Drilling in the current program. The core will be logged and sampled by Alabama Graphite personnel using protocols established by Metal Mining Consultants of Highlands Ranch, CO. Assaying will be conducted by ActLabs of Ancaster, Ontario. In keeping with the Company’s environmental commitment, drill roads and pads will be reclaimed after drilling.
Concurrent with the drilling, the Company has also engaged Metal Mining Consultants to initiate preliminary CapEx and OpEx studies. Composites from the drill program will be submitted to SGS Labs in Lakefield, Ontario, for flake size distributions and purity analysis of the various factions. This work will be followed by flowsheet analysis to determine the equipment needed for the milling process.
“The purpose of this program is to expand the oxide portion of our resource,” states Ron Roda, President and CEO of Alabama Graphite. “The drill results will be used to update our NI 43-101 resource estimate. This updated resource – along with the flowsheet analysis and CapEx and OpEx studies – will be the basis for an inaugural Preliminary Economic Assessment (PEA). The PEA will focus exclusively on the soft, oxide resource which we feel is a unique characteristic that sets us apart from other graphite resources in North America. We expect completion and delivery of the PEA in the second half of, 2015”.
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The drill program is expected to take 45 days. Complete assay results are expected to be received by early July.
Rick Keevil, P. Geo., a Director of the Company and VP of Project Development, is a Qualified Person as defined by National Instrument 43-101, has reviewed the contents of this press release.
About Alabama Graphite
Alabama Graphite Corp.’s mission is to become one of the greenest graphite producers in the world. The Company, through its wholly-owned subsidiary, Alabama Graphite Company Inc., is conducting exploration and development both at its flagship Coosa Graphite Project in Coosa County, Alabama, USA and the recently acquired Bama project in Chilton County, Alabama, USA. These two advanced-stage projects are 100% owned by Alabama Graphite and are on private land. The two projects encompass over 43,000 acres and are located in an area with significant historical production of crystalline flake graphite. The Company has the largest NI 43-101 indicated flake graphite resource in the United States based on drilling 0.18 square miles (0.3% of the total acreage). The Alabama deposits are unique in that a significant portion of the graphite-bearing material is oxidized and has been broken down into an extremely soft rock. Both projects have in place critical infrastructure, are within close proximity to transportation routes and enjoy a hospitable climate allowing for year-round production and delivery. For further information and updates on the Company, please visit www.alabamagraphite.com.
Disclaimer for Forward-Looking Information
This press release contains forward-looking information under applicable Canadian securities laws (“forward-looking statements”) that are based on the beliefs of management and reflect Alabama Graphite Corp.’s current expectations. When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements. Such statements reflect the current view of Alabama Graphite Corp. with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements.
By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among other things, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of graphite; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the Company’s publicly filed documents. Forward-looking statements are also based on a number of assumptions, including that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for exploration is available as scheduled and does not incur unforeseen breakdowns, that no labour shortages or delays are incurred, that plant and equipment function as specified, that no unusual geological or technical problems occur, and that laboratory and other related services are available and perform as contracted.
Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made and Alabama Graphite Corp. undertakes no obligation to update forward-looking statements (unless required by law) if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.
Alabama Graphite Corp. cautions that the foregoing list of material factors and assumptions are not exhaustive. When relying on Alabama Graphite Corp. forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and assumptions and other uncertainties and potential events. Alabama Graphite Corp. has also assumed that the material factors and assumptions will not cause any forward-looking statements to differ materially from actual results or events. However, the list of these factors and assumptions is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
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