Alabama Graphite Corp. Files Mineral Resource Update Technical Report for Coosa Graphite Project in Coosa County, Alabama, USA
November 18, 2015 (Source: Marketwired) — Advancing the Premier Flake Graphite Project in the Contiguous United States of America
Alabama Graphite Corp. (“AGC” or the “Company“) (TSX VENTURE:ALP)(OTCQX:ABGPF)(FRANKFURT:1AG) has filed a National Instrument 43-101 (“NI 43-101”) technical report dated November 17, 2015, entitled, “Technical Report Alabama Graphite Corp. Coosa Project” under the Company’s SEDAR profile at www.sedar.com and its website at www.alabamagraphite.com. The comprehensive report includes details of the mineral resource estimate update (the results of which were announced on October 13, 2015) for AGC’s 100%-owned flagship Coosa Graphite Project located in east-central Alabama, USA. The Mineral Resource Estimate update and NI 43-101 technical report were prepared by Metal Mining Consultants Inc. of Highlands Ranch, Colorado and authored by Scott E. Wilson, C.P.G., and Stewart D. Redwood, F.I.M.M.M. – both independent Qualified Persons under NI 43-101 – using the most current Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Standards on Mineral Resources and Reserves, Definitions and Guidelines.
Highlights of the Updated Mineral Resource Estimate include:
• Indicated Mineral Resource of 78,488,000 tons, grading 2.39% Cg at a 1% cutoff grade, for a total of 1,876,000 tons contained graphite – the largest graphite Indicated Resource in the United States of America
• Inferred Mineral Resource of 79,443,000 tons, grading at 2.56% Cg at a 1% cutoff grade, for a total of 2,034,000 tons contained graphite
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• AGC’s 2015 drill program further substantiates the positive continuity of near-surface, oxidized higher-grade graphitic material, within a simple geological setting, successfully upgrading a significant amount of the previous Inferred resource to the Indicated resource category
• The drilling campaign successfully increased the amount of oxide material in the Mineral Resource Estimate
• The updated Mineral Resource Estimate will form the basis for an additional program of cost-effective infill trenching, which the Company anticipates will further upgrade the mineral resources to the Measured and Indicated categories
• AGC will utilize the Updated Mineral Resource Estimate to prepare its maiden Preliminary Economic Assessment (“PEA”) for the Coosa Graphite Project, scheduled for publication on November 27, 2015 (see October 22, 2015 announcement)
Table 1 – Coosa Graphite Project Mineral Resource Estimate
(effective date: October 2, 2015)
- A cutoff grade of 1% Cg was used for this Mineral Resource Estimate update. See technical report for additional information on mineral resource estimation methodology.
- Inferred Mineral Resources represent material that is considered too speculative to be included in economic evaluations. Additional trenching and/or drilling will be required to convert Inferred Mineral Resources to Measured or Indicated Mineral Resources.
- Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There is no guarantee that all or any part of the Mineral Resource will be converted into a Mineral Reserve.
As announced on October 22, 2015, AGC remains on schedule to publish the Coosa Graphite Project’s PEA NI 43-101 technical report on November 27, 2015, incorporating the Company’s drill results from 2012 to summer 2015.
Mr. Scott E. Wilson, C.P.G., of Metal Mining Consultants Inc., an independent Qualified Person as defined by National Instrument 43-101 guidelines, has reviewed and approved the technical content in this press release pertaining to the mineral resource estimate update.
Mr. Stewart D. Redwood, F.I.M.M.M, of Metal Mining Consultants Inc., an independent Qualified Person as defined by National Instrument 43-101 guidelines, has reviewed and approved the technical content in this press release pertaining to the mineral resource estimate update.
Mr. Richard R. Keevil, P.Geo., Alabama Graphite Corp. Vice President of Project Development, is a Qualified Person as defined by National Instrument 43-101 guidelines and has reviewed and approved the content of this news release.
About Alabama Graphite Corp.
Alabama Graphite Corp. is a Canadian-based flake graphite exploration and development company. The Company operates through its wholly owned subsidiary, Alabama Graphite Company Inc. (a company registered in the state of Alabama). With the most advanced flake graphite project in the contiguous United States of America, Alabama Graphite Corp.’s objective is to become the first producing American graphite mine this century. A highly experienced team leads the Company with more than a 100 years of combined graphite mining, graphite processing, specialty graphite products and applications, and graphite sales experience. Alabama Graphite Corp. is focused on the exploration and development of its flagship Coosa Graphite Project in Coosa County, Alabama, and its Bama Mine Project in Chilton County, Alabama.
As announced on October 13, 2015, the Coosa Graphite Project hosts an NI 43-101 Indicated Mineral Resource Estimate of 78.5 million tons grading 2.39% graphitic carbon (Cg) – the largest Indicated Mineral Resource of flake graphite in the United States. Please refer to the Company’s technical report titled “Technical Report – Alabama Graphite Corp. – Coosa Project” dated November 17, 2015, prepared by Metal Mining Consultants Inc. and authored by Scott E. Wilson, C.P.G. and Stewart D. Redwood, F.I.M.M.M., and filed on SEDAR at www.sedar.com.
Alabama Graphite Corp. holds a 100% interest in the mineral rights for these two U.S.-based graphite projects, which are both located on private land. The two projects encompass more than 43,000 acres and are located in a geopolitically stable, mining-friendly jurisdiction with significant historical production of crystalline flake graphite in the flake graphite belt of central Alabama, also known as the Alabama Graphite Belt (source: U.S. Bureau of Mines). A significant portion of the Alabama deposits are characterized by graphite-bearing material that is oxidized and has been weathered into extremely soft rock. Both U.S. projects have infrastructure in place, are within close proximity to major highways, rail, power and water, and are approximately three hours (by truck or train) to the Port of Mobile, the Alabama Port Authority’s deep-seawater port and the ninth largest port by tonnage in the United States (source: U.S. Army Corps of Engineers/USACE). The state of Alabama’s hospitable climate allows for year-round mining operations and the world’s largest marble quarry (which operates 24 hours a day, 365 days a year in Sylacauga, Alabama), is located within a 30-minute drive of the Coosa Graphite Project.
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; labor 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 labor 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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