Big North Graphite Completes Its First Graphite Sale
August 15, 2013 (Source: Accesswire) — BIG NORTH GRAPHITE CORP. (TSX-V: NRT) (the “Company” or “Big North”), announces that it has completed its first graphite sale. The Company recently sold 200 tons of amorphous graphite, mined from the Company’s Nuevo San Pedro mine and additional feed mines located in Sonora Mexico, to a customer within Mexico. The graphite sold was a mine run, semi-processed product, consisting of a 3/4 inch minus size, yielding an average grade of 68% Cg. The mined graphite was processed at Big North’s processing facility located near the town of La Colorada, Mexico.
The Company commenced test mining at the Nuevo San Pedro project in May of this year and in July announced that it had mined, shipped and stockpiled 160 tons of graphite, leading to the sale of product this month.
Big North President Spiro Kletas stated, “Our goal has always been to become one of the first junior graphite companies to capture some of the market by making graphite sales and earning revenue for our shareholders. Today is a monumental day for Big North and our shareholders. We were able to sell the graphite in our inventory as soon as it was available for purchase. Further, we were able to sell this graphite as mine run. This initial sale demonstrates the significant demand for amorphous graphite and the fact that we are one of a few companies focusing not only on mining, but selling amorphous graphite, gives Big North a distinct advantage. As amorphous graphite is the largest segment of the natural graphite market by tonnage, our goal now is to grow our amorphous graphite mining and sales business for our shareholders.”
In 2012, approximately 1.1 million tonnes of natural graphite was produced worldwide. Of that, amorphous graphite represented 55% of the world’s graphite production, thus making it the largest segment of the natural graphite market. Further 89% of the world’s amorphous graphite supply comes from China. Mexico is currently the only source of North American amorphous graphite production, with none currently coming from the US and Canada. Russia used to supply amorphous graphite but the mine has since closed. (Source: Simon Moores, Industrial Minerals)
Amorphous graphite is one of the higher quality forms of carbon. Technically known in the market as micro-crystalline, the crystal structure is similar to that of flake graphite but on a smaller scale. The only higher quality forms of carbon are flake, vein and diamond.
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The major use for amorphous graphite is in steel production. It is the material of choice by steelmakers around the world to use as a recarburizer. Amorphous graphite is also the only mainstream dry lubricant in the world and is therefore used in many industrial processes from railroads to a wide range of industrial manufacturing.
Amorphous graphite is also used in brake linings, gaskets and clutch materials. Foundry facing mold wash uses amorphous or fine-flake graphite in a water-based paint to coat the mold, thereby allowing ease of separation of the casted object from the mold after the metal has cooled.
Big North, through its Mexican subsidiary Grafito la Barranca SA de CV, holds a 100% interest in the Aki Wiki concession and has a 50/50 joint venture on the Nuevo San Pedro Project. Both concessions are located in the San Jose de Moradillas region, a region that has produced graphite for more than 100 years. San Jose de Moradillas is located approximately 45 kilometers southeast of the city of Hermosillo, Mexico.
About Big North Graphite Corp.
Big North is a graphite development and exploration company focused on select projects in Mexico and Canada. The Company recently acquired 3 past producing amorphous graphite mines in Sonora, Mexico and is working towards accelerating the restart of the Nuevo San Pedro amorphous graphite mine. Big North is currently in the Test Mining phase at Nuevo San Pedro.
Recently, Big North announced that the Company had started the assembly of a processing plant that will be used for crushing, screening, sizing and drying of graphite to the specifications of future customers. Further, the Company has commenced a strategy of buying unprocessed amorphous graphite from local miners who do not possess the ability to process or ship to end users. Big North also owns high priority, large flake graphite exploration projects in Ontario and Quebec, Canada.
For further information please contact Spiro Kletas at (604) 629-8220.
ON BEHALF OF THE BOARD
(signed) “Spiro Kletas”
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The Company has not established mineral resources and has not completed a valid mining study (as defined by NI 43-101) to support its production decision at the Nuevo San Pedro Mine. Historically, a production decision under these circumstances results in much higher economic or technical risk. Furthermore, without a pre-feasibility or feasibility study and a graphite reserve, there can be no assurance that operations at Nuevo San Pedro will be profitable.
Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Except as required pursuant to applicable securities laws, the Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by the Company.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>