Graphite One to Publish Inaugural Preliminary Economic Assessment on Graphite Creek Project
February 4, 2015 (Source: Marketwired) — Graphite One Resources Inc. (TSX VENTURE:GPH)(OTCQX:GPHOF) (“Graphite One” or the “Company”) is pleased to provide operational guidance for 2015 on its 100% owned Graphite Creek Project located near Nome, Alaska.
- Remaining assays from 2014 drilling program to be released shortly
- Updated 43-101 resource report to be completed by end of Q1 2015
- Inaugural PEA to be published by end of Q2 2015
- Metallurgical program underway on drill core bulk samples, results expected by end of Q1 2015
2014 Drilling Results (February 2015)
Graphite One completed its 2014 drill program in October, with 22 holes totaling 2,296.6 meters, in preparation for a revised NI 43-101 compliant resource estimate. The program focused on infill drilling between holes utilized in the 2014 inferred resource, serving to increase confidence in the continuity and distribution of the graphite mineralization over a 1000m strike length of the 4.8km long Graphite Creek deposit (see news release dated December 1, 2014).
“The high-grade, near surface assays demonstrate that Graphite Creek stands to be North America’s premier large flake, high-grade graphite deposit,” said President and CEO Anthony Huston. “In addition, the mineralization continuity and geological structures favour potential low-cost open pit mining scenarios.” Driven primarily by Electric Vehicle Battery manufacturing, industry analysts project global graphite demand to grow by 9% annually – requiring added production of approximately 800,000 metric tonnes by 2020. The newly-released US Geological Survey’s Mineral Commodity Summary report indicates that for the 24th year in a row, the United States remains 100% dependent on foreign-sourced graphite, with China the world’s leading producer at 67%. Commenting on these geopolitical factors, CEO Huston noted that, “Every trend we see tells us that U.S. efforts to reinvigorate its manufacturing base and pioneer the development of new technologies will require a robust and reliable source of domestic graphite.”
Final results from the Graphite One 2014 drilling program are expected in mid-February 2015 and will be incorporated in an updated 43-101 compliant resource estimate.
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Graphite One initiated a metallurgical test work program in November utilizing drill core from the Graphite Creek deposit to evaluate the processing parameters of representative samples of the two upper zones of mineralization seen in the drilling. Five bulk samples of grades ranging from 2.5 to 9.4%Cg were composited from one half-drill core from hole 12GC005 that is located in the main resource area. These samples include mineralization from the graphite-garnet-sillimanite-biotite schist and from the biotite-graphite schist.
The program includes mineralogical studies by polished sections and prepared polished samples to characterize the ore and gangue mineral contents and inter-relations. The five head samples are being tested by flotation and gravity separation techniques, with the goal of optimizing the process flow sheet for the potential processing facility. Separation of the waste material from the graphite is being designed with the goal of retaining as much of the large graphite flake particles as possible.
This metallurgical program is expected to be completed by the end of Q1 2015 and will be incorporated into the PEA.
Updated 43-101 Resource Estimate (Q1)
Graphite One released an updated mineral resource estimate in January 2014 totaling 186.9 Million Tonnes(“Mt”) of 5.5% Graphitic Carbon using a cut-off grade of 3%, and 95.9 Mt of 7.2% Cg at a 5% cut-off grade (see news release January 20, 2014).
|Cut -off Grade
(% Cg 1)
|1 Cg – graphitic carbon|
|2 This Technical Report recommends a based cut-off value of 3.0% Cg|
|3 Tonne = 1,000 kg (2,204.6 lbs). The tonnage and in situ graphite have been rounded off to the nearest hundred, and therefore may not tally due to rounding.|
|Note 1: Mineral resources are not mineral reserves and 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.|
|Note 2: The quality and grade of reported inferred resource in these estimations are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource, and it is uncertain if further exploration will result in upgrading them to an indicated or measured resource category.|
|Note 3: The economic viability of mineral resources may be materially affected by geology, environment, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.|
In Q2 2015, the Company will incorporate the full 2014 drilling program results into a revised 43-101 compliant resource estimate aimed at converting a portion of the inferred mineral resources into the indicated category – a key step in the development of the Graphite Creek project.
Preliminary Economic Assessment (Q2 2015)
Graphite One remains on schedule to publish its inaugural Preliminary Economic Assessment (“PEA”) on the Graphite Creek Project in Q2 2015, incorporating its 2014 drill results and the upcoming revised 43-101 compliant mineral resource estimate.
“The first half of 2015 should prove to be a very rewarding period for Graphite One stakeholders,” stated Anthony Huston. “We anticipate the PEA will provide guidance on the project’s economic robustness to end buyers and financial partners. Being a US-based asset, our shareholders are uniquely positioned to leverage the inevitable increase in US graphite demand from smart power energy storage and lithium-ion battery consumption.”
The Company remains fully funded to complete these milestones in 2015.
About Graphite One Resources Inc.
GRAPHITE ONE RESOURCES INC. (TSX VENTURE:GPH)(OTCQX:GPHOF) is a mineral exploration company with extensive experience in the state of Alaska and a business strategy to identify, acquire, and explore high potential projects ready for rapid advancement. The Graphite Creek Property on the Seward Peninsula of Alaska fits with the Graphite One business strategy offering significant potential for the discovery and development of a large flake, graphite deposit exposed at surface.
David R. Hembree, CPG., General Manager Operations and a “Qualified Person” under NI 43-101, is responsible for and has reviewed and approved the technical content of this press release.
ON BEHALF OF THE BOARD OF DIRECTORS
“Anthony Huston” (signed)
For more information on Graphite One Resources Inc. please visit the Company’s website, www.GraphiteOneResources.com.
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.
This release includes certain statements that may be deemed to be forward-looking statements. All statements in this release, other than statements of historical facts that address timing of closing the offering, final amount raised under the offering, receipt of regulatory approvals, exploration drilling, exploitation activities and events or developments that the Company expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, changes in government policies regarding mining and natural resource exploration and exploitation, and continued availability of capital and financing, and general economic, market or business conditions. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this press release, and the Company undertakes no obligation to update publicly or revise any forward-looking information, except as required by applicable securities laws. For more information on the Company, investors should review the Company’s continuous disclosure filings that are available at www.sedar.com.
The mineral resource estimates reported in this press release were prepared in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects(“NI 43-101”), as required by Canadian securities regulatory authorities. For United States reporting purposes, the United States Securities and Exchange Commission (“SEC”) applies different standards in the classification of mineralization. In particular, while the terms “measured”, “indicated” and “inferred” mineral resources are required pursuant to NI 43-101, the SEC does not recognize such terms. Canadian standards differ significantly from the requirements of the SEC. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories constitute or will ever be converted into reserves. In addition, “inferred” mineral resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities laws, issuers must not make any disclosure of results of an economic analysis that includes inferred mineral resources, except in rare cases.
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>