EDITOR: | June 7th, 2013

Mason Graphite files Preliminary Economic Assessment Technical Report for its Lac Guéret Project

| June 07, 2013 | No Comments
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  June 6, 2013 — MONTREAL (Source: Canada Newswire) — Mason Graphite Inc. (“Mason Graphite” or the “Company”) (TSX.V: LLG) has filed a National Instrument 43-101 compliant technical report dated June 6, 2013 entitled “NI 43-101 Technical Report on the Preliminary Economic Assessment, Lac Guéret Graphite Project, Québec-Canada” under its profile on SEDAR at www.sedar.com and its website at www.masongraphite.com. The report contains a comprehensive breakdown of the preliminary economic assessment (“PEA”) of the Company’s 100% owned Lac Guéret Project, the results of which were announced in a news release dated April 22, 2013.

PEA Highlights

Financial Highlights
      – Initial direct capital costs of $89.9M
      – Production costs of $390 per tonne of finished product
      – $364M pre-tax NPV (8% discount); $283M pre-tax NPV (10% discount)
      – 33.7% pre-tax Internal Rate of Return
      – Payback period of 2.5 years
      – 22-year mine life
      – Average sales price of $1,525 per tonne

 

Operational Highlights
      – Annual production of 50,000 tonnes of graphite concentrate
      – 27.4% average LOM graphite content in the mineralization
      – Graphite recovery above 96%
      – Up to 96.4% Cgr of finished product purity
      – Stripping ratio of 0.76:1

Full technical details and notes for the PEA can be found in the technical report entitled “NI 43-101 Technical Report on the Preliminary Economic Assessment, Lac Guéret Graphite Project, Quebec, Canada” dated June 6, 2013 and effective April 22, 2013, which is available under Mason Graphite’s profile on SEDAR at www.sedar.com and on Mason Graphite’s website at www.masongraphite.com.

Cautionary Note: A PEA is preliminary in nature and includes Inferred Mineral Resources, which are considered too geologically speculative to have mining and economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability.  There is no certainty that the reserves development, production, and economic forecasts on which the PEA is based will be realized.

Quality Control and Assurance

Mary-Jean Buchanan, Eng. M.Env., of Met-Chem Canada Inc., an independent Qualified Person as defined by National Instrument 43-101, for the purposes of the PEA has reviewed the technical content of this press release. Jean L’Heureux, Eng., Executive Vice President Process Development for Mason Graphite, and a Qualified Person for Mason Graphite, has read and approved this press release.

About Mason Graphite

Mason Graphite is a Canadian mining company focused on the exploration and development of its 100% owned Lac Guéret graphite property, which is located in northeastern Québec near the main service center of Baie-Comeau. The Lac Guéret property currently hosts a National Instrument 43-101 compliant Mineral Resource (see news release issued on July 16, 2012), which considers the exploration of only 17% of one well defined zone. Excellent potential exists for mineral growth. The Company’s senior management team possesses significant graphite expertise from their experience at Timcal/Imerys; including Benoit Gascon, CPA, CA, who held 20 years of executive positions, including over 6 years as President and CEO; Jean L’Heureux, Eng., Executive Vice President Process Development, with over 20 years of experience; and Luc Veilleux, CPA, CA, CFO and Executive Vice President, with 8 years of experience. Timcal, now owned by Imerys, is one of the largest graphite producers in the world.

Cautionary Statements Regarding Forward Looking Information

This press release contains “forward-looking information” within the meaning of Canadian securities legislation. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: (i) volatile stock price; (ii) the general global markets and economic conditions; (iii) the possibility of write-downs and impairments; (iv) the risk associated with exploration, development and operations of mineral deposits; (v) the risk associated with establishing title to mineral properties and assets; (vi) the risks associated with entering into joint ventures; (vii) fluctuations in commodity prices; (viii) the risks associated with uninsurable risks arising during the course of exploration, development and production; (ix) competition faced by the resulting issuer in securing experienced personnel and financing; * access to adequate infrastructure to support mining, processing, development and exploration activities; (xi) the risks associated with changes in the mining regulatory regime governing the resulting issuer; (xii) the risks associated with the various environmental regulations the resulting issuer is subject to; (xiii) risks related to regulatory and permitting delays; (xiv) risks related to potential conflicts of interest; (xv) the reliance on key personnel; (xvi) liquidity risks; (xvii) the risk of potential dilution through the issue of common shares; (xviii) the Company does not anticipate declaring dividends in the near term; (xix) the risk of litigation; and (xx) risk management.

Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued exploration activities, no material adverse change in metal prices, exploration and development plans proceeding in accordance with plans and such plans achieving their stated expected outcomes, receipt of required regulatory approvals, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Such forward-looking information has been provided for the purpose of assisting investors in understanding the Company’s business, operations and exploration plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this press release, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws.

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.

SOURCE: Mason Graphite Inc.


Raj Shah

Editor:

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>


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