Mason Graphite initiates new exploration program at Lac Guéret following completion of $5 million private placement financing
July 3, 2013 – Montreal, Quebec (Source: Canada Newswire) — Mason Graphite Inc. (“Mason Graphite” or the “Company”) (TSX.V: LLG) announces that, following the completion of a $5 million private placement financing (see press release dated June 28, 2013), it is initiating its 2013 exploration program at its Lac Guéret graphite property. The exploration campaign will include approximately 15,000 metres of drilling, designed to test for further continuity of the mineralization of the GC and GR Zones, which in the aggregate cover 100 hectares, as well as surface work and drilling on other graphite mineralized areas located on the 11,630 hectare property.
In addition to the exploration campaign, the Company intends to conduct metallurgical test work on sections of the 26,500 metres of core drilled last year in order to further its understanding of all the mineralized areas of the deposit, and to optimize the positive results published by the Company in February 2013, which were based on testing conducted on approximately 1,400 kg of graphite-bearing mineralization collected at the surface of the current mineral resource. Such results include graphite recoveries in excess of 96%, concentrate purity of 96.3% graphite for the +150 mesh (106 µm) cumulative and a particle size distribution of 29% of +80 mesh (180 µm) cumulative, including 16% of +50 mesh (300 µm).
The Company also intends to complete the environmental baseline studies that were initiated in June 2012, which represents an important milestone for the project permitting.
In 2012, the company completed a drilling program consisting of 163 drill holes (approximately 26,500 meters) which was successful in delineating mineralization with similar grades outside of the current mineral resource envelope (see press releases dated November 21, 2012, February 28, 2013 and April 3, 2013). An updated mineral resource estimate incorporating the results from the 145 drill holes completed in 2012 on the GC Zone is expected to be completed in September 2013.
The Company also announces that it has granted an aggregate of 885,000 options to officers, employees and consultants of the Company. Each option will allow for the purchase of one common share of Mason Graphite at a price of $0.60 until July 2, 2018. The options will vest in three installments, with one third vesting upon issuance, one third vesting one year following issuance, and one third vesting two years following issuance. The option grant is subject to acceptance by the TSX Venture Exchange.
Quality Control and Assurance
Nathalie Guillemette, P. Geo, a consultant to the Company, and Jean L’Heureux, Eng., Executive Vice-President of Process Development, both Qualified Persons as defined by National Instrument 43-101 have read and approved the scientific and technical content of 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 has also completed a Preliminary Economic Assessment study which features 22 years of production at 27.4% Cgr and a pre-tax internal rate of return of 33.7% (see technical report issued by the Company on June 6, 2013). The Company’s senior management team possesses significant graphite expertise from their experience at Timcal/Imerys; including Benoit Gascon, CPA, CA, who held executive positions for 20 years, 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, Chief Financial Officer 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.
Get our daily investorintel update
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>