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Alabama Graphite Corp. Com ABGPF



GREY:ABGPF - Post by User

Comment by TheLongOne12345on Jun 03, 2016 6:29pm
309 Views
Post# 24933305

RE:RE:RE:RE:New Here

RE:RE:RE:RE:New HereThe comparison of resource size under the legal definition may put gph ahead of alp but if you look at the size and consistency of the exploration work alp has done with surface samples and geophysics that are not included in the resource calculation it is easy to extrapolate that the resource that alp advertises is physically only a tiny percentage of the at surface mineable resource on their 40,000 plus acre property. 

The comparison of grade cannot be considered alone  without looking at other operational costs.  If a company has 10%Cg but it is on the side of a mountain between layers of hard rock that has to be blasted and excavated to get at the graphite and then you have to extensively crush and grind it to extract the graphite creating lots of low purity graphite dust in in the process it is easy to see that although alp has lower grade, the other factors that affect the OPEX far outweigh the lower grade. These advantages are:
-Their deposit is at surface.....more so than others that claim the same.  They will not have to waste money removing as much waste. 
-They have the only oxidized resource in North America meaning no need for drilling and blasting to mine it and less crushing and grinding during processing and less low purity fine flakes in the final product
-close to end users, this is important because graphite is a bulky industrial mineral that is expensive to ship compared to other minerals.  Since raw graphite is only worth $1000/t if it costs you $500/t to ship it that is significant
-the cost of labour in some of these remote areas is significant compared to Alabama. 

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