Fundemental Research initiates coverage Go to researchfrc.com to read,free sign-up necessaryHighlights from report;
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Graphite One Resources Inc. holds the option to earn a 100%
interest in the Graphite Creek property near Nome, Alaska.
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A maiden NI 43-101 resource estimate gives a base case inferred
resource of 107.2 million tonnes grading 5.78% Cg (cut-off grade
– 3% Cg) containing 6.2 million tonnes of graphite. Lowering the
cut-off grade to 2% Cg increases this to
164.5 million tonnes
grading 4.61% Cg
. Increasing the cut-off grade to 10% Cg gives
a
high grade zone of 7.8 million tonnes grading 13.49% Cg. We
believe this is the largest NI 43-101 compliant resource estimate in
North America.
•
The current resource covers 2.2km of the possible 18km long
mineralized trend, showing the potential of the property for further
resource expansion.
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The property has a potential resource extension containing 9.87-
38.9 million tonnes of graphite. This is over 4.4km of the
mineralized trend.
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The 2013 drill program will be focused on infill drilling with the
goal of increasing confidence in the current resource to produce a
Preliminary Economic Assessment (PEA) by early 2014.
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Near-term catalysts include; release of metallurgical testing
results, drill results from the upcoming 2013 program, an updated
resource estimate and the release of the PEA.
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We initiate coverage on GPH with a BUY rating and a fair value
of $0.50 per share.