Saint Jean Carbon to acquire Quebec Cg property Saint Jean Carbon to acquire Quebec Cg property
Saint Jean Carbon Inc (C:SJL)
Shares Issued 91,700,960
Last Close 11/25/2014 $0.01
Wednesday November 26 2014 - News Release
Mr. Paul Ogilvie reports
SAINT JEAN CARBON SIGNS TERM SHEET FOR THE ACQUISITION OF THE MILLER EAST LUMP GRAPHITE PROPERTY
Saint Jean Carbon Inc. has entered into a non-binding agreement with an arm's-length party to acquire 100-per-cent interest in nine mineral claims, located in Quebec, Canada, called the Miller East property, adjacent to the east of Canada Carbon Inc. The historic Miller Graphite Project is a hydrothermal vein type graphite occurrence, and also lies within the vicinity of Caribou King Resources Ltd. (TSX-V: CKR) ("CKR"). The Company intends to sign a definitive binding agreement with respect to the Miller East shortly.
Steven Lauzier, PGeo, CKR's Calumet project geologist commented on September 18, 2013: "The graphitic marble block discovered at Calumet shows the high potential of the area and also reveals that more graphite mineralization can be present in the immediate area, probably due to a similar mineralization process as the Miller graphite hydrothermal system. The sulphidic block is also an indicator that hydrothermal processes may have happened in the area." (CKR press release September 18, 2013)
CCB is exploring its historic Miller Graphite Mine, and recently announced on September 12, 2013: "Of greatest significance is a large anomaly that extends from the previously announced (VN1) graphite vein discovery for 285 metres to the southeast and 15 m to the northwest. This large anomaly, located within the Eastern claim block, is elongated toward the east and also correlates with a magnetic gradient". CCB disclosed on September 12, 2013 that its VTEM geophysical anomaly "...is elongated toward the east and also correlates with a magnetic gradient."
The CEO of SJL, Mr. Paul Ogilvie stated: "we believe the Miller East property is the continuation of the Miller property held by Canada Carbon and that it falls within the same geological and regional areas as our Walker, Wallingford, St. Jovite and Clot lump graphite properties. Accordingly it is our plan to determine whether the anomalies that CCB reports do extend into our new claims. The area is historically rich in lump graphite, and we look forward to getting our feet on the ground as soon as we can with a preliminary geological exploration program.
Acquiring these additional claims fits with Saint Jean's efforts to develop an operational profile that leads to a lower overall cost base and a broad range of quality products. While important, the results of these efforts will continue to depend on additional development and analysis of all our properties. This work includes appropriate drill programs, feasibility studies, economic modeling, completed NI 43-101's, ongoing R&D efforts, and of course continued close contact with the graphite customer base.
That acknowledgement also fits with our broader recognition that the graphite sector needs not only new sources of product but also realistic development programs that will fit well with the existing market. The acquisition of these new Miller East claims further supports that effort and we look forward to continued and effective execution of all steps required to move forward. That is our commitment to our investors, customers, and ourselves as we build Saint Jean Carbon".
The Miller East and Page acquisition terms set out a payment of 3,000,000 shares on closing; and a further 500,000 shares one year from the anniversary of the closing provided always that the Claims produce graphite with a grade of 30%, a quality of 90% Cg and an ore quantity of 2,000,000 metric tons after Saint Jean Carbon has made up to $250,000.00 in exploration expenditures to verify same; and pay a 1.00 % royalty on the production cost of concentrate material. Acquisition is subject to the approval of the TSX Venture Exchange.
About Lump/Vein Graphite
Lump or Vein graphite is considered to be one of the rarest, commercially valuable, and highest quality types of natural graphite. It occurs in veins along intrusive contacts in solid lumps and is currently only actively mined in Sri Lanka. As a result of the carbon content typically found within lump/vein graphite, production costs are normally lower than flake or amorphous graphite recovery. Lump graphite processing techniques can include everything from hand sorting of large concentrated samples to standard crushing, grinding, froth flotation and milling. Lump/vein graphite is suitable for many of the same applications as flake graphite giving it a distinct competitive edge in terms market prices and product applications.
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